Moving from Illinois to the Texas Hill Country

Income tax, property tax, and total retirement cost comparison

Illinois has a 4.95% flat income tax on all retirement income (pensions, IRA, 401k). Texas has zero income tax. That alone saves a couple drawing dollar sign 80K in retirement income dollar sign 3,960 per year. Illinois property taxes are the highest in the nation (typically 2.5-3%+). Kerr County runs 0.85-1.0% effective. The combined tax advantage is substantial.

Texas Tax Advantages

Texas has no state income tax and no tax on Social Security, pensions, or retirement distributions. At 65+, the combined $200,000 school district exemption plus the permanent school tax freeze makes the long-term property tax position even stronger.

What to Expect

The Texas Hill Country offers a genuinely different lifestyle from suburban master-planned retirement communities. Kerrville has about 23,000 residents; Fredericksburg about 12,000. You are choosing small-town Texas with Hill Country scenery, wineries, and German heritage culture — not a resort amenity package. The Meridian is a gated community with a clubhouse and walking trail; Ingram Oaks has lake access and a pool. Neither has the golf courses, pickleball complexes, or lifestyle programming of a Del Webb Sun City. That is either the point or a deal-breaker depending on what you are looking for.