Moving from Chicago to Austin: What Nobody Tells You
Moving from Chicago to Austin: What Nobody Tells You
Quick Answer: If you are moving from Chicago to Austin, almost everyone will warn you about property taxes. For a Chicago buyer, that warning is mostly backwards. Property taxes are close to a lateral move. The number that actually changes your life is the state income tax line, and Texas does not have one.
By Brandon Holley, Broker/Owner, Holley Homes Realty
If you would rather watch than read, the full video is right above.
When you tell people you are moving from Chicago to Austin, you get the same warning every time. They lean in and tell you to watch out for the Texas property taxes. After working with relocation buyers for years, I can tell you that for someone leaving Cook County, that warning lands almost completely backwards. The property tax math is close to a wash. The line that changes your monthly take-home is a different one entirely, and most agents skip right past it.
Let me walk you through what actually changes in your budget, what stays the same, and the one surprise that can still catch a Chicago buyer off guard.
Are property taxes higher in Austin than in Chicago?
For most Chicago buyers, no. Chicago and Cook County already carry some of the highest property taxes in the country, with effective rates commonly landing in the 1.9 to 2.2 percent range, and plenty of suburbs run higher. A typical Austin-area home outside a special district often falls in that same 1.8 to 2.2 percent range. On property tax alone, you are looking at a lateral move, not a cliff.
The income tax line that actually changes everything
Here is the part the property tax warning skips. Illinois charges a flat 4.95 percent state income tax on every dollar you earn. Texas charges nothing.
Say your household brings in 150,000 dollars a year. In Illinois, that flat income tax pulls roughly 7,000 dollars out of your pocket every single year. In Texas, that number is zero. That is not a one-time closing surprise. That is money back in your budget every year you live here.
When I tour relocation buyers around South Austin, this is the moment the math clicks. The property tax stays roughly the same, but the income tax disappears, and that shows up in real dollars every month.
What your Chicago budget actually buys here
The headline prices are closer than you would think. The median home in the city of Chicago sits around 420,000 dollars. The Austin metro as a whole is around 440,000 dollars.
Where you actually win is the new construction. The city of Austin itself runs higher than the metro average. The places I work every day, South Austin, Buda, Kyle, and Bastrop, are where a lot of the new construction lives, and much of it lands between 350,000 and 500,000 dollars.
Factor | Chicago / Cook County | Austin Area (S. Austin, Buda, Kyle, Bastrop) |
|---|---|---|
Effective property tax | About 1.9 to 2.2 percent | About 1.8 to 2.2 percent (no district) |
State income tax | 4.95 percent flat | None |
Median / typical price | Around 420,000 dollars | Metro around 440,000; new builds 350,000 to 500,000 |
Winters | Snow and a long gray season | Mild and livable |
Summers | Shorter, milder | Long, triple-digit days June to September |
So a Chicago buyer trading a 420,000 dollar condo or bungalow can very often find a newer, larger home for similar money, keep the income tax savings, and stop shoveling a driveway every winter.
The MUD surprise to check before you buy
Now the honest catch. Some of these newer Austin-area communities sit inside a MUD, a municipal utility district. A MUD adds its own line to your property tax bill, and it can push your rate above what you were paying in Cook County. The home that looked like a steal can quietly cost you more than your Chicago place did.
The fix is simple. You ask one question before you fall in love with any new build: is this home in a MUD or a PID, and what does that add to the tax rate? That single question has saved my buyers from real sticker shock more than once.
If you would like to see a related video on this topic, the one above (or below) is a great next watch.
How to decide which suburb fits
Here is how I would think about it if I were you.
- If your top priority is keeping more of your paycheck, you are already winning the moment you cross the state line, because that 4.95 percent income tax disappears no matter which suburb you choose.
- If your top priority is the lowest possible tax rate on the house itself, lean toward established neighborhoods without a MUD and check the rate on every single property before you write an offer.
- The one thing to avoid is comparing a Chicago home to an Austin home on sticker price alone. Two homes at the same price can carry very different tax bills depending on the district.
Who this fits best: Chicago households earning a solid income who want that 4.95 percent back every year, buyers who want a newer home with a warranty and a yard, and anyone tired of long gray winters.
Who should look elsewhere: Buyers who love a true four-season climate and would genuinely miss snow, and anyone who is not ready to verify a community's MUD or PID status before falling for a floor plan.
The honest truth about Austin summers
I am not going to pretend the trade is free. Austin summers are long and hot, and they are getting hotter. You will trade snow and gray for a stretch of triple-digit days from about June into September. I would rather you hear that from me now than feel ambushed in your first July.
What you get back is a winter you can actually live in, a longer outdoor season, and roughly nine months a year where the lake, the greenbelt, and the patio are all on the table. For most of the Chicago families I work with, that math comes out in Austin's favor, but you should walk in with your eyes open.
Want the full picture before you book a flight? Grab my Central Texas Relocation Guide. It walks you through neighborhoods, budgets, and the questions to ask before you move. If new construction is on your radar, pair it with the Central Texas MUD and PID Checklist so you never get surprised by a tax line.
Frequently Asked Questions
Are property taxes higher in Austin than in Chicago? For most Chicago buyers, no. Cook County effective rates commonly run 1.9 to 2.2 percent, and many suburbs run higher. A typical Austin-area home outside a special district often sits in that same 1.8 to 2.2 percent range, so on property tax alone it is closer to a lateral move than a jump.
Does Texas have a state income tax? No. Texas charges zero state income tax. Illinois charges a flat 4.95 percent on every dollar you earn. For a household making 150,000 dollars a year, that is roughly 7,000 dollars back in your pocket every single year you live in Texas, which is the line that most changes your monthly budget.
What is a MUD and how does it affect my property tax? A MUD is a municipal utility district. It adds its own line to your property tax bill to pay for infrastructure, and it can push your effective rate above what you paid in Cook County. Always ask whether a home is in a MUD or PID, and what that adds to the rate, before you make an offer.
What can my Chicago home budget buy in the Austin area? A lot of new construction in South Austin, Buda, Kyle, and Bastrop lands between 350,000 and 500,000 dollars. A Chicago buyer trading a roughly 420,000 dollar condo or bungalow can often find a newer, larger home with a warranty and a yard for similar money, while keeping the income tax savings.
Is the Austin summer worth leaving Chicago winters for? That is a personal call. You trade snow and gray for triple-digit days from June into September. In exchange you get a livable winter and roughly nine months a year of outdoor time. For most Chicago families I work with, the trade comes out in Austin's favor, but you should walk in knowing the summers are real.
About the Author
Brandon Holley is the Broker and Owner of Holley Homes Realty in Austin, Texas. He works with first-time homebuyers, new construction clients, and relocation buyers moving to Central Texas from across the country. Brandon hosts a recurring segment on American Dream TV and runs the YouTube channel Your Austin Home Guide, where he breaks down communities, builders, and neighborhoods across Austin, Buda, Kyle, Bastrop, and the surrounding suburbs.
Have a question or thinking about a move to Central Texas? Reach out anytime.
Grab some time - https://calendar.app.google/xsaBqSKfNaXiuZXs7
YouTube - https://www.youtube.com/@brandonholleyhomes
About me - https://holleyhomesrealty.com/agents/brandon-holley
I understand now may not be the right time and I never want to be pushy, just know that I am here if you have questions, would like to start planning, or need anything.
