Residency rules, sticky taxes, and first-year steps (2026)
2026.1 Edition · Revised 2026-07-24 · DomusDay Research
The move changes the rate; the record decides whether it sticks. Illinois keeps taxing until domicile actually changes — clear and convincing evidence to overcome the residency presumptions, with no fixed day threshold to hide behind. Below: what follows leavers, and the Texas steps that build the record.
Who has to show it: on the taxpayer asserting the change; only one domicile at a time.
At Illinois's top marginal rate (4.95%), every $100,000 of taxable income is $4,950 of state tax — an illustration at the top bracket, not an effective-rate calculation. Official rate tables are linked below.
Texas voters amended the constitution in 2019: the legislature may not impose a tax on the net incomes of individuals. Reversing it would take another statewide constitutional vote, not just a legislature.
Source ↗Unlike Florida or Nevada, Texas has no statutory declaration-of-domicile instrument. The Texas record is built from dated acts — the license, vehicle and voter registrations, the homestead application, and where life actually happens.
Source ↗After a November 2025 constitutional vote, school districts exempt $140,000 of homestead value. Applications go to the county appraisal district by April 30 — a dated, recorded tie to the new state.
Source ↗Texas is the easy half. Illinois decides whether the move counts, and it decides on evidence — the two tests below stay live until the record closes them out.
The full rules, the audit program, and every source: the complete Leaving Illinois guide →
The headline delta: Illinois taxes its top bracket at 4.95% while Texas has no personal income tax. At the top marginal rate — an illustration, not an effective-rate calculation — every $100,000 of taxable income is $4,950 of state tax that stops accruing once Illinois residency actually ends. The rules above decide when that is; the day count and the domicile record decide whether it holds up.
The first weeks in Texas matter more than they look: each step below produces a dated document, and dated documents are what answer a Illinois examiner years later. Do them early and the record starts on your side of the timeline.
New residents obtain a Texas driver license within the 90-day grace period; the skills exam is generally waived for a valid out-of-state license.
Source ↗Vehicles are titled in Texas within 30 days of the move.
Source ↗Vehicles are registered within 30 days. Since January 1, 2025, non-commercial vehicles need no safety inspection — a replacement fee is collected at registration instead; emissions testing continues in 17 counties.
Source ↗Voter registration is filed in the county of residence; the registration deadline is the 30th day before an election.
Source ↗The residence homestead exemption removes $140,000 of value from school taxes for an owner occupying the home as their principal residence; applications go to the county appraisal district by April 30, with late filing accepted up to two years.
Source ↗The Texas Constitution exempts the homestead from forced sale for most debts — an automatic feature of Texas homestead status, with exceptions for purchase-money, taxes, and certain liens.
Source ↗Texas registration requires 30/60/25 liability coverage — $30,000 per injured person, $60,000 per accident, $25,000 property damage.
Source ↗Texas has no personal income tax return to file; sole proprietorships are also exempt from the state franchise tax.
Source ↗Everything Texas asks of a new resident, on its own plate: the Moving to Texas guide →
Every rule on this page traces to a statute, regulation, or agency publication, listed in full on each state's own plate.
IL-1040 with Schedule NR — one schedule serves both part-year residents and nonresidents, taxing everything from the resident period plus Illinois-source income afterward.
Only if domicile actually changes: the estate tax reaches Illinois-domiciled decedents above the $4 million exclusion, with no spousal portability. The same residency record that answers an income-tax audit answers this.
No. Article 8 §24-a of the Texas Constitution, approved by voters in 2019, bars the legislature from taxing the net incomes of individuals. There is no personal return to file.
A Texas driver license within 90 days, vehicle title and registration within 30, voter registration in your county, and the homestead exemption application by April 30. Each produces a dated record.
No — Texas has no statutory declaration-of-domicile instrument. The domicile record is built from the license, registrations, the homestead exemption, and the pattern of daily life, so the dated steps above carry the evidentiary weight.
2026.1 Edition · Revised 2026-07-24 · DomusDay Research