can I hold a state ID if I am licensed to drive in another state

Yes.

Edit:

I was wrong. I depends on the State. I would check with the DMV with Texas and Illinois

 

I don't know specifically but I did work for the DMV in Florida for two years. What I can tell you is this- getting an ID in the same state as your DL usually cancels the DL and all states are connected (we'd see people's suspensions, pull up records from other states, etc.).

Do you not drive anymore? If you still plan on driving with the DL, I wouldn't get an ID.

Why not just get an Illinois DL? If you give them your Texas DL, you shouldn't have to take tests or anything. Or are you trying to avoid transferring your registration and all? Is your move temporary? If it's permanent, just get everything switched over and save yourself the hassle.

EDIT: Just to add, one of our questions when issuing an ID or DL was "Do you hold a valid DL in any other state?" If you say yes, they may tell you that the ID will cancel it. If you say no, you're committing perjury.

 

Paging @Lemonte

 

i work at this every day, but they change so much, but in Texas you can only have one ID. You can have either a texas driver license or a texas ID. If you come from another state and present an ID from another state, they will confiscate it.

 

I think the REAL ID act prohibited licenses in two states. Florida was the primary state that did this. Because they had so many snowbirds, Florida had a special provision that allowed people to keep their home state's license and obtain a Florida-only license. But the Federal REAL ID act prohibited that and I don't believe any state will legally allow you to have two licenses anymore.