California vs Illinois Taxes
Compare the total tax burden between California (1% – 13.3%) and Illinois (4.95% flat). Enter your income to see which state saves you more.
| Tax Component | California | Illinois |
|---|---|---|
| Federal tax | $13,170 | $13,170 |
| State tax | $4,911 | $4,805 |
| FICA | $7,650 | $7,650 |
| Total tax | $25,731 | $25,625 |
| Take-home | $74,269 | $74,375 |
| Effective rate | 25.73% | 25.63% |
| Annual Difference | $106 more | $106 less |
The $106 difference is primarily because California has a progressive income tax with rates up to 13.3%, while Illinois has a flat 5.0% income tax. At your income level, California's marginal rate is 9.3% vs Illinois's 5.0%.
Why the difference
You'd save $106/year ($9/month) in Illinois vs California.
Tax structure
California uses progressive brackets up to 13.3%, while Illinois has a flat 5.0% state income tax.
Effective rate at your income
At $100,000, Illinois's effective state rate is 4.8% vs 4.9% in California — a 0.1 percentage point gap.
Tip: California's progressive brackets mean your effective rate is much lower than the top marginal rate for most earners. At $100,000, the effective state rate is approximately 4.91%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can be a large annual cost on a median-value home.
California Total Tax
25.73% effective rate
Illinois Total Tax
25.63% effective rate
Annual savings
by living in Illinois
Tax at Different Income Levels
| Income | California Total Tax | Illinois Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,073 | $16,975 | +$903 |
| $100,000 | $25,731 | $25,625 | Save $106 |
| $150,000 | $45,770 | $43,489 | Save $2,281 |
| $200,000 | $65,284 | $60,828 | Save $4,456 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $106/year ($9/month) in Illinois vs California.
Tax structure
California uses progressive brackets up to 13.3%, while Illinois has a flat 5.0% state income tax.
Effective rate at your income
At $100,000, Illinois's effective state rate is 4.8% vs 4.9% in California — a 0.1 percentage point gap.
Tip: California's progressive brackets mean your effective rate is much lower than the top marginal rate for most earners. At $100,000, the effective state rate is approximately 4.91%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can be a large annual cost on a median-value home.
Understanding Each State
California
California has the highest top marginal state tax rate in the US at 13.3% (single filers over $1,000,000, including the Behavioral Health Services Tax surcharge), with progressive brackets starting at 1%. Despite high taxes, California's economy — tech, entertainment, agriculture — attracts top talent globally. Under OBBBA, the SALT deduction cap is $40,400 for 2026 ($20,200 if married filing separately), but it is cut by 30 cents for every dollar of MAGI above $505,000, down to a $10,000 floor — so the highest-income California itemizers see only partial federal relief.
Tip: California's progressive brackets mean your effective rate is much lower than the top marginal rate for most earners. At $100,000, the effective state rate is approximately 4.91%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
Illinois
Illinois has a flat income tax rate of 4.95% on all taxable income. While the rate is moderate compared to states like California or New York, Illinois's high property taxes (average about 1.97% of home value, among the highest nationally) significantly increase the total tax burden, particularly for homeowners.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can be a large annual cost on a median-value home.
Key Comparison Points
Income tax structure: California has a progressive income tax (1% – 13.3%), while Illinois has a flat income tax (4.95% flat).
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in California or Illinois?
Based on income tax alone, Illinois has a lower tax burden. At $100K income, you'd save $106 annually in Illinois compared to California. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from California to Illinois?
A single filer earning $100,000 would save approximately $106 per year in total taxes by living in Illinois instead of California. At $150,000 income, the savings change to $2,281 per year.
What is the income tax rate in California?
California has a progressive income tax with rates of 1% – 13.3%.
What is the income tax rate in Illinois?
Illinois has a flat income tax with rates of 4.95% flat.