New York vs Illinois Taxes
Compare the total tax burden between New York (3.9% – 10.9%) and Illinois (4.95% flat). Enter your income to see which state saves you more.
| Tax Component | New York | Illinois |
|---|---|---|
| Federal tax | $13,170 | $13,170 |
| State tax | $4,860 | $4,805 |
| FICA | $7,650 | $7,650 |
| Total tax | $25,680 | $25,625 |
| Take-home | $74,320 | $74,375 |
| Effective rate | 25.68% | 25.63% |
| Annual Difference | $55 more | $55 less |
The $55 difference is primarily because New York has a progressive income tax with rates up to 10.9%, while Illinois has a flat 5.0% income tax. At your income level, New York's marginal rate is 5.9% vs Illinois's 5.0%.
Why the difference
You'd save $55/year ($5/month) in Illinois vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while Illinois has a flat 5.0% state income tax.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) avoids the city income tax, but commuter taxes and higher property taxes may partially offset the savings.
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.
New York Total Tax
25.68% effective rate
Illinois Total Tax
25.63% effective rate
Annual savings
by living in Illinois
Tax at Different Income Levels
| Income | New York Total Tax | Illinois Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,861 | $16,975 | +$115 |
| $100,000 | $25,680 | $25,625 | Save $55 |
| $150,000 | $44,500 | $43,489 | Save $1,011 |
| $200,000 | $62,401 | $60,828 | Save $1,573 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $55/year ($5/month) in Illinois vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while Illinois has a flat 5.0% state income tax.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) avoids the city income tax, but commuter taxes and higher property taxes may partially offset the savings.
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
New York
New York's state income tax has progressive brackets reaching 10.9%. New York City residents pay an additional city income tax, making the combined state+city marginal rate the highest combined rate in the nation. Yonkers residents also pay a surcharge calculated as a percentage of their New York State tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) avoids the city income tax, but commuter taxes and higher property taxes may partially offset the savings.
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: New York has a progressive income tax (3.9% – 10.9%), 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 New York or Illinois?
Based on income tax alone, Illinois has a lower tax burden. At $100K income, you'd save $55 annually in Illinois compared to New York. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from New York to Illinois?
A single filer earning $100,000 would save approximately $55 per year in total taxes by living in Illinois instead of New York. At $150,000 income, the savings change to $1,011 per year.
What is the income tax rate in New York?
New York has a progressive income tax with rates of 3.9% – 10.9%.
What is the income tax rate in Illinois?
Illinois has a flat income tax with rates of 4.95% flat.