Pennsylvania vs Illinois Taxes
Compare the total tax burden between Pennsylvania (3.07% flat) and Illinois (4.95% flat). Enter your income to see which state saves you more.
| Tax Component | Pennsylvania | Illinois |
|---|---|---|
| Federal tax | $13,170 | $13,170 |
| State tax | $3,070 | $4,805 |
| FICA | $7,650 | $7,650 |
| Total tax | $23,890 | $25,625 |
| Take-home | $76,110 | $74,375 |
| Effective rate | 23.89% | 25.63% |
| Annual Difference | $1,735 less | $1,735 more |
The $1,735 difference is primarily because Illinois has a flat 5.0% income tax, while Pennsylvania has a flat 3.1% income tax. At your income level, Illinois's marginal rate is 5.0% vs Pennsylvania's 3.1%.
Why the difference
You'd pay $1,735/year ($145/month) more in Illinois vs Pennsylvania.
Tax structure
Pennsylvania has a flat 3.1% state income tax, while Illinois has a flat 5.0% state income tax.
Effective rate at your income
At $100,000, Pennsylvania's effective state rate is 3.1% vs 4.8% in Illinois — a 1.7 percentage point gap.
Pennsylvania local taxes
Many Pennsylvania municipalities levy an earned income tax (typically 1-3%); Philadelphia wage tax is 3.75% for residents.
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, you still owe the city's non-resident wage tax. PA's exemption of retirement income makes it attractive for retirees.
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.
Pennsylvania Total Tax
23.89% effective rate
Illinois Total Tax
25.63% effective rate
Annual savings
by living in Pennsylvania
Tax at Different Income Levels
| Income | Pennsylvania Total Tax | Illinois Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $15,710 | $16,975 | +$1,265 |
| $100,000 | $23,890 | $25,625 | +$1,735 |
| $150,000 | $40,814 | $43,489 | +$2,675 |
| $200,000 | $57,213 | $60,828 | +$3,615 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd pay $1,735/year ($145/month) more in Illinois vs Pennsylvania.
Tax structure
Pennsylvania has a flat 3.1% state income tax, while Illinois has a flat 5.0% state income tax.
Effective rate at your income
At $100,000, Pennsylvania's effective state rate is 3.1% vs 4.8% in Illinois — a 1.7 percentage point gap.
Pennsylvania local taxes
Many Pennsylvania municipalities levy an earned income tax (typically 1-3%); Philadelphia wage tax is 3.75% for residents.
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, you still owe the city's non-resident wage tax. PA's exemption of retirement income makes it attractive for retirees.
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
Pennsylvania
Pennsylvania has a flat income tax rate of 3.07% — one of the lowest flat rates in the US. Many municipalities levy an additional earned income tax, and Philadelphia residents pay a city wage tax on top of the state rate. PA does not tax retirement income (401k, IRA, Social Security).
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, you still owe the city's non-resident wage tax. PA's exemption of retirement income makes it attractive for retirees.
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: Pennsylvania has a flat income tax (3.07% flat), 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 Pennsylvania or Illinois?
Based on income tax alone, Pennsylvania has a lower tax burden. At $100K income, you'd save $1,735 annually in Pennsylvania compared to Illinois. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Illinois to Pennsylvania?
A single filer earning $100,000 would save approximately $1,735 per year in total taxes by living in Pennsylvania instead of Illinois. At $150,000 income, the savings change to $2,675 per year.
What is the income tax rate in Pennsylvania?
Pennsylvania has a flat income tax with rates of 3.07% flat.
What is the income tax rate in Illinois?
Illinois has a flat income tax with rates of 4.95% flat.