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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A California VS COUNTRY B Illinois

Side-by-side analysis of income tax, effective rates, and take-home pay for California and Illinois in 2026.

Daniel · CountryTaxCalc Updated May 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Illinois has a flat 4.95% income tax, while California charges progressive rates from 1% to 13.3%. Moving from CA to IL saves $403/year on $100k income (IL's flat rate vs CA's ~5.2% effective). However, Illinois has much higher property taxes (1.88% vs CA 0.70%). Overall, Illinois offers tax savings for high earners, while California is competitive for expensive homeowners. Migration is relatively balanced.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🌴
COUNTRY A
California
TAX RATE
1-13.3%
Progressive

9 brackets, up to 13.3%

🌆
COUNTRY B
Illinois
TAX RATE
4.95%
Flat Rate

Flat 4.95% on all income

TYPICAL ANNUAL DIFFERENCE
Moving from Illinois → California at $100,000
$403

That's $34/month back in your pocket

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🌴 CA TAX
🌆 IL TAX
SAVINGS
10-YEAR
$50,000
$1,193
$2,330
-$1,137
-$11,370
$100,000
$5,208
$4,805
$403
$4,030
$200,000
$14,508
$9,755
$4,753
$47,530
$500,000
$44,121
$24,605
$19,516
$195,160
💡

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🌴

California Pros & Cons

+ PROS
  • Lower property tax: 0.70% (Prop 13 protects homeowners vs IL's 1.88%)
  • Tech salaries: Silicon Valley/SF highest in US ($250k-$500k+ total comp)
  • Perfect weather: Year-round sunshine, 280 sunny days (vs IL harsh winters)
  • World-class universities: Stanford, Berkeley, Caltech, UCLA
  • Better for low earners: Progressive system (1-4% on first $40k)
− CONS
  • Highest income tax: 13.3% top rate, ~5.2% effective at $100k
  • Housing crisis: Median home $750k+ (SF $1.5M), rent $2,500-4,000/month
  • SALT cap: Raised to $40,000 MFJ / $20,000 single (2026–2029 under OBBBA), but phases out above $500K MAGI — still limits deductibility for top CA earners
  • Traffic: LA/SF commutes average 30-60 minutes daily
  • High cost of living: 40% more expensive than Illinois
🌆

Illinois Pros & Cons

+ PROS
  • Lower income tax: 4.95% flat (vs CA's ~5.2% at $100k, 13.3% at top)
  • Housing affordability: Chicago median home $350k (vs SF $1.5M, LA $900k)
  • Cost of living: 40% cheaper than California overall
  • Chicago culture: World-class architecture, museums, food scene
  • Public transit: CTA/Metra 2nd best in US (after NYC)
− CONS
  • Highest property tax: 1.88% (tied for highest in US, with New Jersey) costs $2,950-$11,800 more/year
  • Harsh winters: -10°F, snow, ice (vs CA year-round sunshine)
  • Population loss: Losing residents to lower-tax states
  • Pension crisis: Underfunded state pensions threaten future tax increases
  • Higher for low earners: 4.95% flat hurts those earning <$70k
FAQ

Frequently Asked Questions

How much will I save moving from California to Illinois?

It depends on income level. At $100,000 income, Illinois saves $403/year (CA ~5.2% effective vs IL 4.95%). At $500,000 income: IL saves $19,516/year. However, low earners (<$70k) pay more in IL due to flat rate. Property taxes favor CA dramatically—on a $1M home, CA pays $7,000/year vs IL $18,800/year (difference of $11,800/year).

Why is Illinois property tax so high?

Illinois is tied with New Jersey for the highest property tax rate in the US (1.88%) because it relies on property taxes to fund schools, municipalities, and massive public pension obligations. Chicago/Cook County rates are 2.0-2.5%. Illinois has one of worst-funded pension systems in US, driving up property taxes. California's Prop 13 caps property tax at 1% of purchase price + 2%/year increases.

Which state is better for tech workers?

California wins for tech workers: Silicon Valley/SF offer highest salaries in world ($250k-$500k+ total comp for senior engineers), best career growth, stock options worth millions. However, Chicago has growing tech scene with much lower cost of living (40% cheaper) and lower income tax (4.95% vs CA 9.3-13.3%). Choose CA for career max, IL for cost savings.

Is California or Illinois better for homeowners?

California strongly favors homeowners due to Prop 13. On a $1M home: CA pays $7,000/year property tax (capped), IL pays $18,800/year (difference of $11,800/year). This can fully offset IL's income tax advantage for expensive homeowners. However, CA home prices are 68% higher, so total housing costs still favor IL.
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