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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Florida VS COUNTRY B Illinois

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

Daniel · CountryTaxCalc Updated May 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Florida and Illinois sit at opposite ends of the tax spectrum in one key dimension: income tax. Florida charges zero; Illinois charges 4.95% on all income with no deductions for earned income. But Illinois has something Florida does not: the highest effective property tax rate in the United States (tied with New Jersey), averaging 1.88%. On a $350,000 home in suburban Chicago, property tax bills of $7,000–$10,000/year are common. Florida's effective property tax rate of approximately 0.78% is less than half of Illinois's. The full comparison requires looking at all costs together. On income tax alone, a Florida earner at $100,000 saves $4,950 versus Illinois. But Florida's property insurance crisis — driven by hurricane risk, litigation, and reinsurance costs — adds $4,000–$8,000/year in many Florida counties, dramatically more than Illinois's $1,000–$2,000/year. For homeowners, the property insurance difference partially or fully offsets the income tax saving at lower income levels. For high earners or renters, Florida's zero income tax advantage is decisive. Illinois does offer significant retirement income exemptions: Social Security and qualified pension income are fully exempt (constitutionally protected), which complicates the retirement comparison significantly. For working-age earners and self-employed individuals, the Florida advantage is clear.
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
Florida
TAX RATE
0%
No State Income Tax

Zero state income tax; no tax on wages, investment income, or business income

🏙️
COUNTRY B
Illinois
TAX RATE
4.95% flat
Flat Rate, Tied for Highest Property Taxes in US

4.95% flat rate on all income; property taxes tied for the highest in the US (with New Jersey) at 1.88% effective rate

TYPICAL ANNUAL DIFFERENCE
Moving from Illinois → Florida at $100,000
$4,950

Florida saves $4,950/year vs Illinois at $100K income on income tax. However, Florida property insurance typically runs $4,000–$8,000/year vs Illinois $1,000–$2,000/year. For homeowners, factor insurance costs into the comparison. Illinois property taxes are tied for the highest in the US (1.88%, with New Jersey) but Florida's insurance crisis partially offsets the income tax advantage.

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
🌴 FL TAX
🏙️ IL TAX
SAVINGS
10-YEAR
$50,000
$0
$2,475
FL saves $2,475/yr on income tax
$24,750
$75,000
$0
$3,713
FL saves $3,713/yr on income tax
$37,130
$100,000
$0
$4,950
FL saves $4,950/yr on income tax
$49,500
$150,000
$0
$7,425
FL saves $7,425/yr on income tax
$74,250
$250,000
$0
$12,375
FL saves $12,375/yr on income tax
$123,750
💡

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🌴

Florida Pros & Cons

+ PROS
  • Zero state income tax — no tax on any income source
  • No estate or inheritance tax
  • Property tax rate ~0.78% — less than half of Illinois's 1.88%
  • Homestead Exemption up to $50,000 on primary residence assessed value
  • Year-round warm climate with no winter costs
− CONS
  • Property insurance crisis: $4,000–$8,000+/year in many counties — 2–4x Illinois costs
  • Hurricane and flood risk — growing in severity and cost
  • Extreme summer heat and humidity throughout the state
  • Rising housing costs in major Florida markets
🏙️

Illinois Pros & Cons

+ PROS
  • Property taxes high (1.88%, tied for highest in the US) but predictable — no insurance crisis uncertainty
  • Social Security fully exempt from state income tax
  • Qualified pension income constitutionally exempt — public employees pay no IL income tax
  • Strong healthcare in Chicago and major metros
  • Lower property insurance: $1,000–$2,000/year vs Florida's $4,000–$8,000+
− CONS
  • 4.95% flat income tax on all earned income — applies to wages, self-employment, investment income
  • Tied for the highest effective property tax rate in the US, at 1.88% (with New Jersey)
  • Chicago suburbs regularly see $7,000–$12,000/year property tax bills
  • Significant pension funding crisis affecting long-term state financial stability
  • Cold winters with high utility and infrastructure costs
FAQ

Frequently Asked Questions

Is Florida or Illinois better for a $100K salary earner?

On income tax alone, Florida saves $4,950/year. However, the full picture depends on whether you own a home. If you rent: Florida wins clearly — $4,950/year in income tax savings with no property cost difference. If you own a $400,000 home: Illinois property tax ~$7,520/year (at 1.88%) vs Florida ~$3,120/year — Illinois costs $4,400 more in property tax. Add the income tax ($4,950 more in Illinois) and the total Illinois disadvantage is roughly $9,350/year. Florida also costs more in insurance (~$4,000–$6,000 more/year). Overall, homeowners at $100K often find the costs roughly comparable or slightly favour Florida, with income tax saving offset by higher insurance.

Why is Illinois property tax so high?

Illinois property taxes fund local governments and schools, with the state providing minimal support. There is no state income tax earmarked for local government funding, so property taxes fill the gap. Cook County (Chicago) and the collar counties have among the highest effective rates in the US — often 2.0–2.8%. There is no strong Homestead Exemption comparable to Florida's $50,000 reduction. The Senior Freeze Exemption (for 65+ with income under $65,000) limits increases but doesn't significantly reduce absolute bills. For renters, Illinois's high property taxes are invisible — the comparison is purely income tax, where Florida wins clearly.

Does Illinois tax retirement income differently than earned income?

Yes, significantly. Illinois exempts Social Security benefits and qualified pension income from state income tax — this includes public employee pensions (SERS, TRS, IMRF), federal pensions, and military pensions. This exemption has constitutional protection under Article 13 Section 5 of the Illinois Constitution. Traditional IRA and 401(k) withdrawals are taxed at 4.95%. For retirees drawing from public pensions and Social Security, Illinois income tax is effectively zero — making the comparison with Florida primarily about property tax and insurance, not income tax.

How does Florida's property insurance crisis affect the comparison?

Florida's property insurance market has been in crisis since 2020–2021, with major insurers exiting the state, premiums surging, and many homeowners forced onto Citizens Property Insurance (the state insurer of last resort). Average Florida property insurance premiums in 2024 exceed $4,000/year statewide and reach $6,000–$10,000+ in coastal South Florida. Illinois homeowners typically pay $1,000–$2,000/year. For a homeowner moving from Illinois to Florida, the insurance increase ($3,000–$6,000/year) is a significant and often underestimated cost that partially offsets the income tax saving.

Which is better for remote workers — Florida or Illinois?

For remote workers, Florida is almost always better. With no state income tax, a remote worker earning $120,000 saves $5,940/year by living in Florida versus Illinois. Florida also has no local income tax (unlike Illinois). The main countervailing factors are property insurance (higher in Florida) and cost of living (comparable or higher in major Florida markets than Illinois outside Chicago). For renters working remotely, the $4,950–$7,425/year income tax saving at $100K–$150K is clear-cut. For owners, the insurance differential narrows but usually doesn't close the gap.

Does Florida or Illinois have better sales tax?

Florida's state sales tax is 6%, with local add-ons bringing most counties to 6–7.5% total. Illinois's state sales tax is 6.25%, but local sales taxes in Chicago and surrounding areas push the effective rate to 10–11% — among the highest in the country. Chicago's combined sales tax rate of 10.25% makes everyday purchases meaningfully more expensive than in Florida, where rates outside special districts are typically 6–7.5%.
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