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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Illinois VS COUNTRY B Massachusetts

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Illinois and Massachusetts have nearly identical flat income tax rates — Illinois at 4.95% and Massachusetts at 5% — making the income-tax gap the smallest in this batch of comparisons: just $25/year at $100,000 income ($4,805 in Illinois vs $4,780 in Massachusetts, Massachusetts slightly cheaper), a gap that actually flips direction at higher incomes — Illinois pulls $175/year ahead at $500,000 ($24,605 vs $24,780) as Massachusetts's flat exemption loses relative value faster than Illinois's. Property tax tells a much bigger story: Illinois's average effective rate (~1.88%, tied for the highest in the US with New Jersey) is nearly double Massachusetts's (~1.00%), a gap worth about $3,520/year on a $400,000 home. Combined income-plus-property tax at $100,000 income and a $400,000 home favors Massachusetts by roughly $3,545/year, despite its slightly higher nominal income tax rate — the property tax difference dominates. Neither state charges local income tax anywhere, so city-level add-ons aren't a factor for either. On retirement income, Illinois is considerably more generous: it fully exempts Social Security, pensions, and 401(k)/IRA withdrawals from state tax, while Massachusetts has no blanket exemption and taxes most retirement account withdrawals at the full 5% flat rate.
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
Illinois
TAX RATE
4.95%
Flat Tax

Flat 4.95% rate on all income — highest flat-tax rate in the US; no local income tax anywhere

🏛️
COUNTRY B
Massachusetts
TAX RATE
5%
Flat Tax + Surtax

5% flat rate, plus 4% surtax on income over $1 million; no local income tax anywhere

TYPICAL ANNUAL DIFFERENCE
Moving from Massachusetts → Illinois at $100,000
$25

That's $2/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
🌽 IL TAX
🏛️ MA TAX
SAVINGS
10-YEAR
$50,000
$2,330
$2,280
$50
$500
$75,000
$3,568
$3,530
$38
$380
$100,000
$4,805
$4,780
$25
$250
$150,000
$7,280
$7,280
$0
$0
$250,000
$12,230
$12,280
$50
$500
$500,000
$24,605
$24,780
$175
$1,750
💡

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🌽

Illinois Pros & Cons

+ PROS
  • Income tax is close to a wash with Massachusetts — Illinois is actually slightly cheaper only at higher incomes (up to $175/year at $500K)
  • Fully exempts retirement income: Social Security, pensions, and 401(k)/IRA withdrawals are all tax-free at the state level, at any age
  • No local income tax anywhere in the state — no city adds a wage tax on top of the flat state rate
  • Chicago's deep finance, tech, and manufacturing job market offers salaries that can outweigh the state's high property tax burden
− CONS
  • Highest average property tax in the country (tied with New Jersey at ~1.88%) — about 88% higher than Massachusetts's ~1.00%, enough to flip the combined burden in Massachusetts's favor on a $400,000+ home
  • $139 billion in unfunded pension liabilities creates ongoing risk of future tax increases
  • Illinois's flat 4.95% applies from the first dollar of taxable income, with no $0 bracket like Ohio's to soften the burden for lower earners
  • Illinois is actually slightly more expensive than Massachusetts on income tax up to $150,000 (by $25-$50/year) before its smaller exemption starts working in its favor — no real income-tax edge before property tax is factored in
🏛️

Massachusetts Pros & Cons

+ PROS
  • Much lower average property tax (~1.00%) than Illinois (~1.88%, tied for highest in the US) — saves about $3,520/year on a $400,000 home
  • On combined income-plus-property tax at $100,000 income with a $400,000 home, Massachusetts comes out roughly $3,545/year cheaper than Illinois overall
  • World-class biotech, healthcare, and higher-education job markets (Boston/Cambridge) with salaries that often exceed the Midwest
  • No local income tax anywhere in the state — a Boston resident pays only the 5% flat state rate, no city add-on
− CONS
  • Higher nominal flat income tax rate than Illinois (5% vs 4.95%) — though thanks to a bigger exemption, Massachusetts is actually the cheaper of the two up to $150,000 income; only Illinois pulls narrowly ahead above that
  • No blanket retirement-income exemption — pensions and 401(k)/IRA withdrawals are taxed at the full 5% rate, unlike Illinois's full exemption
  • 4% surtax applies to income over $1 million (total 9%), a consideration for high earners that Illinois's flat 4.95% doesn't have
  • Far higher cost of living, especially housing, in the Boston metro area compared to most of Illinois outside Chicago
FAQ

Frequently Asked Questions

Is Illinois or Massachusetts cheaper for state income tax?

They're extremely close, and which one is cheaper actually depends on income. At $100,000, Massachusetts is marginally cheaper — $4,780 versus Illinois's $4,805, a difference of just $25/year. Massachusetts stays slightly ahead below $150,000; the two are exactly tied at $150,000 ($7,280 each); above that, Illinois pulls into the lead, reaching a $175/year edge at $500,000.

Which state has lower property tax, Illinois or Massachusetts?

Massachusetts has the clearly lower average effective property tax rate at roughly 1.00%, compared to Illinois's roughly 1.88% — tied for the highest in the US with New Jersey. On a $400,000 home, that's about $4,000/year in Massachusetts versus $7,520/year in Illinois, a savings of about $3,520/year.

So which state actually wins on combined income plus property tax?

Massachusetts wins clearly once property tax is added in. At $100,000 income with a $400,000 home, Massachusetts's combined bill (about $8,780) is roughly $3,545/year lower than Illinois's (about $12,325), because Massachusetts's large property-tax savings easily outweigh Illinois's income tax, which at this income level is actually very slightly higher than Massachusetts's, not lower.

Does either state tax retirement income like 401(k) and IRA withdrawals?

Illinois fully exempts Social Security, pensions, and 401(k)/IRA withdrawals from state tax at any age. Massachusetts has no such blanket exemption and taxes most pensions and retirement account withdrawals at the full 5% flat rate (Social Security itself is not taxed by either state). For retirees drawing heavily on a 401(k) or pension, Illinois is meaningfully more favorable.

How much would I save moving from Massachusetts to Illinois?

At $100,000 income, moving from Massachusetts to Illinois actually costs about $25/year more in state income tax, not less — Massachusetts is the slightly cheaper state at that income level (Illinois only pulls ahead above $150,000). Once you factor in Illinois's much higher property tax (~1.88% vs Massachusetts's ~1.00%), most homeowners would come out significantly behind by moving, whether they're above or below the income-tax crossover point.

Why is the income tax difference between Illinois and Massachusetts so small?

Both states use flat tax rates that are almost identical — Illinois at 4.95% and Massachusetts at 5%, just 0.05 percentage points apart. Each applies its own separate exemption rather than the federal one, so the dollar gap is small and actually crosses over with income: Massachusetts is about $50 cheaper at $50,000, the two are exactly tied at $150,000, and Illinois pulls about $175 ahead at $500,000.

Does Massachusetts's millionaire surtax affect this comparison?

No. The 4% surtax applies only to income over $1 million, well above the $500,000 top income tested here. A Massachusetts resident earning $1.5 million would pay 5% on the first $1 million plus 9% (5%+4%) on the remaining $500,000, but that scenario falls outside the range most readers comparing these two states will fall into.

Is Chicago or Boston better for job opportunities?

Chicago offers a broader mix of finance, technology, manufacturing, and logistics employers with a lower cost of living than Boston. Boston/Cambridge has a more concentrated, higher-paying biotech, pharmaceutical, and higher-education cluster (Moderna, Biogen, MIT, Harvard) that can command premium salaries offsetting Massachusetts's marginally higher tax rate.
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