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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Illinois VS COUNTRY B Ohio

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

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
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OVERVIEW
Illinois charges a flat 4.95% state income tax with no city income tax — a rare advantage for urban residents. Ohio's state rate is now a flat 2.75% (2026, per House Bill 96), but nearly every Ohio city levies its own income tax: Columbus 2.5%, Cleveland 2.5%, Akron 2.5%. At $100,000, an Illinois resident owes ~$4,805 in state income tax; a Columbus resident owes ~$1,981 state plus ~$2,500 city tax — about $4,481 combined, still $324 less than Illinois. Rural Ohio wins decisively on income tax. The bigger hidden story is property tax: Illinois averages 1.88% effective (tied for the highest in the US, with New Jersey), while Ohio averages 1.36%. On a $300,000 home, that is $1,560 more per year in Illinois. Chicago also carries one of the highest combined sales tax rates in the country at ~10.25%. Overall: rural Ohio is the clear low-tax winner; urban Ohio still edges out Illinois once city taxes are factored in, though the gap has narrowed considerably under the 2026 reform.
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 Rate, No City Tax

Flat 4.95% on all income; $2,425 personal exemption; no city income tax

🌽
COUNTRY B
Ohio
TAX RATE
0-2.75%
Flat Low Rate + City Tax

Flat 2.75% above $26,050 (2026, per House Bill 96); $2,400 exemption; city taxes up to 3%

TYPICAL ANNUAL DIFFERENCE
Moving from Ohio → Illinois at $100,000
$2,824

That's $235/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
🌽 OH TAX
SAVINGS
10-YEAR
$75,000
$3,568
$1,294
$2,274
$22,740
$100,000
$4,805
$1,981
$2,824
$28,240
$150,000
$7,280
$3,356
$3,924
$39,240
💡

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🏙️

Illinois Pros & Cons

+ PROS
  • No city income tax — Chicago residents keep all their income at the state level
  • Social Security fully exempt
  • Flat tax is simple to calculate and plan around
  • No estate tax (repealed)
− CONS
  • 4.95% flat rate is higher than Ohio state-only rate at most incomes
  • Tied for the highest effective property tax in the US (1.88%, with New Jersey)
  • Chicago combined sales tax ~10.25% — among the highest in the nation
  • State budget instability and high pension obligations
🌽

Ohio Pros & Cons

+ PROS
  • Very low, flat state income tax — 2.75% above $26,050 (2026 flat-tax reform)
  • Groceries exempt from sales tax
  • Lower property tax than Illinois (~1.36% effective average)
  • Social Security fully exempt
− CONS
  • Nearly every Ohio city levies its own income tax (Columbus 2.5%, Cleveland 2.5%, Akron 2.5%)
  • Most extensive municipal income tax system in the US — urban residents rarely escape it
  • Combined state + city burden can match or exceed Illinois for Columbus and Akron residents
  • Property tax still high by national standards (1.36% average)
FAQ

Frequently Asked Questions

Who pays less income tax — an Illinois or Ohio resident at $100,000?

It depends where in Ohio you live. A rural Ohio resident owes about $1,981 in state income tax at $100K versus $4,805 in Illinois — Ohio wins by $2,824, thanks to the 2026 flat-tax reform (House Bill 96) that replaced Ohio's old multi-bracket system. A Columbus resident adds 2.5% city tax ($2,500), bringing their combined total to about $4,481 — still roughly $324 less than Illinois. An Akron resident (2.5% city tax) is in a similar position. Rural Ohio is the clear winner; urban Ohio still comes out ahead, though the margin is narrower.

Does Illinois have a city income tax?

No. Illinois is one of the few states where cities — including Chicago — do not levy a local income tax. This is a significant and often overlooked advantage for Illinois urban residents. Ohio, by contrast, has the most extensive city income tax system in the United States, with nearly every municipality charging between 1% and 3%.

What is the Ohio state income tax rate in 2026?

As of tax year 2026, Ohio has a single flat state income tax rate of 2.75% on income above a $26,050 zero-bracket floor, under House Bill 96 (signed June 2025). This replaced Ohio's previous multi-bracket system, which topped out at 3.5% in 2024 and 3.99% in earlier years. A $2,400 personal exemption also applies for single filers. At $100,000, the effective state rate (after the zero bracket and exemption) works out to roughly 2.0%.

Which state has higher property taxes — Illinois or Ohio?

Illinois has significantly higher property taxes. The effective average rate is 1.88% in Illinois, tied with New Jersey for the highest in the United States. Ohio averages about 1.36%. On a $300,000 home, that is roughly $5,640 per year in Illinois versus $4,080 in Ohio — a $1,560 annual difference that can easily outweigh income tax savings for homeowners.

How does the Chicago 10.25% sales tax compare to Ohio?

Chicago's combined sales tax of approximately 10.25% is among the highest in the country. Ohio's state rate is 5.75%, and combined local rates typically land between 7% and 8.25%. Groceries are exempt from Ohio sales tax entirely; Illinois taxes groceries at a reduced 1% state rate. Frequent buyers in Chicago pay noticeably more in sales tax than their Ohio counterparts.

Are Social Security benefits taxed in Illinois or Ohio?

No — both Illinois and Ohio fully exempt Social Security benefits from state income tax. Retirees in either state owe zero state income tax on their Social Security income, making both states relatively retirement-friendly on this specific measure.

At $150,000, who wins on total state income tax — Illinois or Ohio?

Rural Ohio wins decisively. An Ohio resident earning $150,000 owes approximately $3,356 in state income tax; an Illinois resident owes $7,280 — a $3,924 annual gap. A Columbus or Akron resident adds 2.5% city tax ($3,750), bringing their Ohio total to roughly $7,106, which is still about $174 below Illinois. The city tax equalizer narrows the gap further at higher incomes but no longer flips it in Illinois's favor under Ohio's 2026 flat-tax reform.

Which state is better for retirees — Illinois or Ohio?

Illinois has a notable retirement advantage: Social Security, pension income, and retirement account distributions (401k, IRA) are all fully exempt from Illinois state income tax. Ohio exempts Social Security but does tax pension and retirement account income above certain thresholds. Property tax is higher in Illinois, but income-light retirees may owe nothing to Illinois and very little to Ohio. The choice often comes down to property tax costs and local city taxes in Ohio.
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