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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 much lower (peaking at 3.5%), but nearly every Ohio city levies its own income tax: Columbus 2.5%, Cleveland 2.0%, Akron 2.5%. At $100,000, an Illinois resident owes ~$4,832 in state income tax; a Columbus resident owes ~$1,978 state plus ~$2,500 city tax — nearly the same total. Rural Ohio wins decisively on income tax. The bigger hidden story is property tax: Illinois averages 2.23% effective (second-highest in the US), while Ohio averages 1.53%. On a $300,000 home, that is $2,190 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 and Illinois are surprisingly competitive once city taxes are factored in.
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%–3.5%
Low State Rate + City Tax
0% up to $26,050; 2.765% to $100K; 3.5% above; $2,400 exemption; city taxes up to 3%
TYPICAL ANNUAL DIFFERENCE
Moving from Ohio → Illinois at $100,000
$2,854
That's $238/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
$3,592
$1,287
$2,305
$23,050
$100,000
$4,832
$1,978
$2,854
$28,540
$150,000
$7,305
$3,710
$3,595
$35,950
💡

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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  • No estate tax (repealed)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
  • Second-highest effective property tax in the US (~2.23%)
  • 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 state income tax — 0% up to $26,050
  • Groceries exempt from sales tax
  • Lower property tax than Illinois (~1.53% effective average)
  • Social Security fully exempt
− CONS
  • Nearly every Ohio city levies its own income tax (Columbus 2.5%, Cleveland 2%, 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 (1.53% 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 $1,978 in state income tax at $100K versus $4,832 in Illinois — Ohio wins by $2,854. But a Columbus resident adds 2.5% city tax ($2,500), bringing their total to $4,478 — nearly matching Illinois. An Akron resident (2.5% city tax) pays roughly the same as a Chicagoan. Rural Ohio is the clear winner; urban Ohio is a wash.

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?

Ohio uses three brackets in 2026: 0% on income up to $26,050; 2.765% on income from $26,050 to $100,000; and 3.5% on income above $100,000. A $2,400 personal exemption applies for single filers. At $100,000, the effective state rate is approximately 2.0% after the exemption.

Which state has higher property taxes — Illinois or Ohio?

Illinois has significantly higher property taxes. The effective average rate is approximately 2.23% in Illinois, the second-highest in the United States. Ohio averages about 1.53%. On a $300,000 home, that is roughly $6,690 per year in Illinois versus $4,590 in Ohio — a $2,100 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 $3,710 in state income tax; an Illinois resident owes $7,305 — a $3,595 annual gap. However, a Columbus or Akron resident adds 2.5% city tax ($3,750), bringing their Ohio total to roughly $7,460, which actually exceeds Illinois. The city tax equalizer becomes even more impactful at higher incomes.

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.
From the brief
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