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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A New York VS COUNTRY B Illinois

Side-by-side analysis of income tax, effective rates, and take-home pay for New York 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 with no local or city income tax anywhere in the state, including Chicago, while New York charges progressive 3.9-10.9% state rates plus NYC adds 3.078-3.876% city tax. Moving from NYC to Chicago saves $3,496/year on $100k income. Statewide property taxes differ meaningfully (NY 1.30% vs IL 1.88%, tied for highest in the US with New Jersey). Overall, Illinois offers tax savings for high earners, while NYC's low property tax (0.9% in Manhattan) benefits expensive homeowners. NYC-to-Chicago finance migration continues.
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
New York
TAX RATE
3.9-10.9%
Progressive + NYC Tax

State 3.9-10.9% + NYC 3.078-3.876%

🌆
COUNTRY B
Illinois
TAX RATE
4.95%
Flat Rate

Flat 4.95% (no local/city income tax anywhere in Illinois)

TYPICAL ANNUAL DIFFERENCE
Moving from Illinois → New York at $100,000
$3,496

That's $291/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
🗽 NY TAX
🌆 IL TAX
SAVINGS
10-YEAR
$50,000
$3,611
$2,330
$1,281
$12,810
$100,000
$8,301
$4,805
$3,496
$34,960
$200,000
$18,077
$9,755
$8,322
$83,220
$500,000
$50,033
$24,605
$25,428
$254,280
💡

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🗽

New York Pros & Cons

+ PROS
  • World-class culture: Broadway, MET, MoMA, music venues (vs Chicago)
  • Finance jobs: Wall Street highest-paying finance jobs globally
  • Diversity: Most diverse city (200+ languages, vs Chicago)
  • Public transit: NYC subway 24/7 (best in US, vs Chicago CTA)
  • Lower property tax: Manhattan 0.9% (vs Chicago 2.0-2.5%)
− CONS
  • Highest city tax: NYC 8.3% combined (state + city) at $100k, up to 14.78%
  • Very expensive: Highest cost of living in US (41% higher than Chicago)
  • Crowded: NYC metro 20M vs Chicago 9.5M (less space)
  • Harsh winters: Cold, snow, ice (similar to Chicago)
  • Rent: Manhattan $4,200/month vs Chicago $1,800/month (57% higher)
🌆

Illinois Pros & Cons

+ PROS
  • Lower income tax: 4.95% flat, no city tax (vs NYC 8.3%) saves $3,496 on $100k
  • Housing: Chicago median $350k (vs NYC $750k, 53% cheaper)
  • Cost of living: 41% cheaper than NYC overall
  • Cleaner/less crowded: Chicago 9.5M vs NYC 20M metro
  • Midwest culture: Friendlier, slower pace (vs NYC intensity)
− CONS
  • Highest property tax: 1.88% (tied for #1 in US with New Jersey, but NYC Manhattan only 0.9%)
  • Harsh winters: -10°F, snow (similar to NYC but windier)
  • Population loss: Losing residents to lower-tax states
  • Pension crisis: Underfunded state pensions threaten tax increases
  • Smaller economy: Chicago less finance jobs than Wall Street
FAQ

Frequently Asked Questions

How much will I save moving from NYC to Chicago?

On $100,000 income, Illinois saves $3,496/year in income tax (NYC 8.3% effective vs Illinois's flat 4.95%, with no Chicago city income tax). Over 10 years: $34,960. On $200,000: $8,322/year ($83,220 over 10 years). However, Chicago-area property tax is higher (Illinois 1.88% statewide vs Manhattan 0.9%), so expensive homeowners ($1M+) may see reduced savings. Renters benefit most from the move.

Are property taxes really different?

NYC Manhattan property tax is unusually low: ~0.9% effective rate (unique assessment system). Chicago/Cook County: 2.0-2.5% locally, well above Illinois's statewide average of ~1.88% (which is itself tied for the #1 highest state average in the US, with New Jersey). On a $700k home: Manhattan pays $6,300/year, Chicago pays $13,160/year—difference of $6,860/year. This can fully offset income tax savings for expensive homeowners. However, most people rent in NYC, avoiding property tax.

Is NYC to Chicago finance migration real?

Yes. Post-2020 remote work enabled NYC hedge fund traders/analysts to relocate to Chicago while keeping high salaries. Many firms have Chicago offices (CBOE, CME trading). In 2023, 18,472 people moved NY → IL (vs 9,834 IL → NY), net gain of 8,638 for Illinois. Primary drivers: lower income tax, housing affordability, remote work.

Which city has better quality of life?

NYC: World-class culture, diversity, 24/7 energy, best finance jobs. Chicago: Cleaner, more affordable (41% cheaper), great architecture/food, less crowded. Both have harsh winters, good public transit. Choose NYC for career max and culture. Choose Chicago for affordability and work-life balance.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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