The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Pennsylvania VS COUNTRY B Illinois

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Pennsylvania and Illinois are both flat-tax states, but they sit at opposite ends of the flat-tax spectrum: Pennsylvania's 3.07% rate is one of the lowest in the country, while Illinois's 4.95% is the highest flat rate of any US state. At $100,000 income, Pennsylvania residents pay $2,576 in state tax versus Illinois's $4,153 — a savings of $1,577/year — and the gap grows steadily with income, reaching $2,517/year at $150K, $4,397/year at $250K, and $9,097/year at $500K. Unlike some income-tax comparisons, property tax doesn't reverse the advantage here: Pennsylvania averages roughly 1.5% of home value, while Illinois averages 1.88%, tied with New Jersey for the highest in the nation. On a $300,000 home, that's about $4,500/year in Pennsylvania versus $5,640/year in Illinois, adding another $1,140/year to Pennsylvania's side of the ledger. Illinois does offer one real counterweight for retirees: it fully exempts Social Security, pensions, and 401(k)/IRA withdrawals from state tax at any income level, matching Pennsylvania's identical exemptions — so neither state has an edge there. Illinois's high overall tax burden (income plus property) has contributed to significant outmigration, with the state losing more than 122,000 residents net to other states in recent Census data, while Pennsylvania has seen net inflows from New York and New Jersey drawn by its lower costs. For nearly every income level and homeowner scenario, Pennsylvania comes out ahead on pure tax math.
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
Pennsylvania
TAX RATE
3.07%
Flat Tax
Flat 3.07% on all income — one of the lowest flat rates in the country
🌽
COUNTRY B
Illinois
TAX RATE
4.95%
Flat Tax
Flat 4.95% on all income — the highest flat rate of any US state
TYPICAL ANNUAL DIFFERENCE
Moving from Illinois → Pennsylvania at $100,000
$1,577
That's PA saves $131/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
🔔 PA TAX
🌽 IL TAX
SAVINGS
10-YEAR
$50,000
$1,041
$1,678
PA saves $637
$6,370
$75,000
$1,808
$2,916
PA saves $1,108
$11,080
$100,000
$2,576
$4,153
PA saves $1,577
$15,770
$150,000
$4,111
$6,628
PA saves $2,517
$25,170
$250,000
$7,181
$11,578
PA saves $4,397
$43,970
$500,000
$14,856
$23,953
PA saves $9,097
$90,970
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

★ 4.8 verified reviews  ·  3,758 reviews

Moving between states means a complex multi-state tax return. Taxhub matches you with a real CPA via video call — average cost $325. Rated 4.8★ by 3,700+ clients.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Get Matched With a CPA →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🔔

Pennsylvania Pros & Cons

+ PROS
  • 3.07% flat rate is one of the lowest in the country, saving $1,577/year vs Illinois at $100K income
  • Lower property tax too — averages ~1.5% vs Illinois's 1.88% (tied for #1 highest nationally)
  • Fully exempts Social Security, pensions, and 401(k)/IRA withdrawals at any age
  • Larger combined job market across Philadelphia and Pittsburgh
− CONS
  • Philadelphia residents pay an additional 3.79% local wage tax on top of state tax
  • 6% statewide sales tax on top of income and property tax
  • Some Philadelphia-suburb counties push property tax above 1.8-2.5%
  • Slower job growth than Sun Belt states, though still ahead of Illinois's net outmigration trend
🌽

Illinois Pros & Cons

+ PROS
  • Fully exempts Social Security, pensions, and 401(k)/IRA withdrawals — identical to Pennsylvania on retirement income
  • No local income tax in Chicago (unlike NYC or Philadelphia's wage tax)
  • Affordable housing outside Chicago, with a statewide median near $230,000
  • World-class culture and finance/tech job market concentrated in Chicago
− CONS
  • 4.95% flat tax is the highest of any US state, costing $1,577/year more than Pennsylvania at $100K income
  • Property tax averages 1.88% — tied with New Jersey for highest in the nation
  • On a $300K home, property tax alone runs about $1,140/year more than in Pennsylvania
  • Net outmigration of over 122,000 residents annually, driven partly by the state's tax burden and unfunded pension liabilities
FAQ

Frequently Asked Questions

How much do I save moving from Illinois to Pennsylvania?

At $100,000 income, Pennsylvania saves $1,577/year in state income tax alone, since Illinois's flat rate is 4.95% versus Pennsylvania's 3.07%. The gap widens with income: $2,517/year at $150K, $4,397/year at $250K, and $9,097/year at $500K. Pennsylvania's lower property tax adds further savings rather than offsetting the income-tax gap, unlike some other state comparisons.

Which state has higher property tax, Pennsylvania or Illinois?

Illinois, by a meaningful margin. Illinois averages 1.88% of home value, tied with New Jersey for the highest property tax in the nation, while Pennsylvania averages roughly 1.5%. On a $300,000 home, that's about $5,640/year in Illinois versus $4,500/year in Pennsylvania — an extra $1,140/year on top of Illinois's higher income tax.

Why is Illinois's flat tax the highest in the country at 4.95%?

Illinois raised its flat tax from 3% to 5% in 2011 to address pension funding shortfalls, cut it temporarily to 3.75% in 2015, then set it permanently at 4.95% in 2017. The state's constitution requires a flat tax — voters rejected a 2020 referendum to allow progressive rates by 53.4% to 46.6% — and $139 billion in unfunded pension liabilities keeps ongoing pressure on the rate.

Does Pennsylvania or Illinois tax Social Security and retirement income?

Neither state taxes it — both are fully retirement-friendly on this point. Pennsylvania exempts Social Security, pensions, and 401(k)/IRA withdrawals at any age, and Illinois does the same. The real difference between the two states for retirees comes down to property tax, where Illinois's 1.88% average is notably higher than Pennsylvania's roughly 1.5%.

Is Philadelphia's wage tax a factor when comparing Pennsylvania to Illinois?

Yes, for Philadelphia residents. The city adds a 3.79% local wage tax on top of the 3.07% state rate, for 6.86% combined — narrower than Pennsylvania's typical advantage but still generally cheaper than Illinois's 4.95% at most income levels. Pennsylvanians outside Philadelphia, which is most of the state, pay only the 3.07% state rate and keep the full advantage.

Why has Illinois lost so many residents to other states?

Census data shows Illinois experienced net outmigration of more than 122,000 residents in the most recent reporting period, the third-largest exodus after New York and California. Contributing factors include the state's high combined income-and-property-tax burden, concerns over unfunded pension liabilities and potential future tax increases, and slower job growth compared with Sun Belt states — Florida and Texas are the two most common destinations.

Which state is better for Chicago-area vs Philadelphia-area workers?

It depends on career priorities. Chicago offers a larger finance and tech job market with no local income tax on top of the state rate, while Philadelphia workers face the added 3.79% wage tax if they live in the city. But purely on state tax math, Pennsylvania's 3.07% flat rate beats Illinois's 4.95% at every income level, and Pennsylvania's lower property tax adds to the advantage for homeowners.

Should high earners choose Pennsylvania or Illinois?

Pennsylvania wins clearly for high earners — at $500,000 income, Pennsylvania saves $9,097/year versus Illinois's 4.95% flat rate, and Pennsylvania's lower property tax adds further savings rather than offsetting the gap. Illinois's identical retirement-income exemptions don't change the calculus for high earners still working, since neither state's tax break on Social Security or pensions applies to wage income.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.