Illinois vs New York: Paycheck Calculator Comparison
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 At $100,000, the difference between Illinois's 4.95% and New York's 8.82% comes to roughly $3,870 per year. New York makes up ground with career opportunities, which draws considerable interest from urban enthusiasts. While urban professionals tend to favor Illinois for the tax break, the decision hinges on how much weight you put on housing costs.
Illinois charges 4.95% while New York sits at 8.82%. For $100,000 earners, that difference translates to approximately $3,870 per year. It's a meaningful gap, though hardly the only consideration in a state-to-state comparison.
🔑 Key Differences
- **State income tax**: Illinois at 4.95% vs New York at 8.82%
- **Annual savings** (on $100,000): Illinois saves you ~$3,870
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Illinois | New York |
|---|---|---|
| State Income Tax | 4.95% | 4% - 8.82% |
| 💰 On $40,000 Salary |
State Tax: $1,980
Take Home: $38,020
+$584
|
State Tax: $2,564
Take Home: $37,436
|
| 💰 On $60,000 Salary |
State Tax: $2,970
Take Home: $57,030
+$876
|
State Tax: $3,846
Take Home: $56,154
|
| 💰 On $100,000 Salary |
State Tax: $4,950
Take Home: $95,050
+$1,460
|
State Tax: $6,410
Take Home: $93,590
|
| Cost of Living | Illinois costs split dramatically between Chicago and downstate. Chicago proper commands high prices - rent for decent apartments often runs $1,500-2,500, with home prices in desirable neighborhoods exceeding $400,000. Suburbs provide more moderate housing but property taxes can reach $8,000-12,000 annually even for modest homes. Downstate cities like Springfield, Champaign, and Rockford offer genuine Midwest affordability with housing costs 40-60% below Chicago levels. Sales tax reaches 10.25% in Chicago, among the nation's highest. Utilities cost more during brutal winters. The cost division means identical salaries deliver vastly different lifestyles depending on location within Illinois. | New York City ranks among the world's most expensive cities. Manhattan rent for one-bedroom apartments often exceeds $3,000 monthly, with outer boroughs requiring $2,000-2,500. Home purchases in desirable areas frequently surpass $1 million. Property taxes substantial. Sales tax reaches 8.875% in NYC. Dining, services, and general expenses all elevated. Upstate New York offers dramatically better value - Buffalo, Rochester, and Syracuse maintain housing costs 60-70% below NYC levels. |
Pros & Cons
Illinois
✓ Advantages
- Flat 4.95% state income tax is simple and predictable
- Strong job market in Chicago across multiple industries
- Central US location provides excellent transportation access
- Downstate areas offer affordable cost of living
- Major universities and research institutions
⚠ Considerations
- Property taxes among highest nationally, especially near Chicago
- State faces significant financial challenges
- Sales tax reaches 10.25% in Chicago
- Cold winters with substantial heating costs
- Chicago's high costs offset lower expenses elsewhere
New York
✓ Advantages
- Unmatched career opportunities in finance, media, and technology
- World-class public transportation in NYC reduces car costs
- Cultural amenities and entertainment unavailable elsewhere
- Strong worker protections and employment rights
- Healthcare and education systems among nation's best
⚠ Considerations
- Combined state and city income taxes can reach 14% or higher
- Extremely high housing costs especially in NYC
- Property taxes among highest in America
- Sales tax reaches 8.875% in New York City
- High costs extend beyond rent to groceries and services
Bottom Line
Illinois saves you roughly $3,870 annually at $100,000, which adds up over time. New York keeps drawing people despite the tax premium, largely due to career opportunities. You'll find urban professionals gravitating toward Illinois, while urban enthusiasts often decide New York's advantages justify the cost.📢 Share This Comparison
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