Illinois vs Pennsylvania Take-Home Pay Showdown
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Pennsylvania comes out ahead by approximately $1,410 annually at $75,000 income (3.07% compared to 4.95%). That said, Illinois pulls in residents attracted to stability. The choice often comes down to whether housing costs or direct tax savings matters more to your situation.
Looking at the numbers, Illinois's 4.95% rate versus Pennsylvania's 3.07% means about $1,410 difference annually on $75,000. That's the kind of gap that gets people's attention, even if other factors ultimately drive the decision.
🔑 Key Differences
- **State income tax**: Illinois at 4.95% vs Pennsylvania at 3.07%
- **Annual savings** (on $75,000): Pennsylvania saves you ~$1,410
- **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 | Pennsylvania |
|---|---|---|
| State Income Tax | 4.95% | 3.07% |
| 💰 On $40,000 Salary |
State Tax: $1,980
Take Home: $38,020
|
State Tax: $1,228
Take Home: $38,772
+$752
|
| 💰 On $60,000 Salary |
State Tax: $2,970
Take Home: $57,030
|
State Tax: $1,842
Take Home: $58,158
+$1,128
|
| 💰 On $100,000 Salary |
State Tax: $4,950
Take Home: $95,050
|
State Tax: $3,070
Take Home: $96,930
+$1,880
|
| 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. | Pennsylvania costs split dramatically. Philadelphia housing demands substantial income - median prices often exceed $300,000-400,000 in desirable areas. Pittsburgh offers better value despite renaissance. Suburbs surrounding major cities command premium pricing. Smaller cities like Allentown, Erie, and Scranton provide genuine affordability. Central Pennsylvania delivers excellent value. Property taxes run high statewide. No sales tax on clothing and groceries helps families. Overall, costs vary from expensive (Philadelphia) to affordable (central PA). |
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
Pennsylvania
✓ Advantages
- Flat 3.07% state income tax is simple and predictable
- No state tax on retirement income benefits retirees
- Strong healthcare and education sectors provide stable employment
- Pittsburgh offers urban amenities at reasonable costs
- Historical cities with cultural attractions
⚠ Considerations
- Philadelphia imposes additional 3.79% city wage tax
- Property taxes can be high in some areas
- Cold winters with significant heating costs
- Some infrastructure challenges in older cities
- Sales tax at 6% plus 1-2% in some localities
Bottom Line
On pure tax math, Pennsylvania comes out ahead by about $1,410 per year at $75,000 (3.07% versus 4.95%). Illinois makes up ground through stability, which matters considerably to many people. The right choice depends on whether you prioritize direct savings or value what Illinois offers in {factor} and overall lifestyle.📢 Share This Comparison
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