Pennsylvania vs Illinois Taxes
Compare the total tax burden between Pennsylvania (3.07% flat) and Illinois (4.95% flat). Enter your income to see which state saves you more.
| Tax Component | Pennsylvania | Illinois |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $3,070 | $4,805 |
| FICA | $7,650 | $7,650 |
| Total Tax | $23,890 | $25,625 |
| Take-Home | $76,110 | $74,375 |
| Effective Rate | 23.89% | 25.63% |
| Annual Difference | $1,735 less | $1,735 more |
The $1,735 difference is primarily because Illinois has a flat 5.0% income tax, while Pennsylvania has a flat 3.1% income tax. At your income level, Illinois's marginal rate is 5.0% vs Pennsylvania's 3.1%.
Why the difference
You'd pay $1,735/year ($145/month) more in Illinois vs Pennsylvania.
Tax structure
Pennsylvania has a flat 3.1% state income tax, while Illinois has a flat 5.0% state income tax.
Effective rate at your income
At $100,000, Pennsylvania's effective state rate is 3.1% vs 4.8% in Illinois — a 1.7 percentage point gap.
Pennsylvania local taxes
Many Pennsylvania municipalities levy an earned income tax (typically 1-3%); Philadelphia wage tax is 3.75% for residents.
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, the non-resident wage tax is 3.44%. PA's exemption of retirement income makes it attractive for retirees.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can exceed $6,000-$10,000 on a median-value home.
Pennsylvania Total Tax
$23,89023.89% effective rate
Illinois Total Tax
$25,62525.63% effective rate
Annual Savings
$1,735by living in Pennsylvania
Tax at Different Income Levels
| Income | Pennsylvania Total Tax | Illinois Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $15,710 | $16,975 | +$1,265 |
| $100,000 | $23,890 | $25,625 | +$1,735 |
| $150,000 | $40,814 | $43,489 | +$2,675 |
| $200,000 | $57,213 | $60,828 | +$3,615 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd pay $1,735/year ($145/month) more in Illinois vs Pennsylvania.
Tax structure
Pennsylvania has a flat 3.1% state income tax, while Illinois has a flat 5.0% state income tax.
Effective rate at your income
At $100,000, Pennsylvania's effective state rate is 3.1% vs 4.8% in Illinois — a 1.7 percentage point gap.
Pennsylvania local taxes
Many Pennsylvania municipalities levy an earned income tax (typically 1-3%); Philadelphia wage tax is 3.75% for residents.
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, the non-resident wage tax is 3.44%. PA's exemption of retirement income makes it attractive for retirees.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can exceed $6,000-$10,000 on a median-value home.
Understanding Each State
Pennsylvania
Pennsylvania has a flat income tax rate of 3.07% — one of the lowest flat rates in the US. Some municipalities levy an additional earned income tax (typically 1-3%), and Philadelphia residents pay a 3.75% wage tax. PA does not tax retirement income (401k, IRA, Social Security).
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, the non-resident wage tax is 3.44%. PA's exemption of retirement income makes it attractive for retirees.
Illinois
Illinois has a flat income tax rate of 4.95% on all taxable income. While the rate is moderate compared to states like California or New York, Illinois's high property taxes (average ~2.08%, second-highest nationally) significantly increase the total tax burden, particularly for homeowners.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can exceed $6,000-$10,000 on a median-value home.
Key Comparison Points
Income tax structure: Pennsylvania has a flat income tax (3.07% flat), while Illinois has a flat income tax (4.95% flat).
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Pennsylvania or Illinois?
Based on income tax alone, Pennsylvania has a lower tax burden. At $100K income, you'd save $1,735 annually in Pennsylvania compared to Illinois. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Illinois to Pennsylvania?
A single filer earning $100,000 would save approximately $1,735 per year in total taxes by living in Pennsylvania instead of Illinois. At $150,000 income, the savings change to $2,675 per year.
What is the income tax rate in Pennsylvania?
Pennsylvania has a flat income tax with rates of 3.07% flat.
What is the income tax rate in Illinois?
Illinois has a flat income tax with rates of 4.95% flat.