Illinois has a flat 4.95% income tax, while California charges progressive rates from 1% to 13.3%. Moving from CA to IL saves $8,350/year on $100k income (IL's flat rate vs CA's ~9.3% effective). However, Illinois has much higher property taxes (2.08% vs CA 0.73%). Overall, Illinois offers tax savings for high earners, while California is competitive for expensive homeowners. Migration is relatively balanced.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🌴 California

1-13.3%

Progressive

9 brackets, up to 13.3%

🌆 Illinois

4.95%

Flat Rate

Flat 4.95% on all income

Typical Annual Savings

At $100,000 income:

$8,350

That is $696/month back in your pocket!

Tax Savings by Income Level

IncomeCA TaxIL TaxSavings10-Year
$50,000 $1,250$2,475-$1,225-$12,250
$100,000 $9,300$4,950$4,350$43,500
$200,000 $17,800$9,900$7,900$79,000
$500,000 $47,650$24,750$22,900$229,000
💡

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California Pros and Cons

✅ Pros

  • Lower property tax: 0.73% (Prop 13 protects homeowners vs IL's 2.08%)
  • Tech salaries: Silicon Valley/SF highest in US ($250k-$500k+ total comp)
  • Perfect weather: Year-round sunshine, 280 sunny days (vs IL harsh winters)
  • World-class universities: Stanford, Berkeley, Caltech, UCLA
  • Better for low earners: Progressive system (1-4% on first $40k)

❌ Cons

  • Highest income tax: 13.3% top rate, ~9.3% effective at $100k
  • Housing crisis: Median home $750k+ (SF $1.5M), rent $2,500-4,000/month
  • SALT cap: Limited state tax deduction hurts high earners
  • Traffic: LA/SF commutes average 30-60 minutes daily
  • High cost of living: 40% more expensive than Illinois

Illinois Pros and Cons

✅ Pros

  • Lower income tax: 4.95% flat (vs CA's ~9.3% at $100k, 13.3% at top)
  • Housing affordability: Chicago median home $350k (vs SF $1.5M, LA $900k)
  • Cost of living: 40% cheaper than California overall
  • Chicago culture: World-class architecture, museums, food scene
  • Public transit: CTA/Metra 2nd best in US (after NYC)

❌ Cons

  • Highest property tax: 2.08% (2nd in US) costs $3,375-$13,500 more/year
  • Harsh winters: -10°F, snow, ice (vs CA year-round sunshine)
  • Population loss: Losing residents to lower-tax states
  • Pension crisis: Underfunded state pensions threaten future tax increases
  • Higher for low earners: 4.95% flat hurts those earning <$70k

Frequently Asked Questions

Q: How much will I save moving from California to Illinois?

It depends on income level. At $100,000 income, Illinois saves $4,350/year (CA ~9.3% effective vs IL 4.95%). At $500,000 income: IL saves $22,900/year. However, low earners (<$70k) pay more in IL due to flat rate. Property taxes favor CA dramatically—on a $1M home, CA pays $7,300/year vs IL $20,800/year (difference of $13,500/year).

Q: Why is Illinois property tax so high?

Illinois has 2nd highest property tax in US (2.08%) because it relies on property taxes to fund schools, municipalities, and massive public pension obligations. Chicago/Cook County rates are 2.0-2.5%. Illinois has one of worst-funded pension systems in US, driving up property taxes. California's Prop 13 caps property tax at 1% of purchase price + 2%/year increases.

Q: Which state is better for tech workers?

California wins for tech workers: Silicon Valley/SF offer highest salaries in world ($250k-$500k+ total comp for senior engineers), best career growth, stock options worth millions. However, Chicago has growing tech scene with much lower cost of living (40% cheaper) and lower income tax (4.95% vs CA 9.3-13.3%). Choose CA for career max, IL for cost savings.

Q: Is California or Illinois better for homeowners?

California strongly favors homeowners due to Prop 13. On a $1M home: CA pays $7,300/year property tax (capped), IL pays $20,800/year (difference of $13,500/year). This can fully offset IL's income tax advantage for expensive homeowners. However, CA home prices are 68% higher, so total housing costs still favor IL.

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