Illinois has flat 4.95% income tax (6.20% in Chicago), while New York charges progressive 4-10.9% state rates plus NYC adds 3.078-3.876% city tax. Moving from NYC to Chicago saves $3,135/year on $100k income. Property taxes are nearly identical (NY 1.72% vs IL 2.08%). Overall, Illinois offers tax savings for high earners, while NYC's low property tax (0.9% in Manhattan) benefits expensive homeowners. NYC-to-Chicago finance migration continues.

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

🗽 New York

4-10.9%

Progressive + NYC Tax

State 4-10.9% + NYC 3.078-3.876%

🌆 Illinois

4.95%

Flat Rate

Flat 4.95% (6.20% in Chicago)

Typical Annual Savings

At $100,000 income:

$3,135

That is $261/month back in your pocket!

Tax Savings by Income Level

IncomeNY TaxIL TaxSavings10-Year
$50,000 $3,540$3,100$440$4,400
$100,000 $9,335$6,200$3,135$31,350
$200,000 $19,854$12,400$7,454$74,540
$500,000 $55,476$31,000$24,476$244,760
💡

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 from New York to Illinois? Multi-state returns are tricky—NYC city tax, partial-year residency, different deadlines. Get matched with a CPA who specializes in state moves.

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

Get Matched With a CPA →

New York Pros and Cons

✅ Pros

  • World-class culture: Broadway, MET, MoMA, music venues (vs Chicago)
  • Finance jobs: Wall Street highest-paying finance jobs globally
  • Diversity: Most diverse city (200+ languages, vs Chicago)
  • Public transit: NYC subway 24/7 (best in US, vs Chicago CTA)
  • Lower property tax: Manhattan 0.9% (vs Chicago 2.0-2.5%)

❌ Cons

  • Highest city tax: NYC 9.93% combined (state + city) at $100k, up to 14.78%
  • Very expensive: Highest cost of living in US (41% higher than Chicago)
  • Crowded: NYC metro 20M vs Chicago 9.5M (less space)
  • Harsh winters: Cold, snow, ice (similar to Chicago)
  • Rent: Manhattan $4,200/month vs Chicago $1,800/month (57% higher)

Illinois Pros and Cons

✅ Pros

  • Lower income tax: 6.20% Chicago (vs NYC 9.93%) saves $3,135 on $100k
  • Housing: Chicago median $350k (vs NYC $750k, 53% cheaper)
  • Cost of living: 41% cheaper than NYC overall
  • Cleaner/less crowded: Chicago 9.5M vs NYC 20M metro
  • Midwest culture: Friendlier, slower pace (vs NYC intensity)

❌ Cons

  • Highest property tax: 2.08% (2nd in US, but NYC Manhattan only 0.9%)
  • Harsh winters: -10°F, snow (similar to NYC but windier)
  • Population loss: Losing residents to lower-tax states
  • Pension crisis: Underfunded state pensions threaten tax increases
  • Smaller economy: Chicago less finance jobs than Wall Street

Frequently Asked Questions

Q: How much will I save moving from NYC to Chicago?

On $100,000 income, Chicago saves $3,135/year in income tax (NYC 9.93% vs Chicago 6.20%). Over 10 years: $31,350. On $200,000: $7,454/year ($74,540 over 10 years). However, Chicago property tax is higher (2.08% vs Manhattan 0.9%), so expensive homeowners ($1M+) may see reduced savings. Renters benefit most from the move.

Q: Are property taxes really different?

NYC Manhattan property tax is unusually low: ~0.9% effective rate (unique assessment system). Chicago/Cook County: 2.0-2.5% (2nd highest in US). On a $700k home: Manhattan pays $6,300/year, Chicago pays $14,560/year—difference of $8,260/year. This can fully offset income tax savings for expensive homeowners. However, most people rent in NYC, avoiding property tax.

Q: Is NYC to Chicago finance migration real?

Yes. Post-2020 remote work enabled NYC hedge fund traders/analysts to relocate to Chicago while keeping high salaries. Many firms have Chicago offices (CBOE, CME trading). In 2023, 18,472 people moved NY → IL (vs 9,834 IL → NY), net gain of 8,638 for Illinois. Primary drivers: lower income tax, housing affordability, remote work.

Q: Which city has better quality of life?

NYC: World-class culture, diversity, 24/7 energy, best finance jobs. Chicago: Cleaner, more affordable (41% cheaper), great architecture/food, less crowded. Both have harsh winters, good public transit. Choose NYC for career max and culture. Choose Chicago for affordability and work-life balance.

Related Comparisons

New York vs TexasCalifornia vs IllinoisNew York CalculatorIllinois CalculatorAll State Comparisons