Quick answer
New York has lower average 1BR rent ($1,783/mo vs $1,850/mo). State income tax: Illinois (4.95%) vs New York (Up to 10.9%) — on a $120K salary that's $7,140/year difference.
State Comparison · 2026
Illinois vs New York
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Illinois vs New York at a Glance
| Metric | Illinois | New York |
|---|---|---|
| Avg 1BR rent (major metros) | $1,850 | $1,783 ✓ |
| Avg median home price | $340K ✓ | $387K |
| Cheapest city | Chicago ($1,850) | Rochester ($1,050) ✓ |
| Priciest city | Chicago ($1,850) | New York ($3,200) |
| State income tax | 4.95% ✓ | Up to 10.9% |
| Avg walkability | 78/100 ✓ | 72/100 |
| Cities tracked | 1 | 3 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Illinois (4.95%).
Salary $80K
$4,760
/year saved in Illinois
Salary $120K
$7,140
/year saved in Illinois
Salary $200K
$11,900
/year saved in Illinois
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Illinois (IL)
Tax reality
Illinois has a flat 4.95% state income tax (moderate) — but property taxes are among the highest in the US, averaging 2.1% effective. On a $350K Chicago home that's $7,400/year. Combined tax burden is higher than it looks. The state's pension underfunding creates long-term fiscal risk for homeowners.
Top cities (1 tracked)
Top drawbacks
- ✕Property tax is brutal — Cook County averages 2.3% effective. On a $500K home, that's $11,500/year. Homeowners feel this every month.
- ✕Chicago winters are genuinely cold. Lake-effect snow, mid-December through March subzero streaks, and winds off Lake Michigan can make it feel -20°F. This is the biggest filter for people considering moving here.
- ✕The state fiscal situation (pension debt, budget pressures) drives ongoing policy uncertainty — property tax, sales tax, and various fees continue to drift upward.
New York (NY)
Tax reality
New York state income tax tops out at 10.9% for income over $25M. In NYC, add another 3.876% city tax — so total state+local tops 14.8% for high earners. The infamous "convenience rule" means your employer being in NY can make you owe NY tax even if you moved out of state.
Top cities (3 tracked)
Top drawbacks
- ✕Rent absorbs 40-60% of take-home for most NYC residents. Roommates are not an embarrassment — they're the norm well into your 30s for many professions.
- ✕The convenience rule — if your W-2 employer is in NY and you live elsewhere, NY often still taxes you. Consult a CPA before moving if your W-2 says NY.
- ✕Winters are genuinely cold and long. Mid-November through mid-March regularly sees subfreezing temps, salt slush, and 2-4 real snowstorms per year.
Frequently Asked Questions
Is Illinois or New York cheaper to live in?
New York has lower average 1BR rent across major metros — $1,783/mo vs $1,850/mo in Illinois, a $67/mo difference. Home prices: Illinois median is $340K vs $387K.
Illinois vs New York: which has lower state income tax?
Illinois has lower state income tax (4.95%) vs Up to 10.9% in New York. On an $80K salary that's $4,760/year in savings. On $200K, savings grow to $11,900/year.
Should I move from Illinois to New York?
Illinois has a flat 4.95% state income tax (moderate) — but property taxes are among the highest in the US, averaging 2.1% effective. On a $350K Chicago home that's $7,400/year. Combined tax burden is higher than it looks. The state's pension underfunding creates long-term fiscal risk for homeowners.
What are the best cities in Illinois vs New York?
Illinois's largest metros include Chicago. New York's largest metros include New York, Buffalo, Rochester. Cost of living varies significantly within each state — a Illinois suburb can be 40% cheaper than its flagship city, and vice versa.