Illinois vs Michigan Taxes: Income, Property & Sales

Does Illinois or Michigan have lower taxes? We answer that in a variety of ways below:

Illinois vs Michigan Income Tax Comparison

	Illinois	Michigan
Income Tax Rates & Thresholds	4.95%	4.25%
Median Income	$78,020	$68,990
Income Tax Paid On Median Household Income	$13,677	$10,665
Income After Tax Based on Median Household Income	$64,343	$58,325

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Illinois vs Michigan Property Tax Comparison

	Illinois	Michigan
Average Property Tax Rate	1.78%	1.06%
Average House Price By State	$254,128	$233,019
Average Property Tax Owed Per Year	$4,523	$2,470
Income After Income Taxes & Property Taxes Based On Median State Household Income	$59,820	$55,855

Illinois vs Michigan Sales Tax Comparison

	Illinois	Michigan
Average State Sales Tax	6.25%	6.00%
Average Local Sales Tax Across the State	2.56%	0.00%
Average Combined Sales Tax Rate	8.81%	6.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,843	$3,162
Maximum Disposable Income Based on Median Household Income	$54,976	$52,693

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Illinois	Michigan
Income Tax Owed	$4,903	$4,528
After Tax Income	$35,097	$35,472
Income After Income & Property Tax	$30,574	$33,002
Maximum Disposable Income After Income, Property & Sales Taxes	$28,098	$31,134

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Illinois	Michigan
Income Tax Owed	$8,820	$8,305
After Tax Income	$51,180	$51,695
Income After Income & Property Tax	$46,657	$49,225
Maximum Disposable Income After Income, Property & Sales Taxes	$42,879	$46,439

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Illinois	Michigan
Income Tax Owed	$14,210	$13,555
After Tax Income	$65,790	$66,445
Income After Income & Property Tax	$61,267	$63,975
Maximum Disposable Income After Income, Property & Sales Taxes	$56,306	$60,354

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Illinois	Michigan
Income Tax Owed	$19,600	$18,805
After Tax Income	$80,400	$81,195
Income After Income & Property Tax	$75,877	$78,725
Maximum Disposable Income After Income, Property & Sales Taxes	$69,733	$74,269

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Illinois	Michigan
Income Tax Owed	$13,196	$12,306
After Tax Income	$86,804	$87,694
Income After Income & Property Tax	$82,281	$85,224
Maximum Disposable Income After Income, Property & Sales Taxes	$75,619	$80,400

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Illinois	Michigan
Income Tax Owed	$25,726	$24,486
After Tax Income	$124,274	$125,514
Income After Income & Property Tax	$119,751	$123,044
Maximum Disposable Income After Income, Property & Sales Taxes	$110,055	$116,079

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Illinois	Michigan
Income Tax Owed	$39,201	$37,611
After Tax Income	$160,799	$162,389
Income After Income & Property Tax	$156,276	$159,919
Maximum Disposable Income After Income, Property & Sales Taxes	$143,622	$150,867

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Illinois	Michigan
Income Tax Owed	$53,595	$51,655
After Tax Income	$196,405	$198,345
Income After Income & Property Tax	$191,882	$195,875
Maximum Disposable Income After Income, Property & Sales Taxes	$176,345	$184,788

FAQ

Does Illinois or Michigan have lower income taxes?

Illinois’s income tax falls into the following range: 4.95%

Whereas Michigan’s income tax is the following 4.25%

Does Illinois or Michigan have lower property taxes?

Illinois has an average property tax rate of 1.78%

In comparison, Michigan has an average property tax rate of 1.06%

Does Illinois or Michigan have lower sales taxes?

Illinois has a state sales tax rate of 6.25% and an average local rate of 2.56% for a combined total rate of 8.81%.

In contrast, Michigan has a state sales tax rate of 6.00% and an average local rate of 0.00% for a combined total rate of 6.00%.

Do you get to keep more money in Illinois or Michigan?

Based on median household income after income, property and sales taxes Illinois gives you a maximum amount of disposable income of $54,976

In comparison, Michigan gives you $52,693.

More Comparisons:

Illinois vs New Jersey
Illinois vs Virginia
Illinois vs Washington
Illinois vs Arizona
Illinois vs Tennessee

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/