The main difference between taco soup and chili is consistency. Chili is much thicker and takes a few hours to prepare, while taco soup is thinner and is ready in a flash. I also add ranch seasoning to this soup recipe- I know it sounds like an odd inclusion, but it adds a deep savoriness and level of tangy flavor that's irresistible! Another key difference in flavor is that taco soup is seasoned with taco seasoning, while chili mainly uses chili powder.