Illinois vs. Indiana
On a $75,000 salary, you keep about $1,385 more a year in Indiana. Prices are 7% higher in Illinois, so after adjusting for cost of living Indiana comes out ahead.
Last verified November 2, 2026.
| Illinois | Indiana | |
|---|---|---|
| State income tax | Has a flat income tax of 4.95% on taxable income. | Has a flat income tax of 2.95% on taxable income. |
| Minimum wage | $15.00 | $7.25 |
| Price level (U.S. = 100) | 100.0 | 93.3 |
| Employer cost on a $50,000 hire | $5,014 | $4,460 |
| SUTA wage base | $14,250 | $9,500 |
Take-home pay at the same salary
| Salary | Illinois take-home | Indiana take-home | Difference |
|---|---|---|---|
| $50,000 | $40,025 | $40,910 | $885 more in Indiana |
| $75,000 | $58,025 | $59,410 | $1,385 more in Indiana |
| $100,000 | $74,375 | $76,260 | $1,885 more in Indiana |
| $150,000 | $106,511 | $109,396 | $2,885 more in Indiana |
Single filer, standard deduction, tax year 2026. Excludes local income taxes.
Adjusted for cost of living
Using BEA regional price parities, $58,025 in Illinois buys what $58,049 buys in an average-priced state, and $59,410 in Indiana buys what $63,656 does. To keep the same buying power moving from Illinois to Indiana, a $75,000 salary would need to be about $70,026 before the tax difference.
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Frequently asked questions
- Is Illinois or Indiana better for take-home pay?
- On $75,000, you keep about $1,385 more a year in Indiana. Adjusted for prices, Indiana comes out ahead by $5,607.
- Which state is cheaper for employers, Illinois or Indiana?
- Employer taxes and insurance on a $50,000 hire are about $5,014 in Illinois and $4,460 in Indiana.