Indiana vs Illinois: Salary After Tax Comparison (2026)
On a $75,000 salary, Indiana puts $1,500 more in your pocket each year compared to Illinois. Indiana has a state income tax (top rate 2.9%), while Illinois has a state income tax (top rate 5.0%).
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Indiana
Annual Take-Home
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Illinois
Annual Take-Home
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Pre-Computed Breakdown by Salary
Gross Salary Indiana Net Illinois Net Difference Winner
$40,000 $33,140 $32,340 $800 Indiana
$60,000 $48,620 $47,420 $1,200 Indiana
$75,000 $59,380 $57,880 $1,500 Indiana
$100,000 $76,230 $74,230 $2,000 Indiana
$125,000 $93,016 $90,516 $2,500 Indiana
$150,000 $109,366 $106,366 $3,000 Indiana
Which State Is Better for Your Salary?
Indiana wins across most income levels — workers keep more of their paycheck at every salary point tested.
Keep in mind that take-home pay is only one factor. Cost of living, housing, and local taxes also play a major role in how far your paycheck actually goes.
Net Pay Comparison — Bar Chart
State Tax Facts
Indiana
Indiana has a flat state income tax rate of 2.95% (reduced from 3.05% in 2026).
- Income Tax: Yes (top rate 2.95%)
- Standard Deduction: $0
Illinois
Illinois has a flat state income tax rate of 4.95%.
- Income Tax: Yes (top rate 4.95%)
- Standard Deduction: $0
Cost of Living Comparison
Indiana
Major city: Indianapolis
Avg 1BR rent: $950/mo
COL tier: low
Min comfortable income: $34,000/yr
Illinois
Major city: Chicago
Avg 1BR rent: $1,400/mo
COL tier: medium
Min comfortable income: $44,000/yr