1Indiana
Lowest20.8%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $2,183
- Payroll tax (FICA)
- $5,738
- Total tax
- $15,591
- Net income (annual)
- $59,410
Tax year 2026 · state vs state
Illinois vs Indiana Income Tax Comparison (2026)
On a $75,000 salary (single filer, 2026), you pay $1,385 less state income tax a year in Indiana than in Illinois, which is about $115 a month. At $150,000 the gap is $2,885 in favor of Indiana.
Illinois: 4.95% flatIndiana: 2.95% flatUpdated October 10, 2026
Compare Illinois and Indiana for your income
Estimate for education only, not tax advice. 2026 federal and state rules, standard deductions, no local taxes. How we calculate.
State comparison
Comparing 2 states, sorted by lowest overall tax rate.
2Illinois
22.6%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $3,568
- Payroll tax (FICA)
- $5,738
- Total tax
- $16,975
- Net income (annual)
- $58,025
Advanced analysis (optional)
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💰 Monthly breakdown
Your take-home pay, spread across the year
Indiana
Monthly gross$6,250
Monthly tax$1,299
Monthly take-home$4,951
Illinois
Monthly gross$6,250
Monthly tax$1,415
Monthly take-home$4,835
Estimates use 2026 federal and state rates, the standard deduction for your filing status and no local taxes. Rankings use state income tax only.
Illinois vs Indiana: how the two systems differ
| Illinois | Indiana | |
|---|---|---|
| Wage income tax | Flat 4.95% | Flat 2.95% |
| Top rate | 4.95% | 2.95% |
| Lowest rate | 4.95% | 2.95% |
| Deductions and credits (single) | $2,925 personal exemption | $1,000 personal exemption |
State income tax and take-home pay at every salary
The same salary can leave you with different take-home pay depending on the state. This table applies each state’s 2026 rules to a single filer with no pre-tax contributions.
| Income | IL state tax | IN state tax | Difference | IL take-home | IN take-home |
|---|---|---|---|---|---|
| $30,000 | $1,340 | $856 | $485 less in Indiana | $24,945 | $25,430 |
| $40,000 | $1,835 | $1,151 | $685 less in Indiana | $32,485 | $33,170 |
| $50,000 | $2,330 | $1,446 | $885 less in Indiana | $40,025 | $40,910 |
| $60,000 | $2,825 | $1,741 | $1,085 less in Indiana | $47,565 | $48,650 |
| $75,000 | $3,568 | $2,183 | $1,385 less in Indiana | $58,025 | $59,410 |
| $100,000 | $4,805 | $2,921 | $1,885 less in Indiana | $74,375 | $76,260 |
| $150,000 | $7,280 | $4,396 | $2,885 less in Indiana | $106,511 | $109,396 |
| $250,000 | $12,230 | $7,346 | $4,885 less in Indiana | $170,952 | $175,837 |
Single filer, 2026, federal standard deduction. Take-home is after federal, state and payroll tax. No local taxes.
Married filing jointly
| Income | IL state tax | IN state tax | Difference | IL take-home | IN take-home |
|---|---|---|---|---|---|
| $75,000 | $3,423 | $2,154 | $1,269 less in Indiana | $61,200 | $62,469 |
| $100,000 | $4,660 | $2,891 | $1,769 less in Indiana | $80,050 | $81,819 |
| $150,000 | $7,135 | $4,366 | $2,769 less in Indiana | $116,050 | $118,819 |
| $250,000 | $12,085 | $7,316 | $4,769 less in Indiana | $185,383 | $190,152 |
Married filing jointly, 2026, federal standard deduction. Uses each state's joint brackets where they differ.
Does the lower-tax state change as income rises?
Across every income from $10,000 to $1,000,000 that we tested, Indiana charges the same or less state income tax than Illinois for a single filer, so there is no income level where the ranking flips.
Rates side by side
Illinois (single filers)
| 4.95% | Over $0 |
Indiana (single filers)
| 2.95% | Over $0 |
- Indiana: Indiana counties also levy a local income tax, typically between 0.5% and 3%, which is not included here.
Full details for each state: Illinois income tax calculator and Indiana income tax calculator. Federal rates are on the 2026 federal tax brackets page.
Illinois vs Indiana FAQ
Which has lower income tax, Illinois or Indiana?+
Indiana is lower at $75,000: $2,183 of state income tax versus $3,568 in Illinois. At $150,000 it is $7,280 in Illinois and $4,396 in Indiana. Across every income from $10,000 to $1,000,000 that we tested, Indiana charges the same or less state income tax than Illinois for a single filer, so there is no income level where the ranking flips.
How much more do I keep on $100,000 in Illinois versus Indiana?+
A single filer keeping $74,375 a year in Illinois would keep $76,260 in Indiana after federal, state and payroll tax. The difference is $1,885 a year, or $157 a month.
How do the Illinois and Indiana income tax systems differ?+
Illinois uses a flat 4.95% rate; Indiana uses a flat 2.95% rate.
Are local taxes included in this Illinois vs Indiana comparison?+
No. It covers federal income tax, Social Security, Medicare and state income tax only. City, county, sales and property taxes are not included, and they can change the real cost of living in each state.
Should I move from Illinois to Indiana to save on taxes?+
State income tax is one cost among many. Property and sales taxes, housing, insurance and wages also differ, and you may owe tax to both states in the year you move. Use this comparison as one input and confirm details with a tax professional.
Sources
- Tax Foundation: 2026 state individual income tax rates and brackets
- IRS: Tax inflation adjustments for tax year 2026
Last checked October 10, 2026. Confirm with your state tax agency before filing.
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Estimates for education only, not tax, legal or financial advice. Not a substitute for a tax professional or your state revenue department.