Illinois vs Indiana Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $1,385 more a year in Indiana than in Illinois ($115 a month).
Illinois
4.95% flat state income tax
$58,024
take-home on $75,000 · $4,835/month
46th of 51 states for take-home pay
Illinois paycheck calculator ›Indiana
2.95% flat state income tax
$59,409
take-home on $75,000 · $4,951/month
14th of 51 states for take-home pay
Indiana paycheck calculator ›Take-home pay in Illinois and Indiana by salary
| Salary | Illinois | Indiana | Difference |
|---|---|---|---|
| $40,000 | $32,485 | $33,169 | $684 more in Indiana |
| $50,000 | $40,025 | $40,909 | $884 more in Indiana |
| $60,000 | $47,565 | $48,649 | $1,084 more in Indiana |
| $75,000 | $58,024 | $59,409 | $1,385 more in Indiana |
| $100,000 | $74,375 | $76,259 | $1,884 more in Indiana |
| $125,000 | $90,661 | $93,045 | $2,385 more in Indiana |
| $150,000 | $106,511 | $109,395 | $2,884 more in Indiana |
| $200,000 | $139,172 | $143,056 | $3,884 more in Indiana |
Single filer, standard deduction, no local tax. To match $75,000 in Illinois you would need about $72,950 in Indiana; to match $75,000 in Indiana you would need about $77,100 in Illinois.
How Illinois and Indiana tax wages
| 2026 | Illinois | Indiana |
|---|---|---|
| Income tax | a flat 4.95% income tax | a flat 2.95% income tax |
| Top rate | 4.95% | 2.95% |
| Standard deduction | None (exemptions or credits only) | None (exemptions or credits only) |
| State tax on $75k | $3,568 (4.8%) | $2,183 (2.9%) |
| Local wage taxes | No | Yes (11 modeled) |
| Reciprocity | Iowa, Kentucky, Michigan, Wisconsin | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin |
| 2026 change | No rate change | Indiana cut its flat rate from 3.0% to 2.95% on January 1, 2026, with 2.9% scheduled for 2027. |
Moving between Illinois and Indiana
Moving from Illinois to Indiana
Moving to Indiana from Illinois or Michigan generally lowers your state income tax, since the 2.95% flat rate applies after only a $1,000 exemption. Budget for the county tax too: among the larger counties, rates run from 1.25% in Vanderburgh County (Evansville) to 2.25% in Madison County (Anderson), so the same salary can cost several hundred dollars more depending on where you rent. Hammond and Gary, on the Chicago side of the state, sit in Lake County at 1.5%.
Moving from Indiana to Illinois
Moving to Illinois from any neighbor raises state tax for a middle-income worker: $1,385 a year compared with Indiana and $624 compared with Wisconsin at $75,000. There is no city income tax, though Chicago's sales and property taxes are high. File an IL-W-4 with your employer and a part-year Illinois return for the year you arrive.
Illinois paychecks in brief
Illinois taxes wages at a flat 4.95% with no standard deduction, only a $2,925 personal exemption for each filer. That makes the effective rate high even for modest earners. A single filer earning $75,000 owes $3,568 to Illinois and keeps $58,024 a year, or $2,232 every two weeks. No Illinois city, including Chicago, taxes wages, and residents of Iowa, Kentucky, Michigan, and Wisconsin who work in Illinois pay only their home state. Read the Illinois guide.
Indiana paychecks in brief
Indiana taxes wages at a flat 2.95% in 2026, down from 3.0% last year, after a $1,000 personal exemption. A single filer earning $75,000 owes $2,183 in state income tax and takes home $59,409, or $2,285 every two weeks. What sets Indiana apart is the county income tax every county levies on top: 2.02% in Marion County (Indianapolis) costs another $1,495 at the same salary, and your county is fixed by where you lived on January 1. Read the Indiana guide.
Illinois vs Indiana: FAQ
Does Illinois or Indiana have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $1,385 more a year in Indiana than in Illinois ($115 a month). Illinois has a flat 4.95% income tax for 2026. Indiana has a flat 2.95% income tax for 2026.
What salary in Indiana equals $75,000 in Illinois?
To take home the same $58,024 that $75,000 leaves in Illinois, you would need about $72,950 in Indiana, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Indiana than in Illinois?
At $150,000 the gap is $2,884 a year: $106,511 in Illinois versus $109,395 in Indiana. With flat or no state tax, the gap grows roughly in line with salary.
What if I live in Illinois and work in Indiana?
Illinois and Indiana do not have a reciprocity agreement, so Indiana withholds tax on wages earned there and Illinois generally gives residents a credit for tax paid to the other state. You effectively pay the higher of the two rates.
Do local taxes change the Illinois vs Indiana comparison?
Indiana has local wage taxes in places like Indianapolis (2.02% (Marion County)), Fort Wayne (1.59% (Allen County)), Evansville (1.25% (Vanderburgh County)). Those are on top of the statewide figures above, so check the city calculators if you live or work in one of them.