Illinois vs Kentucky Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $1,206 more a year in Kentucky than in Illinois ($100 a month).
Illinois
4.95% flat state income tax
$57,880
take-home on $75,000 · $4,823/month
45th of 51 states for take-home pay
Illinois paycheck calculator ›Kentucky
3.5% flat state income tax
$59,085
take-home on $75,000 · $4,924/month
19th of 51 states for take-home pay
Kentucky paycheck calculator ›Take-home pay in Illinois and Kentucky by salary
| Salary | Illinois | Kentucky | Difference |
|---|---|---|---|
| $40,000 | $32,340 | $33,038 | $698 more in Kentucky |
| $50,000 | $39,880 | $40,723 | $843 more in Kentucky |
| $60,000 | $47,420 | $48,408 | $988 more in Kentucky |
| $75,000 | $57,880 | $59,085 | $1,206 more in Kentucky |
| $100,000 | $74,230 | $75,798 | $1,568 more in Kentucky |
| $125,000 | $90,516 | $92,446 | $1,931 more in Kentucky |
| $150,000 | $106,366 | $108,659 | $2,293 more in Kentucky |
| $200,000 | $139,027 | $142,045 | $3,018 more in Kentucky |
Single filer, standard deduction, no local tax. To match $75,000 in Illinois you would need about $73,200 in Kentucky; to match $75,000 in Kentucky you would need about $76,850 in Illinois.
How Illinois and Kentucky tax wages
| 2026 | Illinois | Kentucky |
|---|---|---|
| Income tax | a flat 4.95% income tax | a flat 3.5% income tax |
| Top rate | 4.95% | 3.5% |
| Standard deduction | None (exemptions or credits only) | $3,360 single |
| State tax on $75k | $3,713 (5.0%) | $2,507 (3.3%) |
| Local wage taxes | No | Yes (15 modeled) |
| Reciprocity | Iowa, Kentucky, Michigan, Wisconsin | Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, Wisconsin |
| 2026 change | No rate change | Kentucky cut its flat rate from 4.0% to 3.5% on January 1, 2026 after meeting its revenue triggers. |
Illinois vs Kentucky: FAQ
Does Illinois or Kentucky have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $1,206 more a year in Kentucky than in Illinois ($100 a month). Illinois has a flat 4.95% income tax for 2026. Kentucky has a flat 3.5% income tax for 2026.
What salary in Kentucky equals $75,000 in Illinois?
To take home the same $57,880 that $75,000 leaves in Illinois, you would need about $73,200 in Kentucky, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Kentucky than in Illinois?
At $150,000 the gap is $2,293 a year: $106,366 in Illinois versus $108,659 in Kentucky. With flat or no state tax, the gap grows roughly in line with salary.
Do Illinois and Kentucky have a reciprocity agreement?
Yes. If you live in one of these states and work in the other, you can usually file a nonresident exemption form with your employer so only your home state withholds income tax.
Do local taxes change the Illinois vs Kentucky comparison?
Kentucky has local wage taxes in places like Louisville (2.2% / 1.45%), Lexington (2.75% / 2.25%), Bowling Green (2%). Those are on top of the statewide figures above, so check the city calculators if you live or work in one of them.