Illinois vs Indiana: Tax & Cost Comparison
2026Side-by-side Illinois vs Indiana comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Chicago-suburban Indiana cross-border move — IL's 4.95% flat + 2.05% property tax against IN's 3.0% flat + 1% constitutional cap on owner-occupied property tax.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
| Tax / Cost Factor | Illinois | Indiana |
|---|---|---|
| State income tax (top rate) | 4.95% (flat) | 3.05% (flat) |
| State sales tax | 6.25% | 7.00% |
| Avg. effective property tax | 2.07% | 0.81% |
| Minimum wage (2026) | $15.00/hr | $7.25/hr |
| State Disability Insurance (SDI) | No | No |
| Paid Family Leave | No | No |
| Median home price (Q4 2025) | $285,000 | $240,000 |
| Foreclosure type | judicial | judicial |
| BEA Regional Price Parity (2024) | 96.7 | 91.3 |
| Median household income (2024) | $79,555 | $70,030 |
| Median 2-bedroom rent (Q4 2025) | $1,500/mo | $1,290/mo |
Worked example: $75,000 single filer, 2026
For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:
- Illinois: estimated state income tax ≈ $2,599, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 6.25% on consumption.
- Indiana: estimated state income tax ≈ $1,601, plus federal $7,300, FICA $5,738, sales tax 7.00% on consumption.
Property tax depends entirely on home value. On a $400,000 home: Illinois ≈ $$8,280/year; Indiana ≈ $$3,240/year.
Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — Illinois: ~$14,004; Indiana: ~$8,341.
Why this comparison? Chicago-suburban Indiana cross-border move — IL's 4.95% flat + 2.05% property tax against IN's 3.0% flat + 1% constitutional cap on owner-occupied property tax.
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Illinois
Frequently asked questions
Which is cheaper to live in: Illinois or Indiana?
By BEA Regional Price Parity (2024), Illinois has a cost-of-living index of 96.7 and Indiana is 91.3 (US average = 100). Median household income: Illinois $79,555, Indiana $70,030. Median 2-bedroom rent: Illinois $1,500/mo, Indiana $1,290/mo. Indiana is the lower-cost state by this measure.
Does Illinois or Indiana have lower income tax in 2026?
Indiana has a top income-tax rate of 3.05%; Illinois has 4.95%. Indiana is lower at the top bracket.
What about property taxes in Illinois vs Indiana?
Illinois's average effective property tax rate is 2.07% (e.g., $8,280/year on a $400,000 home). Indiana's rate is 0.81% ($3,240/year on $400K). Indiana has the lower property tax burden.
Where is the minimum wage higher: Illinois or Indiana?
Illinois's 2026 minimum wage is $15.00/hour; Indiana's is $7.25/hour. Illinois is higher.