Wisconsin vs Illinois: Tax & Cost Comparison

2026

Side-by-side Wisconsin vs Illinois comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Adjacent Great Lakes states — WI's progressive 3.5%-7.65% against IL's 4.95% flat. Wisconsin has more deductions but higher top rate; IL is broader-base flat with retirement exemption.

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 Wisconsin Illinois
State income tax (top rate) 7.65% (progressive) 4.95% (flat)
State sales tax 5.00% 6.25%
Avg. effective property tax 1.53% 2.07%
Minimum wage (2026) $7.25/hr $15.00/hr
State Disability Insurance (SDI) No No
Paid Family Leave No No
Median home price (Q4 2025) $305,000 $285,000
Foreclosure type judicial judicial
BEA Regional Price Parity (2024) 95 96.7
Median household income (2024) $73,330 $79,555
Median 2-bedroom rent (Q4 2025) $1,290/mo $1,500/mo

Worked example: $75,000 single filer, 2026

For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:

  • Wisconsin: estimated state income tax ≈ $4,016, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 5.00% on consumption.
  • Illinois: estimated state income tax ≈ $2,599, plus federal $7,300, FICA $5,738, sales tax 6.25% on consumption.

Property tax depends entirely on home value. On a $400,000 home: Wisconsin ≈ $$6,120/year; Illinois ≈ $$8,280/year.

Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — Wisconsin: ~$12,636; Illinois: ~$14,004.

Why this comparison? Adjacent Great Lakes states — WI's progressive 3.5%-7.65% against IL's 4.95% flat. Wisconsin has more deductions but higher top rate; IL is broader-base flat with retirement exemption.

Frequently asked questions

Which is cheaper to live in: Wisconsin or Illinois?

By BEA Regional Price Parity (2024), Wisconsin has a cost-of-living index of 95 and Illinois is 96.7 (US average = 100). Median household income: Wisconsin $73,330, Illinois $79,555. Median 2-bedroom rent: Wisconsin $1,290/mo, Illinois $1,500/mo. Wisconsin is the lower-cost state by this measure.

Does Wisconsin or Illinois have lower income tax in 2026?

Illinois has a top income-tax rate of 4.95%; Wisconsin has 7.65%. Illinois is lower at the top bracket.

What about property taxes in Wisconsin vs Illinois?

Wisconsin's average effective property tax rate is 1.53% (e.g., $6,120/year on a $400,000 home). Illinois's rate is 2.07% ($8,280/year on $400K). Wisconsin has the lower property tax burden.

Where is the minimum wage higher: Wisconsin or Illinois?

Wisconsin's 2026 minimum wage is $7.25/hour; Illinois's is $15.00/hour. Illinois is higher.