Illinois vs Indiana: which really costs more?
The Chicago metro sits across this border, so the line matters to a lot of households.
Both layers pull in the same direction here. Income tax and sales tax each differ by enough to matter, so the gap builds up twice rather than once. The purchase they disagree about most is home purchase. After that it is wedding and then coffee habit. Everything below is sorted the same way, biggest gap first, so the things that barely differ sink to the bottom where they belong.
The Chicago metro straddles this border, making it one of the most practically consequential state lines in the country.
Both the income tax differential and the combined sales tax differential are material and same-signed, so the two layers compound rather than offset. Largest absolute divergence by category: home purchase. Then wedding, then coffee habit.
Illinois
- Income tax rate
- 4.95%
- On a $75,000 salary
- 4.76%
- Rank of 51
- 7
- Combined sales tax
- 8.98%
- Rank of 51
- 8
Indiana
- Income tax rate
- 2.95%
- On a $75,000 salary
- 2.91%
- Rank of 51
- 38
- Combined sales tax
- 7%
- Rank of 51
- 25
Beyond income and sales tax
Illinois charges more than twice the property tax. A home there costs 2.01% of its value a year, against 0.74% in Indiana. Illinois also taxes large estates when someone dies, above $4,000,000.00. Indiana does not. At the pump, Illinois adds 50¢ 49.6¢ of state tax to every gallon. Indiana adds 37¢.
Effective property tax rate: about 2.01% of market value in Illinois against about 0.74% in Indiana, more than a two-to-one ratio — a holding cost the income and sales tax figures above do not capture. Illinois levies a state estate tax with an exemption of $4,000,000; Indiana levies none. State gasoline excise: 50¢ 49.6¢ per gallon in Illinois, 37¢ in Indiana.
The income tax figure is what one person earning $75,000.00 pays to the state, as a share of that pay. The sales tax figure is the combined state and local rate. Both come from the same checked data the calculator uses.
Income tax is the effective state rate at $75,000 for a single filer, not a marginal rate. Sales tax is the combined state and local rate at each state's representative county where one is modeled, and a statewide average for the forty-five jurisdictions that carry no named county. Both figures come from the same verified datasets the calculator uses.
Illinois against Indiana
A $75,000 salary
| Measure | Illinois | Indiana |
|---|---|---|
| Take-home pay | $58,025 | $59,410 |
| Worth after local prices | $58,697 | $64,447 |
| Share of pay taxed | 22.63% | 20.79% |
| State sales tax | 6.25% | 7% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | No | No |
| Property tax rate | 2.01% | 0.74% |
| Price level | 98.9 | 92.2 |
| Housing prices | 92.4 | 71.4 |
| Fuel tax | 49.6¢ | 37¢ |
| Tobacco tax | $2.98 | $3.00 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Illinois, Statewide average; Indiana, Statewide average. Clothing: one $100 item; higher prices can change tax.
Where each state is strong
A $75,000 salary
Further out is better on every axis. Axes use fixed national ranges, not the two states alone.
Where each state takes it
A $75,000 salary
- Income
- Sales
- Property
| Tax | Illinois | Indiana |
|---|---|---|
| Income, all levels | $16,975 | $15,591 |
| Sales, on that spending | $1,088 | $1,248 |
| Property, on that home | $4,024 | $1,479 |
Assumes 30% of take-home spent on taxable goods and a $200,000 home. Three bases, so never summed.
What gets taxed, in each
A $75,000 salary
Illinois
Statewide average
Indiana
Statewide average
- Sales tax
- Fuel
- Tobacco
| Category | Illinois | Indiana |
|---|---|---|
| Groceries | Exempt | Exempt |
| Clothing at $100 | 8.98% | 7% |
| Fuel | 49.6¢ | 37¢ |
| Tobacco | $2.98 | $3.00 |
Grocery and general rates use the locations named here. Clothing is one item priced at $100; a more expensive garment may be taxed differently. Fuel and tobacco have separate units and scales.
What you would need there
A $75,000 salary
| To match take-home only | $72,946 |
|---|---|
| You could take a cut of | −$7,864 |
| Prices in Indiana | 92 vs 99 |
State taxes and state price levels only. No city tax, and no housing market.
What things actually cost in each
These are the amounts you would need to earn before tax to pay for each thing, at a $75,000.00 salary. Biggest gaps first.
Gross income required at $75,000, using each category's default assumptions, sorted by the absolute difference between the two states.
| Category | Illinois | Indiana | Difference |
|---|---|---|---|
| Home purchase | $1,342,439 | $1,176,651 | $165,788 cheaper in Indiana |
| Wedding | $50,091 | $47,651 | $2,440 cheaper in Indiana |
| Coffee habit | $27,403 | $26,107 | $1,296 cheaper in Indiana |
| Used car from a private seller | $19,996 | $19,050 | $946 cheaper in Indiana |
| Car payment or lease | $17,780 | $17,252 | $528 cheaper in Indiana |
| Funeral | $12,232 | $11,869 | $363 cheaper in Indiana |
| Phone plan | $10,536 | $10,223 | $313 cheaper in Indiana |
| Jewelry | $5,832 | $5,556 | $276 cheaper in Indiana |
| Pet annual cost | $2,580 | $2,458 | $122 cheaper in Indiana |
| Furniture | $2,500 | $2,381 | $118 cheaper in Indiana |
| Laptop or phone purchase | $2,000 | $1,905 | $95 cheaper in Indiana |
| Major appliance | $1,833 | $1,746 | $87 cheaper in Indiana |
| Rent | $2,752 | $2,671 | $82 cheaper in Indiana |
| Sofa bed | $1,666 | $1,588 | $79 cheaper in Indiana |
| Mattress | $1,500 | $1,429 | $71 cheaper in Indiana |
| Winter tires | $1,500 | $1,429 | $71 cheaper in Indiana |
| Tires | $1,333 | $1,270 | $63 cheaper in Indiana |
| Bicycle | $1,166 | $1,111 | $55 cheaper in Indiana |
| Espresso machine | $1,166 | $1,111 | $55 cheaper in Indiana |
| Childcare | $1,682 | $1,632 | $50 cheaper in Indiana |
| Office chair | $1,000 | $953 | $47 cheaper in Indiana |
| Air conditioner | $833 | $794 | $39 cheaper in Indiana |
| Back-to-school clothes | $833 | $794 | $39 cheaper in Indiana |
| Games console | $833 | $794 | $39 cheaper in Indiana |
| Theme park day | $846 | $807 | $39 cheaper in Indiana |
| Lawn mower | $750 | $714 | $35 cheaper in Indiana |
| Camping gear | $708 | $675 | $34 cheaper in Indiana |
| Hotel stay | $1,070 | $1,038 | $32 cheaper in Indiana |
| Power tools | $667 | $635 | $32 cheaper in Indiana |
| Suit | $667 | $635 | $32 cheaper in Indiana |
| School uniform | $600 | $572 | $28 cheaper in Indiana |
| Vacuum cleaner | $583 | $556 | $28 cheaper in Indiana |
| Cookware | $500 | $476 | $24 cheaper in Indiana |
| Running shoes | $433 | $413 | $20 cheaper in Indiana |
| Health insurance premium | $688 | $668 | $20 cheaper in Indiana |
| Luggage | $417 | $397 | $20 cheaper in Indiana |
| Gift card | $612 | $593 | $18 cheaper in Indiana |
| Student loan payment | $612 | $593 | $18 cheaper in Indiana |
| Work uniform | $367 | $349 | $17 cheaper in Indiana |
| Vet visit | $550 | $534 | $16 cheaper in Indiana |
| Winter coat | $333 | $318 | $16 cheaper in Indiana |
| Domestic flight | $501 | $486 | $15 cheaper in Indiana |
| School supplies | $300 | $286 | $14 cheaper in Indiana |
| Meal kit | $367 | $356 | $11 cheaper in Indiana |
| Rental car | $417 | $428 | $11 cheaper in Illinois |
| Concert ticket | $227 | $217 | $10 cheaper in Indiana |
| Utilities | $321 | $312 | $9.53 cheaper in Indiana |
| Clothing | $200 | $191 | $9.47 cheaper in Indiana |
| Weekly groceries | $268 | $260 | $7.95 cheaper in Indiana |
| Restaurant dinner | $160 | $152 | $7.56 cheaper in Indiana |
| Car insurance | $252 | $245 | $7.48 cheaper in Indiana |
| Costume | $150 | $143 | $7.10 cheaper in Indiana |
| Swimwear | $142 | $135 | $6.68 cheaper in Indiana |
| Grocery delivery | $217 | $211 | $6.46 cheaper in Indiana |
| Storage unit | $199 | $193 | $5.89 cheaper in Indiana |
| Birthday cake | $184 | $178 | $5.46 cheaper in Indiana |
| Pet food | $100 | $95 | $4.73 cheaper in Indiana |
| Baby clothes | $92 | $87 | $4.33 cheaper in Indiana |
| Sunscreen | $92 | $87 | $4.33 cheaper in Indiana |
| First aid supplies | $75 | $71 | $3.54 cheaper in Indiana |
| Gym membership | $75 | $71 | $3.54 cheaper in Indiana |
| Streaming bundle | $75 | $71 | $3.54 cheaper in Indiana |
| Cannabis (legal states) | $108 | $105 | $3.22 cheaper in Indiana |
| Internet service | $107 | $104 | $3.18 cheaper in Indiana |
| Toiletries | $67 | $64 | $3.15 cheaper in Indiana |
| Vitamins and supplements | $58 | $56 | $2.77 cheaper in Indiana |
| Pizza delivery | $62 | $59 | $2.66 cheaper in Indiana |
| Deli sandwich | $55 | $52 | $2.59 cheaper in Indiana |
| Food delivery | $59 | $57 | $2.40 cheaper in Indiana |
| Books | $50 | $48 | $2.38 cheaper in Indiana |
| Cinema ticket | $49 | $47 | $2.30 cheaper in Indiana |
| Baby formula | $69 | $67 | $2.05 cheaper in Indiana |
| Gas fill-up | $69 | $67 | $2.05 cheaper in Indiana |
| Prescription refill | $47 | $45 | $2 cheaper in Indiana |
| Haircut | $64 | $62 | $1.91 cheaper in Indiana |
| Soft drinks | $40 | $38 | $1.91 cheaper in Indiana |
| Dry cleaning | $61 | $59 | $1.83 cheaper in Indiana |
| Over-the-counter medicine | $25 | $24 | $1.18 cheaper in Indiana |
| Energy drinks | $23 | $22 | $1.11 cheaper in Indiana |
| Coffee beans | $37 | $36 | $1.08 cheaper in Indiana |
| Frozen meals | $34 | $33 | $1.02 cheaper in Indiana |
| Rideshare trip | $34 | $33 | $1.02 cheaper in Indiana |
| Candy | $20 | $19 | $0.95 cheaper in Indiana |
| Fast food meal | $20 | $19 | $0.95 cheaper in Indiana |
| Bar drink | $18 | $17 | $0.85 cheaper in Indiana |
| Cigarettes or vape | $15 | $14 | $0.72 cheaper in Indiana |
| Bread and bakery | $21 | $21 | $0.64 cheaper in Indiana |
| Snack food | $18 | $18 | $0.55 cheaper in Indiana |
| Bottled water | $15 | $15 | $0.45 cheaper in Indiana |
| Bottled juice | $14 | $13 | $0.42 cheaper in Indiana |
Across the 90 things we can price in both states, Indiana comes out cheaper more often. That is not the whole story. Housing, wages and property tax move far more than sales tax does, and none of them are in these numbers. See limitations.
Across the 90 categories computable in both states, Indiana is cheaper more often. ⚠️ This compares tax treatment alone: housing costs, prevailing wages and property tax vary far more between states than sales tax does, and none of them enter these figures. See limitations.
Questions people ask
Both of these tax income — so what actually separates them?
Degree rather than kind, which makes this a harder comparison than it looks. The effective income rates differ by about 1.85% here, and structure differs beyond that — where the brackets start, what is deducted first, and whether the schedule widens for a couple.
Do the different taxes point the same way for this pair?
Here they do, which makes this an unusually clean comparison. One state charges more on both counts rather than trading one against the other — so the answer holds for most households instead of flipping depending on how much you spend.
How much would moving between these two actually change?
A real amount, and it varies by household. One of the two levies differs substantially here, so a personal figure beats a general one.
On what dimensions do two income-taxing states diverge?
Both states levy personal income tax, so divergence is in rate and structure rather than in existence. Effective rates differ by about 1.85% at this project's representative income; bracket thresholds, deduction levels and joint-filing treatment vary independently and can reverse the ordering at other income levels.
Do the levies rank these states consistently?
Both levies rank these states in the same direction, so the burden ordering is stable across consumption patterns rather than reversing at some spending share. ⚠️ Property tax is levied independently and is not included in that consistency; it can still reverse the total for a homeowner.
How material is this differential?
At least one levy differs materially between these states. Aggregate effect is income- and consumption-dependent and should be computed for the specific household rather than inferred from headline rates; the ordering can still reverse once property tax is included.