Illinois → Indiana
How much could you save by moving from Illinois (4.95% flat) to Indiana (3.05% flat)? See the full tax comparison below.
Tax Savings by Income Level
| Income | Illinois Total Tax | Indiana Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,619 | $15,494 | Save $1,126 |
| $100,000 | $25,269 | $23,669 | Save $1,601 |
| $150,000 | $43,187 | $40,637 | Save $2,551 |
| $200,000 | $60,006 | $56,505 | Save $3,501 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $1,601/year ($133/month) in Indiana vs Illinois.
Tax structure
Illinois has a flat 5.0% state income tax, while Indiana has a flat 3.0% state income tax.
Effective rate at your income
At $100,000, Indiana's effective state rate is 2.6% vs 4.2% in Illinois — a 1.6 percentage point gap.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can exceed $6,000-$10,000 on a median-value home.
Tip: With a flat tax rate, your effective state rate is predictable and consistent. Focus tax reduction on pre-tax contributions (401k, HSA) and any state-specific deductions or credits available.
Calculate your exact savings →
Enter your income, filing status, and home value for a personalized Illinois → Indiana comparison.
Understanding Each State
Illinois
Illinois has a flat income tax rate of 4.95% on all taxable income. While the rate is moderate compared to states like California or New York, Illinois's high property taxes (average ~2.08%, second-highest nationally) significantly increase the total tax burden, particularly for homeowners.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can exceed $6,000-$10,000 on a median-value home.
Indiana
This state uses a flat income tax rate, meaning the same percentage applies to all taxable income regardless of how much you earn. This simplifies tax planning but means there is no bracket benefit for lower earners. The effective rate is very close to the headline rate after deductions.
Tip: With a flat tax rate, your effective state rate is predictable and consistent. Focus tax reduction on pre-tax contributions (401k, HSA) and any state-specific deductions or credits available.
Related Resources
Frequently asked questions
How much can I save moving from Illinois to Indiana?
At $100,000 income (single filer), you could save $1,600.75 per year in combined taxes by moving from Illinois to Indiana. The actual savings depend on your income, filing status, and whether you own property.
Do I have to file taxes in Illinois if I move to Indiana?
If you move mid-year, you may need to file a part-year resident return in Illinois and a part-year or full-year return in Indiana. Establish your new domicile (driver's license, voter registration, etc.) to clearly document the move date.
What taxes should I compare besides income tax?
Beyond state income tax, compare property tax rates, sales tax, and any special taxes (e.g., estate tax, capital gains surtax). States with no income tax often have higher property or sales taxes that partially offset the savings.