Wisconsin vs Illinois Taxes
Compare the total tax burden between Wisconsin (3.5% – 7.65%) and Illinois (4.95% flat). Enter your income to see which state saves you more.
Tax at Different Income Levels
| Income | Wisconsin Total Tax | Illinois Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,440 | $16,619 | +$179 |
| $100,000 | $25,178 | $25,269 | +$92 |
| $150,000 | $43,271 | $43,187 | Save $83 |
| $200,000 | $60,264 | $60,006 | Save $258 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd pay $92/year ($8/month) more in Illinois vs Wisconsin.
Tax structure
Wisconsin uses progressive brackets up to 7.6%, while Illinois has a flat 5.0% state income tax.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
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.
Understanding Each State
Wisconsin
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
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.
Key Comparison Points
Income tax structure: Wisconsin has a progressive income tax (3.5% – 7.65%), while Illinois has a flat income tax (4.95% flat).
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA (2025+), the federal SALT cap is $40,000, phasing out above $500,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Wisconsin or Illinois?
Based on income tax alone, Wisconsin has a lower tax burden. At $100K income, you'd save $92 annually in Wisconsin compared to Illinois. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Illinois to Wisconsin?
A single filer earning $100,000 would save approximately $92 per year in total taxes by living in Wisconsin instead of Illinois. At $150,000 income, the savings change to $83 per year.
What is the income tax rate in Wisconsin?
Wisconsin has a progressive income tax with rates of 3.5% – 7.65%.
What is the income tax rate in Illinois?
Illinois has a flat income tax with rates of 4.95% flat.