Illinois vs Indiana Taxes: Income, Property & Sales

Does Illinois or Indiana have lower taxes? We answer that in a variety of ways below:

Illinois vs Indiana Income Tax Comparison

	Illinois	Indiana
Income Tax Rates & Thresholds	4.95%	3.23%
Median Income	$78,020	$70,030
Income Tax Paid On Median Household Income	$13,677	$10,404
Income After Tax Based on Median Household Income	$64,343	$59,626

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Illinois vs Indiana Property Tax Comparison

	Illinois	Indiana
Average Property Tax Rate	1.78%	0.74%
Average House Price By State	$254,128	$232,390
Average Property Tax Owed Per Year	$4,523	$1,720
Income After Income Taxes & Property Taxes Based On Median State Household Income	$59,820	$57,906

Illinois vs Indiana Sales Tax Comparison

	Illinois	Indiana
Average State Sales Tax	6.25%	7.00%
Average Local Sales Tax Across the State	2.56%	0.00%
Average Combined Sales Tax Rate	8.81%	7.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,843	$3,788
Maximum Disposable Income Based on Median Household Income	$54,976	$54,118

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Illinois	Indiana
Income Tax Owed	$4,903	$4,300
After Tax Income	$35,097	$35,700
Income After Income & Property Tax	$30,574	$33,980
Maximum Disposable Income After Income, Property & Sales Taxes	$28,098	$31,757

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Illinois	Indiana
Income Tax Owed	$8,820	$7,873
After Tax Income	$51,180	$52,127
Income After Income & Property Tax	$46,657	$50,407
Maximum Disposable Income After Income, Property & Sales Taxes	$42,879	$47,110

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Illinois	Indiana
Income Tax Owed	$14,210	$12,919
After Tax Income	$65,790	$67,081
Income After Income & Property Tax	$61,267	$65,361
Maximum Disposable Income After Income, Property & Sales Taxes	$56,306	$61,085

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Illinois	Indiana
Income Tax Owed	$19,600	$17,965
After Tax Income	$80,400	$82,035
Income After Income & Property Tax	$75,877	$80,315
Maximum Disposable Income After Income, Property & Sales Taxes	$69,733	$75,061

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Illinois	Indiana
Income Tax Owed	$13,196	$11,646
After Tax Income	$86,804	$88,354
Income After Income & Property Tax	$82,281	$86,634
Maximum Disposable Income After Income, Property & Sales Taxes	$75,619	$80,967

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Illinois	Indiana
Income Tax Owed	$25,726	$23,316
After Tax Income	$124,274	$126,684
Income After Income & Property Tax	$119,751	$124,964
Maximum Disposable Income After Income, Property & Sales Taxes	$110,055	$116,789

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Illinois	Indiana
Income Tax Owed	$39,201	$35,931
After Tax Income	$160,799	$164,069
Income After Income & Property Tax	$156,276	$162,349
Maximum Disposable Income After Income, Property & Sales Taxes	$143,622	$151,728

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Illinois	Indiana
Income Tax Owed	$53,595	$49,465
After Tax Income	$196,405	$200,535
Income After Income & Property Tax	$191,882	$198,815
Maximum Disposable Income After Income, Property & Sales Taxes	$176,345	$185,809

FAQ

Does Illinois or Indiana have lower income taxes?

Illinois’s income tax falls into the following range: 4.95%

Whereas Indiana’s income tax is the following 3.23%

Does Illinois or Indiana have lower property taxes?

Illinois has an average property tax rate of 1.78%

In comparison, Indiana has an average property tax rate of 0.74%

Does Illinois or Indiana have lower sales taxes?

Illinois has a state sales tax rate of 6.25% and an average local rate of 2.56% for a combined total rate of 8.81%.

In contrast, Indiana has a state sales tax rate of 7.00% and an average local rate of 0.00% for a combined total rate of 7.00%.

Do you get to keep more money in Illinois or Indiana?

Based on median household income after income, property and sales taxes Illinois gives you a maximum amount of disposable income of $54,976

In comparison, Indiana gives you $54,118.

More Comparisons:

Illinois vs Missouri
Illinois vs Maryland
Illinois vs Wisconsin
Illinois vs Colorado
Illinois vs Minnesota

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/