STATE TAX COMPARISON · TAX YEAR 2026
Illinois vs Indiana taxes in 2026
Both tax income at a flat rate: Illinois 4.95% and Indiana 2.95%, plus county tax. Single filers keep more in Illinois at every income shown: $105 more at $50,000, rising to $145 at $250,000. A married couple with two children keeps more in Illinois at every income shown: $241 more at $50,000, rising to $281 at $250,000.
Your estimate
- You keep more in Illinois
- $110.09 a year
- Illinois income tax
- $3,567.71
- Indiana state and county income tax
- $3,677.80
- Take-home in Illinois
- $58,024.79
- Take-home in Indiana
- $57,914.70
Indiana figures include Marion County tax.
Take-home pay in Illinois and Indiana
Take-home pay is wages minus state income tax, federal income tax, Social Security and Medicare. Property, sales and other taxes are not included. Indiana figures include Marion County tax.
| Illinois | Indiana | |
|---|---|---|
| $50,000 in wages: $105 more take-home in Illinois | ||
| State income tax | $2,330 | $2,435 |
| Take-home pay | $40,025 | $39,920 |
| $75,000 in wages: $110 more take-home in Illinois | ||
| State income tax | $3,568 | $3,678 |
| Take-home pay | $58,025 | $57,915 |
| $100,000 in wages: $115 more take-home in Illinois | ||
| State income tax | $4,805 | $4,920 |
| Take-home pay | $74,375 | $74,260 |
| $150,000 in wages: $125 more take-home in Illinois | ||
| State income tax | $7,280 | $7,405 |
| Take-home pay | $106,511 | $106,386 |
| $250,000 in wages: $145 more take-home in Illinois | ||
| State income tax | $12,230 | $12,375 |
| Take-home pay | $170,952 | $170,807 |
| Illinois | Indiana | |
|---|---|---|
| $50,000 in wages: $241 more take-home in Illinois | ||
| State income tax | $1,896 | $2,137 |
| Take-home pay | $46,899 | $46,658 |
| $75,000 in wages: $246 more take-home in Illinois | ||
| State income tax | $3,133 | $3,380 |
| Take-home pay | $65,889 | $65,643 |
| $100,000 in wages: $251 more take-home in Illinois | ||
| State income tax | $4,371 | $4,622 |
| Take-home pay | $84,739 | $84,488 |
| $150,000 in wages: $261 more take-home in Illinois | ||
| State income tax | $6,846 | $7,107 |
| Take-home pay | $120,739 | $120,478 |
| $250,000 in wages: $281 more take-home in Illinois | ||
| State income tax | $11,796 | $12,077 |
| Take-home pay | $190,072 | $189,791 |
Rates and deductions
| Illinois | Indiana | |
|---|---|---|
| Rates | 4.95% flat | 2.95% flat, plus county tax |
| Standard deduction | None | None |
| Personal exemption | $2,925 single, $5,850 joint, none above $250,000 of income ($500,000 joint) | $1,000 single, $2,000 joint |
Retirement and Social Security
Does Illinois tax Social Security?
No. Illinois does not tax Social Security benefits.
Illinois Social Security tax rules
Does Illinois tax retirement income?
No. Illinois exempts pensions and 401(k) and IRA withdrawals, with no age, dollar or income limit.
Illinois retirement income tax for 2026
Does Indiana tax Social Security?
No. Indiana does not tax Social Security benefits.
Indiana Social Security tax rules
Does Indiana tax retirement income?
Yes. Indiana taxes pensions and 401(k) and IRA withdrawals at its flat rate plus county tax, but exempts military retirement and allows up to $16,000 for federal civil service annuities at 62.