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Cost of Living · Updated June 2026

Illinois vs Indiana Cost of Living Comparison

Indiana's cost of living index sits at 91 against Illinois's 94 (US average = 100) – so a $80,000 lifestyle in Illinois costs about $77,400 in Indiana before taxes. After state taxes the gap shifts further: $80,000 gross nets $61,373 in Illinois vs $62,883 in Indiana for a single filer in 2026.

Housing drives most of it: median home prices are $280,000 in Illinois vs $250,000 in Indiana, with one-bedroom rents at $1,500 vs $1,150. Flat 4.95%; second-highest effective property tax rate in the US. Counties levy an additional 0.5%–3% local income tax

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Budget B
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Composite 2026 index incl. centre rent (NYC = 100). Salary figures are gross – taxes not included; pair with the salary after tax calculator.

Key insights

Key insights

  • COL index: Illinois 94 vs Indiana 91 (US = 100).
  • $80,000 gross nets $61,373 in Illinois vs $62,883 in Indiana (single filer, 2026).
  • Median homes: $280,000 vs $250,000.
  • State income tax on $80k: $3,737 vs $2,227/year.
  • Renter disposable income favours Indiana.
Illinois vs Indiana at a glance (2026)
MetricIllinoisIndiana
State income tax4.95% flat2.95% flat
Combined sales tax (avg)8.9%7.0%
Effective property tax2.11%0.84%
Cost of living index (US = 100)9491
Median home price$280,000$250,000
Typical 1-bed rent$1,500$1,150

Taxes: the hidden half of the comparison

Illinois taxes wages at a flat 4.95%, while Indiana uses a flat 2.95%. On $80,000, that's $3,737 vs $2,227 per year in state income tax.

Income tax isn't the whole story: sales tax averages 8.9% vs 7.0%, and property tax 2.11% vs 0.84% of home value annually. On a median home, the higher-property-tax state collects $5,908 a year – real money that "no income tax" headlines ignore.

Affordability verdict

For a renter earning $80,000: net pay minus 12× rent leaves $43,373 of disposable income per year in Illinois vs $49,083 in Indiana. Indiana wins the renter math in 2026.

For buyers the answer can flip: mortgage on the median home plus property tax totals roughly $2,105/month in Illinois vs $1,615 in Indiana at 2026 rates. Run the rent vs buy calculator for your target metro before deciding.

FAQ

Frequently asked questions

Is Indiana cheaper than Illinois?

Yes – Indiana's COL index of 91 runs 3% below Illinois's 94, driven mostly by housing ($250,000 vs $280,000 median homes).

How do taxes compare between Illinois and Indiana?

Illinois: income tax 4.95% flat, 8.9% sales, 2.11% property. Indiana: 2.95% flat, 7.0% sales, 0.84% property.

What salary do I need in Indiana to match $80,000 in Illinois?

About $77,400 pre-tax, using the COL ratio 91/94. After-tax differences add roughly $1,510/year on top.

Which state is better for retirees?

Both tax retirement income to some degree – check pension/Social Security exemptions. Property tax matters most for owners: 0.84% (Indiana) vs 2.11%.

Do these numbers include 2026 tax changes?

Yes – state rates reflect 2026 schedules (including phased flat-tax reductions where legislated) and the federal math uses 2026 IRS brackets and the $16,100 standard deduction.

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