Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between Illinois and Indiana for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.
| Tax | Illinois | Indiana |
|---|---|---|
| State income tax (effective) | 4.95% | 3.05% |
| Long-term capital gains | 4.95% | 3.05% |
| Property tax (effective) | 2.27% | 0.84% |
| Combined sales tax | 8.88% | 7.00% |
| Retirement income | fully-taxable | fully-taxable |
| Income system | flat | flat |
Illinois total tax
$20,266
Indiana total tax
$18,386
Illinois state tax
$4,896
Indiana state tax
$3,016
Difference
−$1,879
Indiana saves you money
As % of income
1.57%
Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.
Moving from Illinois to Indiana could save about $1,879 per year on this profile — roughly 1.57% of gross income.
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