Illinois vs Iowa: Paycheck Calculator Comparison
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Illinois delivers about $2,685 more in annual take-home at $75,000 (4.95% versus 8.53%). Iowa keeps competitive by providing strong communities. The decision often centers on housing costs rather than tax rates alone.
When you stack up Illinois at 4.95% against Iowa at 8.53%, $75,000 earners face roughly $2,685 in annual difference. It's one of those numbers that can sway a decision, depending on your priorities and circumstances.
🔑 Key Differences
- **State income tax**: Illinois at 4.95% vs Iowa at 8.53%
- **Annual savings** (on $75,000): Illinois saves you ~$2,685
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Illinois | Iowa |
|---|---|---|
| State Income Tax | 4.95% | 0.33% - 8.53% |
| 💰 On $40,000 Salary |
State Tax: $1,980
Take Home: $38,020
|
State Tax: $1,772
Take Home: $38,228
+$208
|
| 💰 On $60,000 Salary |
State Tax: $2,970
Take Home: $57,030
|
State Tax: $2,658
Take Home: $57,342
+$312
|
| 💰 On $100,000 Salary |
State Tax: $4,950
Take Home: $95,050
|
State Tax: $4,430
Take Home: $95,570
+$520
|
| Cost of Living | Illinois costs split dramatically between Chicago and downstate. Chicago proper commands high prices - rent for decent apartments often runs $1,500-2,500, with home prices in desirable neighborhoods exceeding $400,000. Suburbs provide more moderate housing but property taxes can reach $8,000-12,000 annually even for modest homes. Downstate cities like Springfield, Champaign, and Rockford offer genuine Midwest affordability with housing costs 40-60% below Chicago levels. Sales tax reaches 10.25% in Chicago, among the nation's highest. Utilities cost more during brutal winters. The cost division means identical salaries deliver vastly different lifestyles depending on location within Illinois. | Iowa consistently ranks among America's most affordable states. Des Moines and Cedar Rapids offer genuine metropolitan amenities - professional sports, cultural institutions, quality restaurants - while maintaining housing costs 50-60% below expensive coastal markets. Quality homes in good neighborhoods typically sell for $200,000-300,000. Iowa City combines college town atmosphere with reasonable prices. Smaller cities throughout Iowa provide even greater value. Property taxes vary by locality but generally stay moderate. Groceries, utilities, and services all cost less than national averages. The affordability advantage means even moderate incomes support comfortable, middle-class lifestyles. |
Pros & Cons
Illinois
✓ Advantages
- Flat 4.95% state income tax is simple and predictable
- Strong job market in Chicago across multiple industries
- Central US location provides excellent transportation access
- Downstate areas offer affordable cost of living
- Major universities and research institutions
⚠ Considerations
- Property taxes among highest nationally, especially near Chicago
- State faces significant financial challenges
- Sales tax reaches 10.25% in Chicago
- Cold winters with substantial heating costs
- Chicago's high costs offset lower expenses elsewhere
Iowa
✓ Advantages
- Low cost of living statewide
- Extremely affordable housing
- Strong agriculture and insurance sectors
- Good education systems
- Friendly communities
⚠ Considerations
- Cold winters
- Limited metro areas
- Population decline in rural areas
- Lower average salaries
- Limited public transportation
Bottom Line
Illinois's 4.95% versus Iowa's 8.53% translates to roughly $2,685 advantage at $75,000. Iowa stays relevant by offering strong communities. The decision often hinges on whether {factor} or direct tax savings carries more weight in your situation.📢 Share This Comparison
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