Illinois vs Wisconsin: Tax Impact on Your Salary
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Illinois at 4.95% compared to Wisconsin at 7.65% creates roughly $1,620 gap at $60,000. Wisconsin makes up ground with Midwest values. Tax savings drive urban professionals toward Illinois, while dairy farmers often find Wisconsin worth the premium for Midwest values.
Between Illinois's 4.95% and Wisconsin's 7.65%, the tax differential hits around $1,620 yearly at $60,000. That's real money in anyone's book, even if the decision ultimately comes down to more than just tax policy.
🔑 Key Differences
- **State income tax**: Illinois at 4.95% vs Wisconsin at 7.65%
- **Annual savings** (on $60,000): Illinois saves you ~$1,620
- **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 | Wisconsin |
|---|---|---|
| State Income Tax | 4.95% | 3.54% - 7.65% |
| 💰 On $40,000 Salary |
State Tax: $1,980
Take Home: $38,020
+$258
|
State Tax: $2,238
Take Home: $37,762
|
| 💰 On $60,000 Salary |
State Tax: $2,970
Take Home: $57,030
+$387
|
State Tax: $3,357
Take Home: $56,643
|
| 💰 On $100,000 Salary |
State Tax: $4,950
Take Home: $95,050
+$645
|
State Tax: $5,595
Take Home: $94,405
|
| 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. | Wisconsin delivers good value throughout most regions. Milwaukee and Madison offer genuine metropolitan amenities with housing costs 40-50% below expensive metros. Quality homes typically sell for $200,000-300,000. Smaller cities provide even better value. Property taxes can be substantial, particularly in areas with strong schools. Heating costs significant during harsh winters. Overall, income stretches considerably further than in high-cost states. |
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
Wisconsin
✓ Advantages
- Strong manufacturing and agriculture sectors
- Excellent quality of life
- Good education systems statewide
- Lower cost of living than coastal states
- Beautiful natural areas and outdoor recreation
⚠ Considerations
- Higher state income tax (up to 7.65%)
- Very cold winters with heavy snow
- Some areas face population decline
- Property taxes can be high
- Sales tax at 5% plus local additions
Bottom Line
Bottom line: Illinois saves you about $1,620 annually at $60,000 on taxes alone. Wisconsin maintains appeal through Midwest values, attracting people willing to pay more for what it offers. The choice often comes down to {factor} versus direct financial savings.📢 Share This Comparison
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