Illinois vs Indiana — Cost of Living, Taxes & Income Reality
Data: 2026-Q2 · BLS · HUD · KFFQuick comparison
| Metric | Illinois | Indiana |
|---|---|---|
| Cost of Living Index | 95 | 88 ✓ |
| Median Household Income | $83,211 ✓ | $71,959 |
| Median Rent | $1,768/mo | $1,550/mo ✓ |
| State Income Tax | 4.95% | 3.00% ✓ |
Tax reality
On a $70,000 salary, you keep about $1,365 more per year in Indiana. That works out to roughly $114/month in additional take-home.
Housing reality
Illinois
1BR $1,581 – $1,581/mo
Indiana
1BR $1,267 – $1,267/mo
Major cities compared
Illinois
Indiana
Purchasing power
Your $70,000 in Chicago feels like approximately $54,753 in Indianapolis, once housing and taxes are accounted for.
Who benefits from each
- Remote workers and high earners who want to keep more of their paycheck lean toward Indiana for its lower tax burden.
- Anyone prioritizing a lower overall cost of living will find Indiana stretches a paycheck further.
- Workers chasing higher nominal salaries may prefer Illinois, where median household income is higher.
Illinois vs Indiana — FAQ
Is it cheaper to live in Illinois or Indiana?
By cost of living index, Indiana is the cheaper of the two (Illinois: 95, Indiana: 88; national average = 100). Source: C2ER Cost of Living Index.
Which state has lower income taxes, Illinois or Indiana?
Indiana leaves more in your pocket. On a $70,000 salary, you keep about $1,365 more per year in Indiana. Source: Tax Foundation 2025, IRS 2025.
What is the median income difference between Illinois and Indiana?
Illinois has the higher median household income (Illinois: $83,211, Indiana: $71,959). Source: Census ACS 2024.
Should I move from Illinois to Indiana?
It depends on your priorities. Indiana offers a lower cost of living, while Illinois has higher median incomes. Weigh taxes, housing, and career options together. This is a picture, not a verdict.