Illinois vs Iowa:
Take-Home Pay Comparison
Side-by-side tax comparison between Illinois (4.95% top rate, flat) and Iowa (3.8% top rate, flat). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Illinois vs Iowa
Illinois uses a flat income tax (4.95% flat) while Iowa has a flat system (3.8% flat). On a $100K salary, Illinois takes $4,809 in state and local taxes compared to Iowa’s $3,188 \u2014 a difference of $1,621.
Both states use flat brackets, but Illinois’s top rate of 4.95% is higher than Iowa’s 3.8%.
Take-Home at Every Salary Level
Iowa wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Illinois | Iowa | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,481 | $33,412 | +$931 | Iowa |
| $50K | $40,021 | $41,067 | +$1,046 | Iowa |
| $60K | $47,561 | $48,722 | +$1,161 | Iowa |
| $75K | $57,966 | $59,299 | +$1,333 | Iowa |
| $100K | $74,316 | $75,937 | +$1,621 | Iowa |
| $120K | $87,396 | $89,247 | +$1,851 | Iowa |
| $150K | $106,467 | $108,663 | +$2,196 | Iowa |
| $200K | $139,128 | $141,899 | +$2,771 | Iowa |
| $250K | $171,030 | $174,376 | +$3,346 | Iowa |
| $300K | $200,620 | $204,540 | +$3,921 | Iowa |
Cost of Living: Illinois (93) vs Iowa (89)
Take-home pay only tells part of the story. Illinois has a cost of living index of 93 while Iowa is at 89 (national average = 100).
With similar costs of living (93 vs 89), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $79,910 in Illinois vs $85,322 in Iowa.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $80,042 in Illinois and $82,134 in Iowa \u2014 a difference of $2,091. The gap widens under married filing, making the state choice even more impactful for married filers.
Should You Move from Illinois to Iowa?
On paper, moving from Illinois to Iowa would save $1,621/year on a $100K salary, or $8,104 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,621/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.