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.
Illinois uses a flat income tax (4.95% flat) while Iowa has a flat system (3.8% flat). On a $100K salary, Illinois takes $4,950 in state and local taxes compared to Iowa’s $3,800 \u2014 a difference of $1,150.
Both states use flat brackets, but Illinois’s top rate of 4.95% is higher than Iowa’s 3.8%.
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 | $32,340 | $32,800 | +$460 | Iowa |
| $50K | $39,880 | $40,455 | +$575 | Iowa |
| $60K | $47,420 | $48,110 | +$690 | Iowa |
| $75K | $57,825 | $58,688 | +$863 | Iowa |
| $100K | $74,175 | $75,325 | +$1,150 | Iowa |
| $120K | $87,255 | $88,635 | +$1,380 | Iowa |
| $150K | $106,326 | $108,051 | +$1,725 | Iowa |
| $200K | $138,987 | $141,287 | +$2,300 | Iowa |
| $250K | $170,889 | $173,764 | +$2,875 | Iowa |
| $300K | $200,479 | $203,929 | +$3,450 | Iowa |
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: $79,758 in Illinois vs $84,635 in Iowa.
For a single earner at $100K filing jointly, take-home becomes $79,760 in Illinois and $80,910 in Iowa \u2014 a difference of $1,150. The gap remains similar regardless of filing status.
On paper, moving from Illinois to Iowa would save $1,150/year on a $100K salary, or $5,750 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,150/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.