Tax rates and take-home pay comparison for all Midwest US states.
This ranking covers 12 states, with South Dakota at the top ($79,125 take-home on $100K) and Minnesota at the bottom ($72,723). The spread between best and worst is $6,403/year.
The ranking is influenced by state income tax rates, tax structure (flat vs graduated), local taxes, and in cost-adjusted rankings, the cost of living index. States with no income tax generally rank highest for raw take-home pay, but cost adjustments can shuffle the order significantly.
| # | State | Tax Rate | Type | Take-Home | Monthly | Eff. Rate | Cost Index | Cost-Adj. |
|---|---|---|---|---|---|---|---|---|
| 1 | South Dakota | 0% | None | $79,125 | $6,594 | 20.9% | 92 | $86,005 |
| 2 | North Dakota | 2.5% | Grad. | $77,500 | $6,458 | 22.5% | 92 | $84,239 |
| 3 | Ohio | 2.75% | Flat | $76,375 | $6,365 | 23.6% | 90 | $84,861 |
| 4 | Indiana | 2.95% | Flat | $76,175 | $6,348 | 23.8% | 90 | $84,639 |
| 5 | Nebraska | 4.55% | Grad. | $76,168 | $6,347 | 23.8% | 91 | $83,701 |
| 6 | Kansas | 5.58% | Grad. | $75,498 | $6,292 | 24.5% | 90 | $83,887 |
| 7 | Iowa | 3.8% | Flat | $75,325 | $6,277 | 24.7% | 89 | $84,635 |
| 8 | Missouri | 4% | Flat | $75,125 | $6,260 | 24.9% | 89 | $84,410 |
| 9 | Michigan | 4.25% | Flat | $74,875 | $6,240 | 25.1% | 91 | $82,280 |
| 10 | Illinois | 4.95% | Flat | $74,175 | $6,181 | 25.8% | 93 | $79,758 |
| 11 | Wisconsin | 7.65% | Grad. | $74,153 | $6,179 | 25.8% | 93 | $79,734 |
| 12 | Minnesota | 9.85% | Grad. | $72,723 | $6,060 | 27.3% | 99 | $73,457 |