Median one-bedroom rent across the cities we track is $1,258 in Illinois versus $963 in Indiana. Overall, Indiana runs roughly 23% cheaper on rent than Illinois, its main day-to-day cost driver.
Median household income across tracked cities is $75,134 in Illinois and $62,995 in Indiana — about 16% higher in Illinois. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
State Taxes
Sales Tax
6.25%
7%
+0.8 pp in Indiana
Income Tax (top rate)
4.95%
2.95%
+2.0 pp in Illinois
Housing (median across tracked cities)
Median 1BR Rent
$1,258
$963
+23% in Illinois
Median Home Value
$315,200
$207,000
+34% in Illinois
Income (median across tracked cities)
Median Household Income
$75,134
$62,995
+16% in Illinois
Climate (median across tracked cities)
Avg Annual Temperature
52.7°F
53.2°F
+0.5°F in Indiana
Illinois vs Indiana — FAQ
- Is it cheaper to live in Illinois or Indiana?
- Indiana is cheaper on rent — its median one-bedroom of $963 runs about 23% below Illinois's $1,258, based on the cities we track in each state.
- How much more do you need to earn to live in Illinois than in Indiana?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $50,000 a year in Illinois versus $39,000 in Indiana.
- Which has lower taxes, Illinois or Indiana?
- Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
Housing, income, and climate are medians across the 1/1 cities we track in Illinois/Indiana — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.