State comparison
Illinois vs Indiana: which state is better to live in?
Indiana costs a median household about $5,000 a year less in state and local taxes than Illinois, mostly because property tax on a median home runs $1,704 a year against $4,758 in Illinois.
Illinois
High tax burden · COL index 92
Wins 4 categories
Indiana
Moderate tax burden · COL index 87
Wins 11 categories
Taxes: Illinois vs Indiana
Illinois has a flat 4.95% income tax, which works out to 5.0% on a median income of $74,580, or $3,692 a year. Indiana has a flat 3.05% income tax, which works out to 3.0% on a median income of $74,580, or $2,200 a year. Indiana wins on income tax at 2026 rates.
Property tax is 1.73% of home value a year in Illinois and 0.71% in Indiana (Tax Foundation, 2023); on each state's median home that is $4,758 against $1,704, so Indiana has the lower rate.
Combined state and local sales tax averages 8.82% in Illinois and 7.00% in Indiana; Indiana is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $10,423 a year in Illinois, $5,470 in Indiana. Indiana is cheaper on total state and local tax.
Housing and cost of living
Illinois's cost of living index is 92 and Indiana's is 87, where 100 is the national average; Indiana is about 6% cheaper day to day.
The median home costs $275K in Illinois and $240K in Indiana (Zillow, 2024), a $35K gap in Indiana's favor. A two-bedroom rents for about $1,400 a month in Illinois and $1,100 in Indiana.
Home insurance averages $1,900 a year in Illinois and $1,500 in Indiana, so Indiana is cheaper to insure.
Safety
Violent crime runs 413 incidents per 100,000 residents in Illinois and 396 in Indiana (FBI Crime Data Explorer, 2023); Indiana is the safer state by that measure, with a rate 4% lower. Property crime is 1,666 per 100,000 in Illinois against 1,767 in Indiana, again favoring Illinois.
Health
Life expectancy is 77.2 years in Illinois and 75.5 in Indiana (County Health Rankings, 2024), a 1.7-year edge for Illinois. The Commonwealth Fund's 2023 scorecard ranks Illinois's health system 20th of 50 and Indiana's 42nd, so Illinois scores better on care.
7.4% of Illinois residents have no health insurance against 8.9% in Indiana, which favors Illinois. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Illinois's K-12 schools 16th in the country and Indiana's 27th, 11 places apart in Illinois's favor. Indiana runs a school-choice voucher program; Illinois does not.
Laws and politics
In the 2024 presidential election Illinois went to Harris by 14 points and Indiana went to Trump by 19 points.
Illinois has shall-issue carry permits and a Giffords gun-law grade of A; Indiana has permitless carry and a grade of F, so Illinois regulates guns more tightly and Indiana is the friendlier state for gun owners.
Abortion is protected by state law in Illinois and banned with narrow exceptions in Indiana, and marijuana is legal for adults in Illinois and illegal in Indiana as of 2026. The minimum wage is $14.00 an hour in Illinois and $7.25 in Indiana.
Climate and risk
Natural disaster risk is moderate in Illinois (tornado, flood, blizzard) and moderate in Indiana (tornado, flood). Annual average air quality index is 45 in Illinois and 48 in Indiana (under 50 is good), favoring Illinois.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
4
Illinois
11
Indiana
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Score For My Profile →Questions people ask
Is Illinois or Indiana better to live in?
Indiana wins more of the measures that decide a move. Indiana on taxes ($5,470 a year for a median household against $10,423); Indiana on everyday costs (index 87 against 92); Indiana on safety (396 violent crimes per 100,000 against 413); Illinois on schools (ranked 16th against 27th).
Which is cheaper, Illinois or Indiana?
Indiana is cheaper day to day: cost of living index 87 against 92. The median home is $275K in Illinois and $240K in Indiana (2024). On state and local taxes Indiana saves a median household about $5,000 a year.
Does Illinois or Indiana have lower taxes?
Indiana. A household earning $74,580 pays about $10,423 a year in Illinois ($3,692 income tax, $4,758 property tax on the median home and $1,973 in sales tax) and $5,470 in Indiana ($2,200 income tax, $1,704 property tax on the median home and $1,566 in sales tax), at 2026 rates.
Which is safer, Illinois or Indiana?
Indiana, on the FBI's 2023 figures. Violent crime is 413 per 100,000 residents in Illinois and 396 in Indiana; property crime is 1,666 against 1,767.
Which has better schools, Illinois or Indiana?
Illinois. Education Week's 2023 Quality Counts report ranks Illinois 16th of 50 for K-12 and Indiana 27th. Indiana also offers school-choice vouchers.
Is Illinois or Indiana better for retirees?
Both treat retirement income about the same. Illinois does not tax Social Security, exempts pensions and has an estate tax; Indiana does not tax Social Security, partly exempts pensions and has no estate or inheritance tax. Property tax on a median home is $4,758 a year in Illinois and $1,704 in Indiana.