Employee Cost: Connecticut vs Illinois (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Illinois saves $927/employee/year

$66,647 in Connecticut vs $65,720 in Illinois

Connecticut

$66,647

1.11x salary

Illinois

$65,720

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component CT IL Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $725 $374 +$351
Workers' Compensation $990 $714 +$276
State-Mandated Insurance $300 $0 +$300
Total Employer Cost $66,647 $65,720 +$927

Tax Rate Comparison

Rate Connecticut Illinois
SUTA Rate Range 1.5% – 6.9% 0.5% – 6.75%
SUTA Typical Rate 2.9% 2.75%
SUTA Wage Base $25,000 $13,590
Workers' Comp Rate 1.65% 1.19%
State Income Tax Yes Yes
Paid Family Leave 0.5% Not required

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Illinois over Connecticut saves $927 per employee per year in employer-side payroll costs alone. For a team of 10, that's $9,273 annually.

The biggest difference comes from SUTA (state unemployment tax) — Connecticut charges 2.9% vs Illinois's 2.75%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary CT Total IL Total Difference
$30,000 $33,707 $33,068 +$639
$40,000 $44,687 $43,952 +$735
$50,000 $55,667 $54,836 +$831
$60,000 $66,647 $65,720 +$927
$75,000 $83,117 $82,046 +$1,071
$100,000 $110,567 $109,256 +$1,311
$125,000 $138,017 $136,466 +$1,551
$150,000 $165,467 $163,676 +$1,791

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of CT.

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