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Georgia vs Illinois: Business Hiring Cost Comparison (2026)

A $60K employee costs $65,446 in Georgia and $65,738 in Illinois. Georgia saves $292/year per hire.

No signup No tracking Last updated March 2026
Data current as of March 2026 Sources: IRS Publication 15, SSA COLA notices, State Workforce Agencies

Georgia is $292 per year cheaper than Illinois for a $60,000 employee in 2026, with total employer costs of $65,446 vs $65,738 including all mandatory payroll taxes.

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$60,000
$30K $200K

At a $60,000 salary

Georgia saves $292/employee/year

$65,446 in Georgia vs $65,738 in Illinois

Georgia

$65,446

1.09x salary

Illinois

$65,738

1.1x salary

Shareable Insights

SUTA accounts for 77% of the gap

$226 difference in SUTA alone between these states.

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component GA 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) $166 $392 -$226
Workers' Compensation $648 $714 -$66
Total Employer Cost $65,446 $65,738 -$292

Tax Rate Comparison

Rate Georgia Illinois
SUTA Rate Range 0.4% – 5.4% 0.5% – 6.75%
SUTA Typical Rate 1.75% 2.75%
SUTA Wage Base $9,500 $14,250
Workers' Comp Rate 1.08% 1.19%
State Income Tax Yes Yes

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Georgia over Illinois saves $292 per employee per year in employer-side payroll costs alone. For a team of 10, that's $2,916 annually — enough to fund an additional hire or significantly offset operating costs.

The biggest difference comes from SUTA (state unemployment tax) — Georgia charges 1.75% on the first $9,500 vs Illinois's 2.75% on $14,250. The rate difference of 1.0 percentage points is significant because SUTA is levied on every employee and adjusts annually based on your unemployment claims history. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.

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.

Choosing Between Georgia and Illinois?

Cost alone favors Georgia: At a $60K salary, you save $292 per employee — a real number that compounds across a growing team. At 20 employees, that's $5,833/year before factoring in any raises.

When Illinois might still make sense: If your business depends on talent concentrated in Illinois — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $292/employee savings a strong argument for Georgia-based registration.

What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. Georgia has state income tax; Illinois has state income tax. This affects what salary you need to offer to attract equivalent candidates.

State Employment Profiles

Georgia

Georgia offers moderate employer taxes with a $9,500 SUTA wage base and competitive workers' compensation rates, anchored by Atlanta's large white-collar workforce.

Top Industries

film & media production, logistics (Delta hub), financial technology

Employer Note

Atlanta's 'Hollywood of the South' film tax credits attract production companies, but these bring largely project-based rather than permanent employee relationships.

Illinois

Illinois has a higher employer tax profile than most Midwest neighbors, with a $14,250 SUTA wage base and elevated workers' compensation costs tied to its comprehensive system.

Top Industries

financial services, food manufacturing, transportation & logistics (O'Hare hub)

Employer Note

Chicago-area employers frequently benchmark total employment cost against Wisconsin and Indiana, where SUTA and workers' comp rates can be meaningfully lower.

Employer Environment in Each State

Key factors that shape employer costs beyond the numbers above

Georgia Below-average employer costs
  • State income tax applies — factor into total compensation packages
  • SUTA rate 1.75% (wage base $9,500) — in line with national average
  • Workers' comp rate 1.08% — near national average, varies by industry classification
Illinois Moderate employer costs
  • State income tax applies — factor into total compensation packages
  • Above-average SUTA rate (2.75% on $14,250 wage base) — one of the higher state unemployment rates nationally
  • Workers' comp rate 1.19% — near national average, varies by industry classification

Hiring Strategy Takeaway

The $292 per-employee cost gap at $60K salary is primarily driven by SUTA rates (GA: 1.75% vs IL: 2.75%). For a growing business, this difference compounds quickly — a 10-person team in Georgia costs $2,916 less annually than the same team in Illinois, before accounting for benefits, overhead, or salary-level differences.

Cost Comparison at Different Salary Levels

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

Salary GA Total IL Total Difference
$30,000 $32,827 $33,086 -$259
$40,000 $43,700 $43,970 -$270
$50,000 $54,573 $54,854 -$281
$60,000 $65,446 $65,738 -$292
$75,000 $81,756 $82,064 -$308
$100,000 $108,938 $109,274 -$336
$125,000 $136,121 $136,484 -$363
$150,000 $163,303 $163,694 -$391

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

What About Startup Costs?

Hiring is one piece. See what it costs to actually open in these states.

Get notified when hiring costs change in these states

We track SUTA rates, workers' comp, and payroll taxes across all 50 states. Free updates.

Estimates only. These results are based on publicly available data and standard formulas. Actual costs may vary based on your specific circumstances. This calculator does not constitute financial, tax, or legal advice. Consult a qualified professional for advice on your situation.

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