Employee Cost: California vs Illinois (2026)
Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.
Illinois is $74 per year cheaper than California for a $60,000 employee in 2026, with total employer costs of $65,720 vs $65,794 including all mandatory payroll taxes.
At a $60,000 salary
Illinois saves $74/employee/year
$65,794 in California vs $65,720 in Illinois
California
$65,794
1.1x salary
Illinois
$65,720
1.1x salary
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | CA | 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) | $238 | $374 | -$136 |
| Workers' Compensation | $924 | $714 | +$210 |
| Total Employer Cost | $65,794 | $65,720 | +$74 |
Tax Rate Comparison
| Rate | California | Illinois |
|---|---|---|
| SUTA Rate Range | 1.5% – 6.2% | 0.5% – 6.75% |
| SUTA Typical Rate | 3.4% | 2.75% |
| SUTA Wage Base | $7,000 | $13,590 |
| Workers' Comp Rate | 1.54% | 1.19% |
| State Income Tax | Yes | Yes |
| Disability Insurance | 0.0% | Not required |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Illinois over California saves $74 per employee per year in employer-side payroll costs alone. For a team of 10, that's $743 annually.
The biggest difference comes from workers' compensation rates — California charges 1.54% vs Illinois's 1.19%. 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.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | CA Total | IL Total | Difference |
|---|---|---|---|
| $30,000 | $33,037 | $33,068 | -$31 |
| $40,000 | $43,956 | $43,952 | +$4 |
| $50,000 | $54,875 | $54,836 | +$39 |
| $60,000 | $65,794 | $65,720 | +$74 |
| $75,000 | $82,173 | $82,046 | +$127 |
| $100,000 | $109,470 | $109,256 | +$214 |
| $125,000 | $136,768 | $136,466 | +$302 |
| $150,000 | $164,065 | $163,676 | +$389 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of CA.
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