Employee Cost: Illinois vs Ohio (2026)

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

At a $60,000 salary

Ohio saves $383/employee/year

$65,720 in Illinois vs $65,337 in Ohio

Illinois

$65,720

1.1x salary

Ohio

$65,337

1.09x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component IL OH 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) $374 $117 +$257
Workers' Compensation $714 $588 +$126
Total Employer Cost $65,720 $65,337 +$383

Tax Rate Comparison

Rate Illinois Ohio
SUTA Rate Range 0.5% – 6.75% 0.1% – 6.5%
SUTA Typical Rate 2.75% 1.3%
SUTA Wage Base $13,590 $9,000
Workers' Comp Rate 1.19% 0.98%
State Income Tax Yes Yes

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Ohio over Illinois saves $383 per employee per year in employer-side payroll costs alone. For a team of 10, that's $3,827 annually.

The biggest difference comes from SUTA (state unemployment tax) — Illinois charges 2.75% vs Ohio's 1.3%. 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 IL Total OH Total Difference
$30,000 $33,068 $32,748 +$320
$40,000 $43,952 $43,611 +$341
$50,000 $54,836 $54,474 +$362
$60,000 $65,720 $65,337 +$383
$75,000 $82,046 $81,632 +$414
$100,000 $109,256 $108,789 +$467
$125,000 $136,466 $135,947 +$519
$150,000 $163,676 $163,104 +$572

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

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