Illinois vs Utah: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,738 in Illinois and $65,649 in Utah. Utah saves $89/year per hire.
Utah is $89 per year cheaper than Illinois for a $60,000 employee in 2026, with total employer costs of $65,649 vs $65,738 including all mandatory payroll taxes.
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At a $60,000 salary
Utah saves $89/employee/year
$65,738 in Illinois vs $65,649 in Utah
Illinois
$65,738
1.1x salary
Utah
$65,649
1.09x salary
Shareable Insights
workers' comp accounts for 230% of the gap
$204 difference in workers' comp alone between these states.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | IL | UT | 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) | $392 | $507 | -$115 |
| Workers' Compensation | $714 | $510 | +$204 |
| Total Employer Cost | $65,738 | $65,649 | +$89 |
Tax Rate Comparison
| Rate | Illinois | Utah |
|---|---|---|
| SUTA Rate Range | 0.5% – 6.75% | 0.1% – 7.0% |
| SUTA Typical Rate | 2.75% | 1.0% |
| SUTA Wage Base | $14,250 | $50,700 |
| Workers' Comp Rate | 1.19% | 0.85% |
| State Income Tax | Yes | Yes |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Utah over Illinois saves $89 per employee per year in employer-side payroll costs alone. For a team of 10, that's $889 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from workers' compensation rates — Illinois charges 1.19% of payroll vs Utah's 0.85%. Workers' comp rates vary by industry within each state, so high-risk industries (construction, manufacturing) will see larger absolute dollar differences. 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 Illinois and Utah?
Cost alone favors Utah: At a $60K salary, you save $89 per employee — a real number that compounds across a growing team. At 20 employees, that's $1,778/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 $89/employee savings a strong argument for Utah-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. Illinois has state income tax; Utah has state income tax. This affects what salary you need to offer to attract equivalent candidates.
State Employment Profiles
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.
financial services, food manufacturing, transportation & logistics (O'Hare hub)
Chicago-area employers frequently benchmark total employment cost against Wisconsin and Indiana, where SUTA and workers' comp rates can be meaningfully lower.
Utah
Utah has a very low SUTA wage base with below-average typical rates and no paid family leave mandate, reflecting its consistently low unemployment rate.
technology (Silicon Slopes), outdoor recreation, financial services
Utah's 'Silicon Slopes' corridor (Lehi to Salt Lake City) has attracted hundreds of tech companies; startup competition for software engineers has pushed wages near Seattle levels in some specialties.
Employer Environment in Each State
Key factors that shape employer costs beyond the numbers above
- 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
- State income tax applies — factor into total compensation packages
- Low SUTA rate (1.0% on $50,700 wage base) — below-average unemployment insurance cost
- Competitive workers' comp rate (0.85%) — below-average, favorable for labor-intensive businesses
Hiring Strategy Takeaway
The $89 per-employee cost gap at $60K salary is primarily driven by workers' compensation rates (IL: 1.19% vs UT: 0.85%). For a growing business, this difference compounds quickly — a 10-person team in Utah costs $889 less annually than the same team in Illinois, before accounting for benefits, overhead, or salary-level differences.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | IL Total | UT Total | Difference |
|---|---|---|---|
| $30,000 | $33,086 | $32,892 | +$194 |
| $40,000 | $43,970 | $43,842 | +$128 |
| $50,000 | $54,854 | $54,792 | +$62 |
| $60,000 | $65,738 | $65,649 | +$89 |
| $75,000 | $82,064 | $81,924 | +$140 |
| $100,000 | $109,274 | $109,049 | +$225 |
| $125,000 | $136,484 | $136,174 | +$310 |
| $150,000 | $163,694 | $163,299 | +$395 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of IL.
What About Startup Costs?
Hiring is one piece. See what it costs to actually open in these states.
Illinois
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