Illinois vs Virginia: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,738 in Illinois and $65,285 in Virginia. Virginia saves $453/year per hire.
Virginia is $453 per year cheaper than Illinois for a $60,000 employee in 2026, with total employer costs of $65,285 vs $65,738 including all mandatory payroll taxes.
Share This Page
At a $60,000 salary
Virginia saves $453/employee/year
$65,738 in Illinois vs $65,285 in Virginia
Illinois
$65,738
1.1x salary
Virginia
$65,285
1.09x salary
Shareable Insights
SUTA accounts for 59% of the gap
$267 difference in SUTA alone between these states.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | IL | VA | 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 | $125 | +$267 |
| Workers' Compensation | $714 | $528 | +$186 |
| Total Employer Cost | $65,738 | $65,285 | +$453 |
Tax Rate Comparison
| Rate | Illinois | Virginia |
|---|---|---|
| SUTA Rate Range | 0.5% – 6.75% | 0.17% – 6.5% |
| SUTA Typical Rate | 2.75% | 1.56% |
| SUTA Wage Base | $14,250 | $8,000 |
| Workers' Comp Rate | 1.19% | 0.88% |
| State Income Tax | Yes | Yes |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Virginia over Illinois saves $453 per employee per year in employer-side payroll costs alone. For a team of 10, that's $4,531 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from SUTA (state unemployment tax) — Illinois charges 2.75% on the first $14,250 vs Virginia's 1.56% on $8,000. The rate difference of 1.19 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 Illinois and Virginia?
Cost alone favors Virginia: At a $60K salary, you save $453 per employee — a real number that compounds across a growing team. At 20 employees, that's $9,061/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 $453/employee savings a strong argument for Virginia-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; Virginia 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.
Virginia
Virginia has a moderate employer tax profile with a $8,000 SUTA wage base and no paid family leave mandate, supported by a large federal government contracting economy.
federal government & defense contracting, cybersecurity & IT, financial services
Northern Virginia's massive federal contractor presence (Amazon AWS, Booz Allen, Leidos) drives IT wages significantly higher than state averages; employers outside NoVA often find recruitment difficult.
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
- SUTA rate 1.56% (wage base $8,000) — in line with national average
- Competitive workers' comp rate (0.88%) — below-average, favorable for labor-intensive businesses
Hiring Strategy Takeaway
The $453 per-employee cost gap at $60K salary is primarily driven by SUTA rates (IL: 2.75% vs VA: 1.56%). For a growing business, this difference compounds quickly — a 10-person team in Virginia costs $4,531 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 | VA Total | Difference |
|---|---|---|---|
| $30,000 | $33,086 | $32,726 | +$360 |
| $40,000 | $43,970 | $43,579 | +$391 |
| $50,000 | $54,854 | $54,432 | +$422 |
| $60,000 | $65,738 | $65,285 | +$453 |
| $75,000 | $82,064 | $81,564 | +$500 |
| $100,000 | $109,274 | $108,697 | +$577 |
| $125,000 | $136,484 | $135,829 | +$655 |
| $150,000 | $163,694 | $162,962 | +$732 |
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
Simplify Payroll in Illinois and Virginia
These providers handle tax calculations, filings, and compliance automatically.
All-in-one payroll, benefits, and HR. Automatically calculates and files federal, state, and local payroll taxes.
Payroll and tax filing for businesses of all sizes with built-in state-specific compliance.
Payroll, HR, and benefits in one platform. Handles multi-state employment and tax filings.
Some links may be affiliate links. CostCrunch may earn a commission at no extra cost to you.
Get notified when hiring costs change in these states
We track SUTA rates, workers' comp, and payroll taxes across all 50 states. Free updates.
More State Comparisons
Was this calculator helpful?
Your feedback helps us improve CostCrunch
Thank you for your feedback! ✓
Save Your Results
Download a professional PDF report with your complete analysis, charts, and key insights.
Download Your Report
Enter your email to get your personalized PDF report. We'll also send you useful financial tips.
No spam. Unsubscribe anytime.
More Business Calculators
Break-Even Calculator
Find how many units to sell to cover costs
Employee Cost Calculator
Find the true cost of hiring an employee
Startup Cost Estimator
Estimate one-time and recurring startup costs
Profit Margin Calculator
Calculate gross, operating, and net margins
Self-Employment Tax Calculator
Estimate SE tax and quarterly payments for freelancers
Loan Comparison
Compare loan options side by side
Markup & Margin
Convert between markup and margin percentages
Payroll Tax Calculator
Estimate employer payroll taxes by state
Get notified when tax rates change
We monitor payroll tax rates, SUTA, and cost-of-living data across all 50 states. When rates change, we'll let you know. Free, no spam.
We respect your privacy. Unsubscribe with one click.