Compare taxes and see how much you save moving from Wisconsin to Indiana
Indiana’s flat 3.15% income tax (dropping to 2.9% by 2027) beats Wisconsin’s progressive rates for most earners above $30,000. Wisconsin’s top rate of 7.65% kicks in at just $263,000 for single filers — and applies to many upper-middle-income households. Indiana saves $1,642/year at $100,000 on state income tax alone. Indiana also has a significant property tax advantage (homestead capped at 1% vs Wisconsin’s 1.61%) and better retirement tax treatment (exempting Social Security and most retirement income). Wisconsin’s 5% sales tax is lower than Indiana’s 7% flat rate, providing some offset for high spenders.
Progressive (4 Brackets)
4-bracket progressive tax 3.54–7.65%; taxes most retirement income; 5% state sales tax; property ~1.61%
Flat Rate (reducing to 2.9%)
Flat 3.15% state income tax reducing to 2.9% by 2027; plus county income tax 0.5–3.38%; property capped at 1% homestead
At $100,000 income:
That is $137/month back in your pocket!
| Income | WI Tax | IN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,170 | $1,575 | $595 | $5,950 |
| $75,000 | $3,488 | $2,363 | $1,125 | $11,250 |
| $100,000 | $4,792 | $3,150 | $1,642 | $16,420 |
| $150,000 | $7,403 | $4,725 | $2,678 | $26,780 |
| $250,000 | $12,615 | $7,875 | $4,740 | $47,400 |
| $500,000 | $31,786 | $14,500 | $17,286 | $172,860 |
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Moving between Wisconsin and Indiana? Wisconsin’s progressive brackets, retirement income taxation, and partial-year residency returns require careful calculation. TaxHub connects you with licensed CPAs who specialise in state tax moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Talk to a CPA About Your State Move →The difference is dramatic for high earners. At $250,000 income: Wisconsin charges approximately $12,615 vs Indiana $7,875 — Indiana saves $4,740/year. At $500,000: Wisconsin charges approximately $31,786 vs Indiana approximately $14,500 — Indiana saves $17,286/year. Wisconsin’s 7.65% bracket applies above $263,480 for single filers — a relatively low threshold for a top rate, meaning successful professionals in their 40s–50s frequently hit Wisconsin’s highest bracket. Indiana’s flat rate means a doctor earning $400,000 pays the same percentage as a teacher earning $50,000.
Yes, Indiana is significantly better for retirement. Indiana exempts Social Security benefits and most private retirement income (pensions, 401(k) distributions, IRA withdrawals) from state income tax. Wisconsin taxes pension income, 401(k) distributions, and IRA withdrawals as regular income — only Social Security receives partial exemption. A Wisconsin retiree withdrawing $80,000/year from retirement accounts could pay $4,000–6,000/year in state income tax; the same Indiana retiree pays near zero. Indiana’s property tax cap (1% homestead) also reduces fixed costs for retirees on fixed incomes.
Wisconsin is lower. Wisconsin charges 5% state sales tax plus local taxes averaging approximately 0.44%, producing a combined rate of about 5.44% in most areas. Indiana charges a flat 7% statewide with no local additions. On $40,000 of annual taxable spending, Wisconsin residents pay approximately $2,176 vs Indiana residents $2,800 — a difference of $624/year. Wisconsin’s lower sales tax partially offsets Indiana’s income tax advantage for consumers, but the income tax savings still dominate the total comparison at most income levels.
Madison wins for: university research careers, Big Ten culture, outdoor recreation (lakes, cycling), and a progressive urban environment with a smaller-city feel (population ~270,000). Indianapolis wins for: lower income tax (saving $1,642+/year at $100K state-only), healthcare (Eli Lilly, IU Health), motorsport/sports culture, lower property tax (homestead cap), and more affordable housing despite faster growth. Indianapolis metro has grown to 2.1M people and offers genuine Fortune 500 corporate career opportunities. For career-focused earners in pharma, logistics, or finance: Indianapolis provides better total financial outcomes. For university-adjacent careers or tech startups: Madison’s UW ecosystem is superior.