Side-by-side tax comparison between Indiana (3.05% top rate) and Michigan (4.25% top rate).
| Salary | Indiana | Michigan | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,404 | $39,954 | −$450 | Indiana |
| $75K | $58,462 | $57,787 | −$675 | Indiana |
| $100K | $75,103 | $74,203 | −$900 | Indiana |
| $150K | $107,765 | $106,415 | −$1,350 | Indiana |
| $200K | $141,528 | $139,728 | −$1,800 | Indiana |
Indiana offers higher take-home pay at every salary level. Indiana's 3.05% top rate is more favorable than Michigan's 4.25%. At $100K, the difference is $900/year — that’s $75/month.
However, cost of living matters. Indiana has a cost index of 90 while Michigan is at 91. With similar costs of living, the tax difference is the main factor.