Illinois Paycheck Calculator

How to Use This Illinois Paycheck Calculator

This Illinois paycheck calculator estimates your 2026 net take-home pay after federal income tax, Illinois state income tax (flat 4.95%), Social Security, and Medicare. The state is locked to Illinois; use the generic paycheck calculator if you live or work elsewhere.

Enter your gross salary or hourly wage, filing status, and any pre-tax deductions above. Results update instantly.

How Illinois State Income Tax Works

Illinois has a flat 4.95% state income tax on essentially all earned and unearned income. The flat rate is mandated by Article IX, Section 3 of the Illinois Constitution — a 2020 ballot measure to allow progressive brackets failed at the polls, keeping the flat structure in place. For a full annual tax picture beyond paycheck withholding, see our Illinois income tax calculator.

Illinois calculates tax in three steps:

1. Start with Illinois base income — generally federal AGI, with a few state-specific additions and subtractions.
2. Subtract personal exemptions — $2,925 per taxpayer (and per dependent) for 2026. Illinois has no standard deduction.
3. Multiply by 4.95% — the flat rate produces Illinois income tax.

Retirement Income Exemption

Illinois is one of the most retiree-friendly tax states: all qualified retirement income is exempt from Illinois state tax — Social Security, pensions, 401(k) distributions, and IRA withdrawals all pay 0% IL tax. This makes Illinois more retirement-friendly than its 4.95% flat rate suggests for working-age residents.

Federal Income Tax — Progressive Brackets

On top of the flat IL state tax, every Illinois worker owes federal income tax based on progressive brackets ranging from 10% to 37% for 2026.

Step-by-Step Example — $75,000 Single Filer in Illinois

1. Gross annual pay: $75,000
2. Federal taxable income: $75,000 − $16,100 standard deduction = $58,900. Federal tax: ~$5,765.
3. Illinois taxable income: $75,000 − $2,925 exemption = $72,075. IL tax at 4.95%: $3,568.
4. FICA: 7.65% on $75,000 = $5,738.
5. Net take-home: ~$59,929/year (~$2,305 biweekly).

FICA Taxes — Social Security and Medicare

• Social Security: 6.2% on wages up to $176,100 (2025) or $184,500 (2026). No further withholding once you cross the wage base for the year.
• Medicare: 1.45% on all wages with no cap. Additional 0.9% Medicare surtax on wages above $200,000 single / $250,000 MFJ.
• Employer match: your employer matches Social Security and base Medicare; the Additional Medicare surtax is employee-only.

No Local Income Tax in Illinois — Even in Chicago

Unlike New York City or many Ohio cities, no Illinois city or county imposes a personal income tax on wages. Chicago residents pay 4.95% IL state income tax and federal tax — nothing more on the local payroll line.

Chicago does collect revenue through other channels: 10.25% combined sales tax (highest among major US cities), the Cook County property tax (with notably high effective rates in many neighborhoods), bottled water tax, parking taxes, and various business head taxes. For a Chicago renter, the overall tax bite remains lower than NYC or San Francisco for comparable wages.

Illinois vs. Neighboring States

• vs. Indiana: IN has a 2.95% flat state rate but adds 0.5%–3.0% county income tax. For most Indiana counties, total state+county is 4.5%–5.5% — roughly comparable to Illinois.
• vs. Wisconsin: WI uses progressive brackets 3.5%–7.65%. A $100,000 single filer pays roughly $5,800 in WI tax vs. $4,800 in IL.
• vs. Iowa: IA recently moved to a 3.8% flat rate — Iowa is now cheaper than Illinois for state income tax.
• vs. Missouri: MO uses progressive brackets topping at 4.7%. Roughly comparable to IL for middle incomes.

How to Maximize Your Illinois Take-Home Pay

• Max your 401(k) — pre-tax 401(k) contributions reduce both federal and IL state tax. A $20,000 contribution saves a single filer in the 22% federal bracket roughly $4,400 federal + $990 Illinois = $5,390 in annual tax.
• Enroll in an HSA — IL honors HSA contributions as pre-tax. $4,300 individual / $8,550 family in 2026.
• Use a Dependent Care FSA — up to $5,000 per family in pre-tax contributions for childcare or elder care.
• File for Illinois education and property tax credits — IL offers a 5% Property Tax Credit on Illinois income tax owed (capped at your IL liability) and a K-12 Education Expense Credit of 25% up to $750/year for qualified school expenses.
• Update your IL-W-4 — Illinois has its own withholding form separate from the federal W-4. Adjust whenever your dependents, marital status, or pre-tax deductions change.

State-Specific Payroll Deductions in Illinois

Illinois has no state-mandated employee payroll deductions beyond income tax withholding. There is no Illinois SDI, no statewide PFML program, and no local income tax anywhere in the state. Specifically:

• No State Disability Insurance (SDI): Illinois does not operate a state disability insurance program. There is no SDI line on an Illinois paycheck — unlike California (0.9% SDI), New Jersey (0.09% TDI), or Hawaii (0.5% TDI).
• No Paid Family and Medical Leave (PFML) program: Illinois does not have a statewide paid family leave program with a payroll deduction. Illinois employees rely on federal FMLA (unpaid) and any employer-provided leave programs.
• No local or city income tax on wages: Chicago, Springfield, Rockford, Aurora, and every other Illinois city and county impose no personal income tax on wages. Illinois withholding is purely the flat 4.95% state rate plus federal and FICA.

The only state-level paycheck deduction in Illinois is Illinois income tax withholding at the flat 4.95% rate (after the personal exemption). This keeps Illinois paystubs simple — one state tax line, nothing else state-specific.

How to Fill Out the Illinois Withholding Certificate (Form IL-W-4)

Illinois Form IL-W-4(Employee's Illinois Withholding Allowance Certificate) is a separate form from the federal W-4 — you must complete both forms when starting a new job in Illinois. Key fields on the IL-W-4:

• Basic Personal Allowances (Line 1): Enter the number of basic personal allowances you want to claim. Each allowance reduces the amount of wages subject to Illinois withholding. Most single filers claim 1; married filers with one earner claim 2. Claiming more allowances than you qualify for risks underpaying Illinois tax.
• Additional Allowances for Dependents (Line 2): You may claim additional allowances for qualifying dependents, reducing withholding further. Each dependent allowance corresponds roughly to the $2,925 personal exemption Illinois provides per dependent.
• Additional Withholding (Line 3): You may specify a fixed dollar amount to be withheld each pay period above the calculated amount. Useful if you have significant non-wage income (rental income, self-employment, investment income) that will not have Illinois withholding.
• Exempt from Illinois Withholding (Line 4):You may claim exempt if you had no Illinois income tax liability in the prior year and expect none in the current year. Given Illinois's 4.95% flat rate on nearly all income, this applies only to very low-income earners.

Submit a new IL-W-4 to your employer whenever your filing status, number of dependents, or income situation changes. Illinois does not automatically accept federal W-4 changes — you must file a separate Illinois form. Compare your withholding to your expected annual Illinois tax liability using the Illinois income tax calculator.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Illinois tax rates, exemptions, and federal rules change. Consult a qualified Illinois-licensed CPA or tax professional for your specific situation.