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.

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.