How Illinois taxes your paycheck
Illinois taxes income at a flat 4.95%. Its constitution requires a single rate for individuals, so there are no brackets, and the rate has been 4.95% since 2017. Before it applies, each person on the return gets a personal exemption, which rises with inflation each year.
The exemption has a cliff rather than a phase-out: once federal AGI is over $250,000 ($500,000 for married couples filing jointly), it disappears entirely. There are no state payroll taxes on employees, and no city or county in Illinois, Chicago included, taxes wages.
Illinois income tax = 4.95% × (wages − 401(k) − health premiums − exemptions)
- Personal exemption: up to $2,925 single, $5,850 married filing jointly and $2,925 head of household, taken off income before tax. It shrinks or ends at higher incomes, as above.
Worked example
You earn $75,000 a year in Illinois, file single and are paid every two weeks. Federal income tax is $7,670 and Social Security and Medicare $5,738, the same in every state.
Illinois taxes $72,075 of it, for $3,568 of state income tax. You keep $58,025 a year, or $2,231.72 per paycheck: $3,568 a year less than in a state with no income tax.
The same salary takes home $58,656 in Michigan and $59,974 in Ohio.
Take-home pay in Illinois by salary
Single filer, paid every two weeks, no 401(k) or premiums.
| Salary | Illinois tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $40,000 | $1,835 | $32,485 | $1,249.41 |
| $60,000 | $2,825 | $47,565 | $1,829.41 |
| $80,000 | $3,815 | $61,295 | $2,357.49 |
| $100,000 | $4,805 | $74,375 | $2,860.57 |
| $150,000 | $7,280 | $106,511 | $4,096.57 |
Things to know
- Retirement income is exempt. Illinois doesn't tax 401(k), IRA and pension withdrawals or Social Security, so your 401(k) contributions save 4.95% now and the withdrawals stay state-tax-free later.
- Living next door. Illinois has reciprocal agreements with Iowa, Kentucky, Michigan and Wisconsin: residents of those states who work in Illinois pay income tax only to their home state, if they file the exemption form with their employer.
- Extra exemptions. Each dependent adds another exemption, and people 65 or older or legally blind get $1,000 more each. This calculator includes only the exemptions for you and your spouse.
- This estimates what you owe, not what's withheld. Withholding follows your W-4 and Illinois's own withholding form, so paychecks can differ a little; the difference comes back as a refund or is due when you file. The W-4 withholding calculator checks the federal side.
Questions people ask
Does Chicago have a city income tax?
No. Chicago and every other Illinois city tax property and sales instead; the only income tax on wages is the state's 4.95%.
Is Illinois a flat tax state?
Yes. Every dollar of taxable income is taxed at 4.95%, whatever you earn. What changes with income is the personal exemption, which disappears above $250,000 of federal AGI ($500,000 married).
Does Illinois tax 401(k) contributions?
No. Traditional 401(k) deferrals are left out of Illinois taxable wages, just as they are federally.
Paycheck calculators for other states
California · Florida · Georgia · Michigan · New York · North Carolina · Ohio · Pennsylvania · Texas. For any other state, the paycheck calculator takes your state's rate.
Sources
- Illinois Department of Revenue: personal exemption allowance ($2,925 for 2026)
- Illinois Department of Revenue: Informational Bulletin FY 2026-15, what's new for Illinois income taxes
- Illinois Department of Revenue: 2026 Booklet IL-700-T, withholding tax tables
- Illinois Department of Revenue: IL-1040 instructions, exemptions (income limits)
- IRS: tax inflation adjustments for tax year 2026 (federal brackets and standard deduction)
- Social Security Administration: contribution and benefit base ($184,500 in 2026)
Reviewed October 11, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.