This calculator provides an informational estimate based on the published rules and rates for Illinois as of August 2026 (IRS Rev. Proc. 2025-32; IL-700-T 2026). It does not constitute tax, legal, or financial advice. Individual circumstances—including additional deductions, credits, phaseouts, and special situations—may produce different results. For decisions involving tax obligations, payroll processing, or financial planning, consult a qualified professional licensed in your jurisdiction.
Assumptions: Single filer, 0 IL-W-4 allowances, no pre-tax deductions, 2026 tax rates (IRS Rev. Proc. 2025-32; standard deduction $16,100). Your actual take-home may vary.
| Annual Gross Pay | Federal Tax | Illinois State Tax | FICA | Total Deductions | Net Pay | Effective Tax Rate |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,475 | $3,825 | $10,120 | $39,880 | 20.24% |
| $75,000 | $7,670 | $3,713 | $5,738 | $17,120 | $57,880 | 22.83% |
| $100,000 | $13,170 | $4,950 | $7,650 | $25,770 | $74,230 | 25.77% |
| $150,000 | $24,734 | $7,425 | $11,475 | $43,634 | $106,366 | 29.09% |
Federal tax computed using 2026 brackets (Rev. Proc. 2025-32) after $16,100 standard deduction. Illinois tax = gross × 4.95% at 0 IL-W-4 allowances; each allowance reduces taxable wages by $2,925. FICA = Social Security 6.2% up to $184,500 + Medicare 1.45%.
Your Illinois take-home pay is your gross salary minus federal income tax, Illinois' 4.95% flat tax, and FICA (Social Security and Medicare). For a $75,000 annual salary with single filing status, 0 IL-W-4 allowances, and no pre-tax deductions, your estimated biweekly take-home is about $2,226.
Use the calculator above to get a personalized estimate based on your exact filing status, IL-W-4 allowances, and deductions.
The federal income tax uses a progressive bracket system ranging from 10% to 37%, made permanent by the One Big Beautiful Bill Act (July 2025). For 2026, the standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household (IRS Rev. Proc. 2025-32).
| Single Filer — 2026 Taxable Income | Rate |
|---|---|
| $0 – $12,400 | 10% |
| $12,401 – $50,400 | 12% |
| $50,401 – $105,700 | 22% |
| $105,701 – $201,775 | 24% |
| $201,776 – $256,225 | 32% |
| $256,226 – $640,600 | 35% |
| Over $640,600 | 37% |
Source: IRS Revenue Procedure 2025-32. Other filing statuses are available in the calculator above.
Illinois has a flat 4.95% state income tax rate for 2026 (unchanged). Illinois does not have a standard deduction but allows a personal exemption of $2,925 per person for 2026 (up from $2,850 in 2025), per IDOR Informational Bulletin FY 2026-15 and the IL-700-T 2026 withholding tables. For withholding purposes, each IL-W-4 Line 1 allowance reduces taxable wages by $2,925 annually (prorated per pay period).
Pre-tax deductions like 401(k) contributions reduce your federal and Illinois taxable income. HSA contributions and employer-sponsored health insurance premiums (paid through a Section 125 cafeteria plan) also reduce FICA taxable wages in addition to federal and state income taxes.
Gross Pay → subtract Pre-Tax Deductions → Taxable Gross → apply Federal Brackets, IL 4.95%, and FICA → Net Pay
Illinois allows a personal exemption of $2,925 per person for tax year 2026, increased from $2,850 in 2025 (IDOR FY 2026-15 / IL-700-T 2026). This exemption reduces your taxable income before the 4.95% rate is applied. For withholding, each IL-W-4 allowance corresponds to one $2,925 exemption, prorated per pay period.
Unlike the federal system, Illinois does not offer a standard deduction. This means more of your income is subject to state tax, but the flat 4.95% rate keeps the calculation straightforward.
Contributions to a 401(k) reduce your federal and Illinois taxable income. For example, a $5,000 401(k) contribution saves you about $247.50 in Illinois state tax (5,000 × 4.95%). HSA contributions and Section 125 health insurance premiums additionally reduce your FICA tax base.
Pensions, 401(k) distributions, IRA withdrawals, and Social Security benefits are not taxed in Illinois. This exemption can save retirees thousands of dollars annually.
If your annual salary exceeds $184,500, you will notice a mid-year paycheck increase. This happens because Social Security tax (6.2%) stops being withheld once your year-to-date earnings hit the 2026 wage base cap of $184,500 (SSA.gov).
| Salary | Paycheck Before SS Cap | Paycheck After SS Cap | Increase |
|---|---|---|---|
| $200,000 | $5,310 | $5,787 | +$477 |
| $250,000 | $6,413 | $7,009 | +$596 |
| $300,000 | $7,429 | $8,145 | +$715 |
Example: single filer, 0 IL-W-4 allowances, no pre-tax deductions, biweekly pay. Take-home is shown before and after Social Security withholding stops; the increase equals the 6.2% Social Security tax no longer withheld once 2026 year-to-date wages reach the $184,500 cap.
Social Security tax stops at $184,500, but Medicare tax (1.45%) applies to every dollar you earn, with an additional 0.9% for high earners above $200,000 (single).
Bonuses are considered supplemental wages. Illinois taxes bonuses at the same flat 4.95% rate, but federal withholding can be calculated using either the percentage method (22% flat rate) or the aggregate method (added to regular wages).
| Method | Federal Withholding | When Used |
|---|---|---|
| Percentage Method | 22% flat | Default for most employers |
| Aggregate Method | Marginal rate | Bonus added to regular payroll |
$5,000 bonus: Federal (22%) = $1,100 · Illinois (4.95%) = $247.50 · Social Security = $310 · Medicare = $72.50. Estimated net bonus = $3,270.
Moving to a no-income-tax state can save you thousands in state taxes, but factor in property tax, sales tax, and cost of living before deciding.
| State | Income Tax | Avg Property Tax Rate | Avg Sales Tax | Cost of Living Index |
|---|---|---|---|---|
| Illinois | 4.95% flat | 2.08% | 8.82% | 93.0 |
| Texas | 0% | 1.60% | 8.20% | 92.5 |
| Florida | 0% | 0.83% | 7.02% | 98.5 |
| Nevada | 0% | 0.53% | 8.23% | 104.7 |
| Tennessee | 0% | 0.64% | 9.55% | 88.5 |
Cost of Living Index: 100 = national average. Lower is cheaper.
The IL-W-4 form tells your employer how much Illinois state tax to withhold from your paycheck. Each Line 1 allowance you claim reduces your taxable wages by $2,925 per year (prorated per pay period) before applying the 4.95% rate — per the 2026 IL-700-T automated payroll method.
Use the calculator above to simulate how changing your allowances affects your net pay.
Chicago does not have a city income tax. Your Illinois state tax is the same as anywhere else in the state. However, Cook County sales tax is approximately 10.25%, and property taxes are higher than in most other Illinois counties.
Illinois has reciprocity agreements with Kentucky, Michigan, and Wisconsin. If you live in one of these states and work in Illinois, you generally only pay tax to your home state — file Form IL-W-5 to avoid Illinois withholding. Note: Illinois' reciprocity agreement with Iowa was terminated effective January 1, 2022. Iowa residents working in Illinois must file an Illinois non-resident return for Illinois-source income.
Illinois does not tax retirement income: pensions, 401(k) distributions, IRA withdrawals, and Social Security are all exempt from Illinois state income tax. This makes Illinois one of the most tax-friendly states for retirees despite the higher property taxes.
See how your paycheck changes through the year as you approach the Social Security wage base cap.
* Social Security tax (6.2%) stops once year-to-date earnings exceed $184,500 (2026 wage base).
See how changes to your allowances or deductions affect your per-period take-home pay.
* These are estimates. Actual results depend on your specific situation.
Illinois has a flat state income tax rate of 4.95% for 2026. This rate applies to all taxable income after pre-tax deductions and the personal exemption of $2,925 per person (IDOR FY 2026-15).
As of 2026, Illinois' minimum wage is $15.00 per hour for non-tipped workers, with tipped workers at $9.00 per hour. This does not directly affect the tax calculation but may affect gross pay for hourly workers.
Illinois state tax is calculated by subtracting the personal exemption ($2,925 × allowances, prorated per pay period) from your taxable gross pay, then multiplying the result by the flat 4.95% rate. This matches the automated payroll method in the 2026 IL-700-T booklet.
Your paycheck may increase mid-year because you hit the Social Security wage base limit ($184,500 in 2026). Once your year-to-date earnings exceed this cap, Social Security tax (6.2%) is no longer withheld from your remaining paychecks, increasing your net pay for the rest of the year.
Bonuses are considered supplemental wages. Illinois taxes bonuses at the same flat 4.95% rate, but federal withholding uses either the percentage method (22% flat rate for bonuses under $1 million) or the aggregate method (added to regular wages). Your net bonus depends on which method your employer uses.
The Social Security wage base for 2026 is $184,500 (SSA.gov). Earnings above this amount are not subject to Social Security tax (6.2%), but Medicare tax (1.45%) still applies to all wages with no cap.
No. Illinois does not tax retirement income, including pensions, 401(k) distributions, IRA withdrawals, and Social Security benefits. This makes Illinois one of the most tax-friendly states for retirees.
Each allowance you claim on your IL-W-4 Line 1 reduces your taxable wages by $2,925 annually (per the 2026 IL-700-T automated payroll method), before the 4.95% rate is applied. More allowances mean lower per-paycheck withholding and a larger take-home, but may result in a balance due when you file. Use the calculator to simulate the impact.
If you live in Illinois but work in another state, you may owe taxes to that state, but Illinois allows a credit for taxes paid to other states to avoid double taxation. Consult a tax professional for your specific situation.
If you live in another state but work in Illinois, you generally must pay Illinois income tax on income earned in Illinois. Illinois has reciprocity agreements with Kentucky, Michigan, and Wisconsin — residents of those states working in Illinois are typically taxed only by their home state. Note: The Iowa reciprocity agreement ended January 1, 2022; Iowa residents working in Illinois must file an Illinois non-resident return.
No, Chicago does not impose a city income tax. However, Cook County sales tax is approximately 10.25%, and property taxes are higher than in most Illinois counties. Your Illinois state tax rate remains the same regardless of where in Illinois you live or work.
Traditional 401(k) contributions are made pre-tax for both federal and Illinois state purposes, reducing your taxable income and lowering your withholding in both. However, they will be taxed when you withdraw them in retirement — though Illinois does not tax retirement income distributions, so qualified 401(k) withdrawals are Illinois-tax-free.
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is your gross pay minus federal income tax, Illinois state tax, FICA (Social Security and Medicare), and other deductions like health insurance or retirement contributions.
Illinois employers must pay employees at least semi-monthly. Most employers pay on a biweekly or semi-monthly schedule. The frequency does not change your annual tax liability, but it does affect the per-paycheck withholding amount.
Illinois follows federal overtime rules: non-exempt employees must be paid 1.5 times their regular rate for hours worked over 40 in a workweek. Overtime pay is subject to the same federal and Illinois tax withholdings as regular wages.