IL

Illinois Paycheck Calculator

See exactly what you take home after federal taxes, Illinois state income tax, Social Security, and Medicare. Updated for 2026.

State tax: 4.95% SS: 6.2% Medicare: 1.45% 2026 brackets
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1099 freelancer note: You owe both halves of Social Security & Medicare — that's 15.3% self-employment tax on top of income tax. Quarterly estimated payments due Apr 15, Jun 16, Sep 15, Jan 15.
Illinois state income tax (2026) Illinois uses a flat 4.95% income tax rate — a constitutional requirement.
Flat 4.95% on all taxable income

Illinois Income Tax Explained (2026)

Illinois has a state income tax with a flat 4.95% structure. Workers earning typical wages generally pay an effective state rate between 2.5% and 5.0% depending on income and deductions. Understanding how Illinois's tax works helps you accurately predict your take-home pay and plan your withholding.

Illinois residents also pay federal income tax (10%–37%), Social Security (6.2% up to $184,500), and Medicare (1.45%). The combination of federal and state taxes is the primary driver of the gap between your gross pay and your actual paycheck.

How Illinois compares to neighboring states

Indiana
3.15% flat
Much lower
Missouri
4.8% top rate
Similar
Wisconsin
Up to 7.65%
Higher top rate
Iowa
Up to 5.7%
Higher top rate

What taxes come out of a Illinois paycheck?

A Illinois W-2 employee's paycheck is reduced by federal income tax (progressive 10%–37%), Illinois state income tax (flat 4.95%), Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45% on all wages. High earners above $200,000 also pay an additional 0.9% Medicare surtax on excess wages.

Illinois freelancers and 1099 contractors pay self-employment tax of 15.3% — covering both employee and employer portions of Social Security and Medicare — on top of both federal and state income taxes. Half of the self-employment tax is deductible from federal adjusted gross income, reducing the effective burden slightly. Illinois freelancers must also make quarterly estimated state tax payments.

Illinois tax tips for 2026

  • Flat rate: Illinois has a constitutionally mandated flat income tax of 4.95% on all net income. Every taxpayer pays the same rate regardless of income level.
  • No standard deduction: Illinois does not use a standard deduction. Instead, Illinois allows a personal exemption of $2,425 per person (2026), which is much smaller than the federal standard deduction.
  • City taxes: Chicago levies a 3% city income tax (the Chicago personal property replacement tax doesn't apply to individuals, but the city has other income-related taxes on businesses).
  • Retirement exemption: Illinois exempts virtually all retirement income from state tax — Social Security, pension income, and IRA/401(k) distributions are all exempt. This makes Illinois highly attractive for retirees despite its income tax.

Frequently asked questions

Illinois has a flat 4.95% individual income tax rate, which is constitutionally required to be the same for all taxpayers. Illinois's constitution prohibits a graduated income tax unless amended by voter referendum. The state has considered but not adopted a progressive tax system. Illinois also has a personal exemption of $2,425 per person.
For an Illinois resident earning $75,000, after the $2,425 personal exemption, taxable income is ~$72,575. At 4.95%, state tax is approximately $3,593. Combined with federal tax (~$10,294), Social Security ($4,650), and Medicare ($1,088), total deductions are ~$19,625. Take-home is approximately $55,375/year or ~$2,130 bi-weekly.
Illinois is one of the most retirement-friendly states despite having a 4.95% income tax rate. Illinois exempts virtually all retirement income from state taxation: Social Security, distributions from qualified retirement plans (401k, IRA, pension), military retirement pay, and railroad retirement income are all completely exempt. Illinois retirees effectively pay 0% state income tax on most or all of their retirement income.
Chicago does not levy a traditional personal income tax on wages. However, Chicago and Cook County have higher sales taxes (Chicago's combined rate is about 10.25%), and there are various business taxes. For wage earners, the primary tax burden is the Illinois flat income tax of 4.95% with no additional city income tax on wages.
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