Illinois Paycheck Calculator (2026)
Illinois keeps it simple: one flat rate, 4.95%, on (almost) every dollar of wage income. No brackets to climb, no bracket math at all — but that simplicity cuts both ways. A flat tax takes the same bite from dollar number one as from dollar number seventy-five thousand, which makes Illinois relatively heavier than progressive states for lower earners and lighter for high earners.
Check your own numbers in our US Take-Home Pay Calculator.
2026 Illinois income tax: flat 4.95%
Illinois taxes wage income at a single flat rate of 4.95% (2026; source: Tax Foundation, "2026 State Individual Income Tax Rates and Brackets," as of January 2026). Each filer gets a personal exemption of $2,925 (single; $5,850 married filing jointly) subtracted before the rate applies. There is no standard deduction beyond that.
Worked example: $75,000 salary, single filer, 2026
Federal (2026: $16,100 standard deduction, single; brackets per IRS Rev. Proc. 2025-32): taxable $58,900 → federal income tax $7,670 (10% × $12,400 = $1,240; 12% × $38,000 = $4,560; 22% × $8,500 = $1,870).
FICA: 6.2% × $75,000 = $4,650; 1.45% × $75,000 = $1,087.50 → $5,737.50 (under the 2026 $184,500 Social Security wage base).
Illinois: $75,000 − $2,925 exemption = $72,075 × 4.95%:
| Step | Calculation | Result |
|---|---|---|
| Illinois taxable income | $75,000 − $2,925 | $72,075 |
| Illinois tax | $72,075 × 4.95% | $3,567.71 → $3,568 |
| Amount | |
|---|---|
| Gross pay | $75,000 |
| Federal income tax | −$7,670 |
| FICA | −$5,738 |
| Illinois income tax | −$3,568 |
| Take-home | $58,024 |
Note the flat-tax effect: Illinois takes $3,568 here — more than progressive California's $2,941 at the same income, because California's low brackets shelter the first dollars. Flat taxes reverse that at high incomes.
What changes at $150,000
The same single filer at $150,000 in 2026: federal income tax $24,734 (taxable $133,900 → 10% × $12,400 = $1,240; 12% × $38,000 = $4,560; 22% × $55,300 = $12,166; 24% × $28,200 = $6,768) and FICA $11,475 ($9,300 Social Security + $2,175 Medicare — still under the $184,500 wage base).
| $75,000 salary | $150,000 salary | |
|---|---|---|
| Illinois income tax | $3,568 | $7,280 |
| Take-home | $58,024 | $106,511 |
The flat 4.95% takes nearly the same share at both incomes — which is exactly why flat taxes favor high earners relative to progressive states. At $150,000, Illinois is suddenly cheaper than California's graduated system.
Local taxes
Illinois cities do not levy local wage income taxes. Chicago funds itself other ways — nothing extra comes out of your paycheck for the city.
Final pay & PTO rules
In Illinois the deadline is the same either way: whether you're fired or you quit, your employer owes you everything — wages, bonuses, commissions — by the next regularly scheduled payday. If company policy promises paid vacation, the monetary value of your unused earned vacation must be included in that final check, and Illinois bans forfeiture of earned vacation. Illinois also has a statewide paid leave mandate: the Paid Leave for All Workers Act lets workers earn up to 40 hours of paid leave per year (one hour for every 40 hours worked), usable for any reason — you don't have to be sick.
Sources: Illinois Department of Labor — Wage Payment and Collection Act FAQ (820 ILCS 115/5) and Paid Leave for All Workers Act page (labor.illinois.gov). Checked 2026-10-10.
FAQ
Is a flat tax better or worse than brackets? It depends on income. At $75,000, Illinois's flat 4.95% costs more than California's progressive system ($3,568 vs. $2,941). At $500,000, the flat rate wins by a lot. There's no universal answer — run your income level.
Does the $2,925 exemption apply per person? Yes — it's a personal exemption: $2,925 for single filers, $5,850 for married filing jointly (2026). Each dependent adds more, but the wage-earner math above uses the single figure.
Can Illinois raise the flat rate easily? The rate is set by statute, and Illinois's constitution requires a flat (non-graduated) income tax — a 2020 ballot measure to allow progressive rates failed. So the structure is stable; only the rate number can move, and that takes legislation.
How are Illinois bonuses withheld? Illinois applies the same 4.95% to supplemental wages — no special bonus rate. Federal supplemental withholding (22%) still applies on top. See our bonus guide.
I work in Chicago but live in Indiana. Where do I pay? Illinois taxes the wages where the work is performed; Indiana credits you for tax paid to Illinois. You'll file in both states — the credit prevents double taxation.
Could Illinois switch to a graduated tax? It would take a constitutional amendment — Illinois's constitution requires a flat, non-graduated income tax, and a 2020 ballot measure to allow progressive rates failed. The structure is stable; only the 4.95% rate itself can move, and that takes legislation.
Does Illinois tax retirement income? Notably, no — Illinois exempts most retirement income (pensions, 401(k) and IRA distributions, Social Security) from the state tax. It's one reason retirees tolerate the flat 4.95% on wages: the bite stops when the paychecks do. (Federal tax on retirement income still applies.)
Data sources
- State: Tax Foundation, "2026 State Individual Income Tax Rates and Brackets" (as of January 2026) — flat 4.95%, $2,925/$5,850 exemption — as implemented in this site's calculator.
- Federal: IRS Rev. Proc. 2025-32 (IR-2025-103, Oct 9, 2025); 2026 standard deduction $16,100 single.
- FICA: SSA 2026 — 6.2% to $184,500 wage base; 1.45% Medicare.
Estimates only, not tax advice.