Illinois Paycheck Calculator 2026
Working in Chicago, Aurora, or Naperville — see what Illinois's flat tax actually leaves in your paycheck.
Calculate your Illinois take-home pay per paycheck for 2026. Illinois taxes wages at a flat 4.95% after $2,925 per exemption allowance — no standard deduction, no brackets, and no city income tax anywhere in the state. Combined with 2026 IRS federal brackets and FICA.
Single filer, one exemption allowance, 2026 rates. Actual withholding varies with your W-4 and IL-W-4.
How Illinois paycheck tax is calculated in 2026
One flat rate, one simple formula
Illinois is one of the simplest states to compute: state tax = (gross pay − pre-tax deductions − $2,925 × exemption allowances) × 4.95%. There are no brackets, no standard deduction, and no phase-outs. Worked example on $70,000 with one exemption: ($70,000 − $2,925) × 4.95% = $3,320 per year, about $128 per bi-weekly paycheck. Source: Illinois Department of Revenue.
Stacked on top of federal
Your paycheck also loses federal income tax (2026 IRS brackets after the $16,100 single / $32,200 married standard deduction) and FICA — Social Security at 6.2% up to the $184,500 wage base and Medicare at 1.45% (plus 0.9% over $200,000). On $70,000 the full stack is $6,570 federal + $5,355 FICA + $3,320 Illinois = $15,245, leaving $54,755 take-home.
Illinois flat tax vs graduated: the 2020 amendment and what it means for your paycheck
The constitution requires a flat rate
The Illinois Constitution mandates a single income tax rate for all individuals — currently 4.95%, in place since July 2017. In November 2020 voters rejected the proposed "Fair Tax" constitutional amendment that would have allowed graduated brackets, so a minimum-wage worker in Aurora and a trading-desk MD in the Loop pay the same marginal state rate. For paycheck math this means your Illinois withholding scales exactly linearly with income — double the salary, double the state tax (minus the fixed exemption effect).
How Illinois compares in 2026
| State | 2026 wage income tax | State tax on $100,000 |
|---|---|---|
| Illinois | Flat 4.95% after $2,925/exemption | $4,805 (1 exemption) |
| Texas | None | $0 |
| Florida | None | $0 |
| Arkansas | Graduated, top 3.7% (cut retroactive to Jan 1, 2026) | ~$3,529 |
The trade-off cuts both ways: Illinois's flat rate is higher than many states at modest incomes, but at very high incomes 4.95% undercuts graduated states whose top brackets run to 9-13%.
How the $2,925 Illinois exemption allowance works on Form IL-W-4
No standard deduction — allowances instead
Unlike the federal system, Illinois has no standard deduction. The only broad shield is the exemption allowance: $2,925 per exemption in 2026 (indexed annually — per the Illinois Comptroller's 2026 payroll bulletin). You claim allowances on Form IL-W-4, separate from your federal W-4: typically one for yourself, one for a spouse, and one per dependent. Each allowance trims your Illinois tax by $2,925 × 4.95% ≈ $145 per year — about $5.60 per bi-weekly paycheck.
Allowances on a $70,000 salary
| Allowances claimed | Illinois tax/year | Per bi-weekly check | Saved vs 0 |
|---|---|---|---|
| 0 | $3,465 | $133 | — |
| 1 | $3,320 | $128 | $145 |
| 2 | $3,175 | $122 | $290 |
| 3 | $3,031 | $117 | $434 |
| 4 | $2,886 | $111 | $579 |
Claiming too many allowances under-withholds and leaves a balance due on your IL-1040 in April; too few hands the state an interest-free loan until your refund.
Why Chicago paychecks skip the city income tax other big metros charge
Zero municipal income tax — statewide
No Illinois municipality levies an income tax on wages. A software engineer in the Loop, a nurse at a Naperville hospital, and a warehouse lead in Aurora all see the identical income tax stack: federal + FICA + flat 4.95% state. Compare that with New York City (3-3.876% resident city tax) or Philadelphia (3.75% wage tax) — on a $100,000 salary a Chicago worker avoids thousands in municipal income tax that a same-salary NYC worker pays.
Chicago-area paycheck context
The metro's anchor employers — United Airlines and McDonald's downtown, Abbott and Walgreens in the northern suburbs — withhold the same flat 4.95% regardless of office location. What differs across the metro is not income tax but property and sales taxes, which never touch your paycheck. Cross-border commuters are the exception: Illinois has withholding reciprocity with neighboring states (Iowa, Kentucky, Michigan, Wisconsin), so residents of those states working in Illinois generally pay their home state instead — check your payroll setup if you commute across the border.
Illinois take-home pay by salary 2026
Single filer, one exemption allowance, no pre-tax deductions
2026 federal brackets and $16,100 standard deduction; Illinois flat 4.95% after one $2,925 exemption.
| Gross salary | Federal tax | FICA | Illinois tax | Net annual | Net monthly |
|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,835 | $32,485 | $2,707 |
| $50,000 | $3,820 | $3,825 | $2,330 | $40,025 | $3,335 |
| $70,000 | $6,570 | $5,355 | $3,320 | $54,755 | $4,563 |
| $85,000 | $9,870 | $6,503 | $4,063 | $64,565 | $5,380 |
| $100,000 | $13,170 | $7,650 | $4,805 | $74,375 | $6,198 |
| $150,000 | $24,734 | $11,475 | $7,280 | $106,511 | $8,876 |
| $200,000 | $36,734 | $14,339 | $9,755 | $139,172 | $11,598 |
Reading the table
Because the Illinois rate is flat, the state column grows in a straight line — 4.95 cents of every extra dollar above your exemptions. The curve in your total tax comes entirely from the federal brackets: between $85,000 and $150,000 each extra dollar loses 22-24% federally plus 4.95% to Springfield plus 7.65% FICA, a combined marginal bite of roughly 35%.
Illinois exempts retirement income — what that means while you're still earning
The other side of the flat tax
Illinois fully exempts retirement income from state tax: Social Security benefits, 401(k) and IRA distributions, and qualified public and private pensions all escape the 4.95%. That makes traditional (pre-tax) 401(k) contributions unusually attractive for Illinois workers — you skip 4.95% state tax on the way in and pay 0% Illinois tax on the way out if you retire in-state. Few states offer that double exemption.
Traditional vs Roth through an Illinois lens
The usual traditional-vs-Roth debate weighs today's rate against retirement's rate. In Illinois the state layer tilts traditional: a Roth contribution pays 4.95% state tax now for no state benefit later (withdrawals would have been state-tax-free anyway). On a $10,000 contribution that tilt is worth $495 per year. Federal considerations still dominate, but the state layer is a genuine thumb on the scale.
How Illinois taxes bonuses, overtime, and supplemental wages
Bonuses: flat on flat
Illinois withholds supplemental wages (bonuses, commissions, severance) at the same flat 4.95% — because the state has only one rate, there is no separate supplemental schedule to worry about. Federally, most employers use the 22% flat supplemental method (up to $1 million). Stack in FICA and a $5,000 bonus paid in Illinois typically sees about $1,730 withheld: $1,100 federal + $383 FICA + $248 Illinois.
Overtime is not taxed extra
Overtime hours are withheld like any other wages — there is no higher rate for overtime in Illinois or federally. A big overtime week can be over-withheld federally because withholding tables annualize each check, but the flat Illinois layer stays exactly proportional: 4.95 cents per extra dollar, every time. Any federal over-withholding comes back at filing.
401(k), HSA, and insurance: cutting the Illinois 4.95% base
Illinois starts from federal AGI
Illinois base income begins with your federal adjusted gross income, so anything that reduces federal AGI — traditional 401(k) deferrals (2026 limit $24,500), HSA contributions ($4,400 single / $8,750 family), and pre-tax insurance premiums — also shrinks the 4.95% Illinois base. Every $1,000 diverted pre-tax saves $49.50 in Illinois tax on top of the federal saving at your bracket.
Worked example: 10% into a 401(k) on $85,000
Deferring $8,500 pre-tax drops federal taxable income into a smaller 22%-bracket slice and cuts the Illinois base by the same $8,500. Combined saving ≈ $8,500 × (22% + 4.95%) = $2,290 per year — the paycheck only drops by about $6,210, not $8,500. FICA is the exception: 401(k) deferrals do not reduce Social Security or Medicare tax, though payroll HSA contributions do.
Frequently asked Illinois paycheck questions
How much Illinois state tax comes out of my paycheck in 2026?
Illinois taxes wages at a flat 4.95% after subtracting $2,925 per exemption allowance. On a $70,000 salary with one exemption: ($70,000 − $2,925) × 4.95% = $3,320 per year, or about $128 per bi-weekly paycheck.
Is Illinois income tax flat or graduated?
Flat. Every Illinois taxpayer pays the same 4.95% rate on net income regardless of earnings. The Illinois Constitution requires a flat rate — the 2020 ballot amendment to allow graduated rates was rejected by voters, so wages from $30,000 to $3 million are all taxed at 4.95%.
What is the Illinois exemption allowance for 2026?
$2,925 per exemption for 2026, per the Illinois Comptroller's payroll bulletin. Illinois has no standard deduction — exemption allowances are the only broad income shield. Each allowance claimed on Form IL-W-4 reduces your Illinois tax by about $145 per year, roughly $5.60 per bi-weekly paycheck.
Does Chicago have a city income tax on wages?
No. Chicago does not levy a city income tax on wages, and neither do Aurora, Naperville, or any other Illinois municipality. Unlike New York City or Philadelphia, working in downtown Chicago adds no extra income tax layer — you pay only the flat 4.95% state rate plus federal tax and FICA.
Is retirement income taxed in Illinois?
No. Illinois fully exempts retirement income from state tax — Social Security benefits, 401(k) and IRA distributions, and qualified pension income are all untaxed by Illinois. The 4.95% applies to wages while you work, but not to retirement withdrawals later.
How are bonuses taxed in Illinois?
Illinois withholds a flat 4.95% on bonuses — identical to regular wages, because the state rate is flat. Federally, bonuses are typically withheld at the 22% supplemental rate (up to $1 million), and FICA applies as usual. A $5,000 bonus in Illinois loses roughly $1,730 to combined withholding.
How much is the take-home on a $70,000 salary in Illinois?
Around $54,755 per year for a single filer with one exemption in 2026 — $2,106 per bi-weekly paycheck. That reflects $6,570 federal income tax, $5,355 FICA ($4,340 Social Security + $1,015 Medicare), and $3,320 Illinois state tax.
Does a pre-tax 401(k) reduce Illinois state tax?
Yes. Illinois base income starts from federal AGI, so traditional 401(k), HSA, and pre-tax insurance contributions reduce both your federal taxable income and the 4.95% Illinois base. Contributing $10,000 pre-tax saves $495 in Illinois tax on top of the federal saving.
How does Illinois compare with no-income-tax states like Texas and Florida?
Texas and Florida levy no state income tax on wages, so a $100,000 earner keeps about $4,805 more per year there than in Illinois (single, one exemption). Arkansas cut its top rate to 3.7% retroactive to January 1, 2026 — about $3,529 on $100,000 — still below Illinois's flat 4.95%.
What form controls Illinois paycheck withholding?
Form IL-W-4, the Employee's Illinois Withholding Allowance Certificate. It sets how many $2,925 exemption allowances your employer applies — separate from the federal W-4. Update it after marriage, a new dependent, or a second job to avoid over- or under-withholding Illinois tax.
Where these figures come from
Every rate, allowance, and threshold on this page is taken directly from the 2026 source of record — the Illinois Department of Revenue, the Illinois Comptroller, the Internal Revenue Service (IRS), and the Social Security Administration (SSA).
- Illinois 2026 exemption allowance ($2,925) — Illinois Comptroller — 2026 State Income Tax Exemptions Payroll Bulletin.
- Illinois flat 4.95% rate & withholding rules — Illinois Department of Revenue.
- 2026 federal brackets & standard deduction — IRS — Tax Inflation Adjustments for Tax Year 2026 (Rev. Proc. 2025-32).
- Social Security wage base ($184,500 in 2026) — SSA — Contribution and Benefit Base.
- FICA rates (6.2% + 1.45%) — IRS Topic 751 — SS & Medicare Withholding.
- State income tax comparisons — Tax Foundation — State Individual Income Tax Rates.
Last checked: July 2026. Illinois indexes the exemption allowance annually; figures are re-verified against the Comptroller's payroll bulletin each January.
Select the question that matches where you are right now.
Your result is the per-paycheck amount that lands in your bank account after federal income tax, FICA, and Illinois's flat 4.95% state tax — using 2026 rates for all three layers.
Compare a Chicago offer against one in another state, check whether your IL-W-4 allowances match your situation, or see how a raise flows through Illinois's linear tax math.
Not a pay stub. Actual withholding depends on your federal W-4 and Illinois IL-W-4 elections, benefits enrollment, and your employer's payroll engine.
Uses the Illinois flat 4.95% rate, the 2026 $2,925 exemption allowance, 2026 IRS brackets, and FICA rates. All calculations run in your browser — nothing is sent to any server.
In Illinois the state layer is fixed and predictable — the moving parts of your paycheck are almost entirely federal.
Illinois takes 4.95 cents of every dollar above your exemption allowances — no brackets, no cliffs. Your exemption count on Form IL-W-4 is the only state-side lever.
Federal brackets (10-37% in 2026) create the real progression in your total tax. Between $50,400 and $105,700 of taxable income you sit in the 22% bracket — a combined 26.95% marginal rate with Illinois.
Traditional 401(k), HSA, and pre-tax insurance reduce both federal taxable income and the Illinois base. HSA payroll contributions also skip FICA — the only deduction that dodges all three layers.
You cannot negotiate the 4.95%, but you can shrink the base it applies to and stop over-withholding.
Claiming the exemption allowances you are actually entitled to is free money in every paycheck — each one is worth about $145 a year at the 2026 allowance level.
Every $1,000 into a traditional 401(k) saves 4.95% state plus your federal bracket — and Illinois won't tax the withdrawals in retirement either, a double exemption few states match.
The state side is flat and hard to get wrong; big refunds or surprise bills almost always come from the federal W-4. The IRS Tax Withholding Estimator finds the right settings.
Paycheck math connects to your federal tax picture, retirement strategy, and cross-state comparisons.
See your complete federal tax position including effective and marginal rates.
Income tax calculator →Project what those state-and-federal-saving contributions become by retirement.
401k calculator →Model take-home with a custom state rate for offers outside Illinois.
US paycheck calculator →