ILLINOIS PAYCHECK CALCULATOR
Illinois is one of only about a dozen states that tax every dollar of income at the exact same rate, whether you make $35,000 or $350,000. That rate is 4.95%, and it hasn’t moved since 2017, mostly because voters rejected a switch to graduated rates back in 2020. Whatever your salary, the state cut is the same percentage.
A paycheck in Illinois gets trimmed by four things: federal income tax, the flat 4.95% state tax, Social Security, and Medicare. That’s it. Unlike Ohio or Pennsylvania, there’s no local city or county income tax layered on top, and unlike California or New York, there’s no state disability insurance premium coming out of your check either. If you’re comparing offers or thinking about a move, it’s worth lining Illinois up against its neighbors: check the Indiana paycheck calculator, the Wisconsin paycheck calculator, the Missouri paycheck calculator, or the Iowa paycheck calculator to see how the math shifts once you cross the border.
Every Deduction on an Illinois Paycheck
- Federal income tax: Based on the 2026 IRS brackets (10% to 37%) and your filing status, after subtracting the federal standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household).
- Illinois state income tax (4.95%): A flat rate applied to your base income after subtracting the $2,925 personal exemption per person (2026 tax year). No brackets, no tiers.
- Social Security (6.2%): Withheld on wages up to the 2026 wage base of $184,500. Anything you earn above that isn’t taxed for Social Security.
- Medicare (1.45%, plus 0.9% above certain thresholds): Withheld on all wages with no cap. An extra 0.9% kicks in on wages above $200,000 (single/head of household) or $250,000 (married filing jointly).
- What’s absent: No state disability insurance, no paid family leave payroll tax, and no city or county income tax anywhere in Illinois, including Chicago.
How Illinois Got to a Flat 4.95%
Illinois hasn’t always sat at 4.95%. The rate has moved around more than most people realize, and each change came from a specific budget fight in Springfield.
| Year | Flat Rate | What happened |
|---|---|---|
| Pre-2011 | 3.00% | Illinois held a flat 3% rate for years before the state’s pension shortfall forced lawmakers to act. |
| 2011 | 5.00% | Lawmakers nearly doubled the rate to address the pension crisis, with the increase framed as temporary. |
| 2015 | 3.75% | Part of the temporary hike expired on schedule, and the rate rolled back down. |
| 2017 | 4.95% | The legislature raised the rate again and made it permanent this time, where it has stayed ever since. |
| 2020 | 4.95% (unchanged) | Voters rejected a constitutional amendment that would have replaced the flat rate with graduated brackets running roughly from 4.75% to 7.99%. The measure failed 53.4% to 46.6%. |
Because that 2020 measure failed, Illinois’ constitution still requires a single flat rate for everyone. Another attempt to switch to graduated brackets would need its own statewide vote, so barring that, 4.95% is the number to plan around for the foreseeable future.
A quieter change: the grocery tax is gone
Separate from income tax, Illinois eliminated its statewide 1% grocery tax effective January 1, 2026. That tax used to apply to most food bought for home consumption. The catch is that many local governments have opted to keep charging their own local grocery tax in its place, so the actual difference at checkout depends on where you shop.
Illinois vs. Its Neighbors: $70,000 Salary, Single Filer
Here’s how a flat-out $70,000 salary shakes out state-by-state for a single filer in 2026, using each state’s standard deduction or exemption and current-year brackets.
| State | State Tax Structure | Est. State Tax Owed | Est. Net Pay (state tax removed only) |
|---|---|---|---|
| Illinois | Flat 4.95% | ~$3,320 | ~$66,680 |
| Indiana | Flat 2.95% (plus county tax in most counties) | ~$2,036 | ~$67,964 |
| Wisconsin | Progressive, 3.50%–7.65% | ~$2,400 | ~$67,600 |
| Missouri | Progressive, 2%–4.7% | ~$2,350 | ~$67,650 |
| Iowa | Flat 3.8% (dropping to 3.5% in 2027) | ~$2,510 | ~$67,490 |
Illinois comes out as the highest state income tax bill of this group at $70,000, mostly because its flat 4.95% rate applies from the first taxable dollar, while Wisconsin, Missouri, and Indiana all shelter more income up front through larger exemptions or lower entry rates. Indiana’s county-level tax isn’t included here since it varies by where you live, so an Indiana resident’s real number could land closer to Illinois once that’s added in.
The Trade-Off: Income Tax vs. Everything Else
| Category | Illinois | National Average |
|---|---|---|
| Income tax | Flat 4.95% (moderate for a working household, high for lower earners since there are no brackets to ease into) | Varies widely; many states graduate from 0% to 5%+ |
| Sales tax (avg. combined) | 8.96%, 8th-highest in the country | ~7.5% |
| Property tax (effective rate) | 1.88%, among the highest in the Midwest | ~0.9%–1.0% |
| Estate tax | Yes, above a $4,000,000 exemption, rates up to 16%, no portability between spouses | Most states have none |
The honest picture: Illinois isn’t punishing on income tax specifically, especially for higher earners who’d pay more under a graduated system elsewhere. Where it adds up is property tax and sales tax, both of which sit well above the national norm. A renter with no major purchases feels Illinois very differently than a homeowner in Cook County.
Retirees: Illinois’s Best-Kept Secret
If there’s one group Illinois treats better than almost anywhere else, it’s retirees. Social Security benefits, pension income (public or private), and withdrawals from 401(k)s and IRAs are all fully exempt from Illinois income tax. That’s the same treatment you’d get in a no-income-tax state like Florida, just without giving up Illinois’s other services and infrastructure. The trade-off shows up again in property tax: a retiree who owns a home outright still faces one of the higher effective property tax rates in the country, so the benefit is largest for retirees who rent or who’ve already downsized.
Federal Tax: A Worked Example
Federal tax is calculated the same way in every state; Illinois just adds its flat rate on top. Here’s the federal math for a single filer earning $70,000 in 2026.
| Gross income | $70,000 |
| Minus 2026 standard deduction (single) | −$16,100 |
| Taxable income | $53,900 |
| 10% on the first $12,400 | $1,240.00 |
| 12% on the next $38,000 ($12,400–$50,400) | $4,560.00 |
| 22% on the remaining $3,500 ($50,400–$53,900) | $770.00 |
| Total federal tax | $6,570.00 |
| Effective federal rate | 9.4% of gross income |
Add Illinois’s flat 4.95% on top (roughly $3,320 after the personal exemption), plus FICA, and total withholding on that $70,000 salary lands around $15,245, leaving close to $54,755 in take-home pay before any pre-tax deductions like a 401(k) or health premiums.
Frequently Asked Questions
What is the Illinois paycheck tax rate in 2026?
Illinois withholds a flat 4.95% state income tax on every paycheck, no matter how much you earn. There are no brackets. On top of that, employers withhold federal income tax, 6.2% Social Security up to $184,500 of wages, and 1.45% Medicare.
Does Illinois have a standard deduction?
No. Illinois does not use a standard deduction like the federal system. Instead it applies a personal exemption of $2,925 per person for the 2026 tax year, which is subtracted from your base income before the 4.95% rate is applied.
Are there local income taxes in Illinois, like in Chicago?
No. Illinois is one of the states that does not allow cities or counties to add their own income tax on top of the state rate. Chicago residents pay the same 4.95% state rate as anyone else in Illinois; Chicago’s extra costs come from sales tax and other municipal fees, not a payroll tax.
Does Illinois tax Social Security and retirement income?
No. Illinois does not tax Social Security benefits, pension income, or withdrawals from 401(k)s and IRAs. This makes Illinois one of the more retirement-friendly states on the income tax side, even though its flat rate is the highest of any flat-tax state.
Why is Illinois’s flat tax rate 4.95% instead of graduated brackets?
The Illinois Constitution requires a flat rate. In November 2020, voters rejected a ballot measure that would have allowed a graduated income tax with rates ranging roughly from 4.75% to 7.99% based on income. Because that measure failed, the flat 4.95% rate set in 2017 remains locked in unless voters approve another constitutional amendment.
Is Illinois a high tax state overall?
Illinois’s income tax rate is moderate compared to states with graduated brackets, but its property taxes and sales taxes push its overall burden higher. The Tax Foundation ranks Illinois 38th out of 50 states on its 2026 State Tax Competitiveness Index, driven mainly by the state’s property tax load and one of the highest average combined sales tax rates in the country.
The Bottom Line
Illinois asks the same 4.95% of everyone’s paycheck, which is straightforward but not necessarily light, especially early in your career when a graduated state would ease you in at a lower rate. Where Illinois genuinely stands out is on the back end: no local income taxes to track, no state disability premium eating into your check, and full protection for retirement income once you get there. Whether that trade nets out in your favor depends less on your salary and more on whether you own property and how much you spend at the register.