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How much is Illinois state income tax?

State & Local Taxesbeginner3 answers · 5 min readUpdated February 28, 2026

Quick Answer

Illinois state income tax is 4.95% of your gross income for 2026. On a $60,000 salary, you'll pay $2,970 annually in Illinois state income tax, or about $114 per biweekly paycheck. Unlike federal taxes, Illinois uses a flat rate regardless of income level.

Best Answer

SC

Sarah Chen, Payroll Tax Analyst

Best for typical employees living and working in Illinois

Top Answer

How much is Illinois state income tax?


Illinois charges a flat 4.95% state income tax rate on all income levels for 2026. This means whether you earn $30,000 or $300,000, you pay the same percentage rate — making Illinois one of only 9 states with a flat income tax structure.


Unlike federal income tax with progressive brackets, Illinois keeps it simple: multiply your gross income by 4.95% and that's your annual state tax liability.


Example: Illinois state tax on different salaries


Let's see how the 4.95% rate affects various income levels:



How Illinois state tax withholding works


Your employer calculates Illinois state tax withholding based on:

  • Your gross pay each period
  • Number of allowances claimed on Form IL-W-4
  • Filing status (single, married filing jointly, etc.)

  • The withholding is automatic — you don't need to make quarterly payments like self-employed individuals do.


    Key factors that affect your Illinois state tax


  • Income level: Higher income = higher total tax, but same 4.95% rate
  • Filing status: Affects standard deduction amount ($2,425 single, $4,850 married filing jointly for 2026)
  • Allowances claimed: More allowances = less withholding per paycheck
  • Additional income: Bonuses, overtime, and side income are all taxed at 4.95%

  • Illinois vs. federal tax withholding


    Unlike federal taxes where rates increase with income (10% to 37%), Illinois state tax remains constant at 4.95%. This means:

  • High earners pay a lower effective state rate compared to their federal rate
  • Lower earners pay a higher effective state rate compared to some federal brackets
  • Tax planning is simpler since the rate never changes

  • What you should do


    Check your most recent paystub to verify Illinois state tax is being withheld correctly. The amount should be approximately 4.95% of your gross pay for that period. If it seems too high or low, you may need to adjust your IL-W-4 form with HR.


    Use our paycheck calculator to see exactly how Illinois state tax affects your take-home pay based on your specific salary and deductions.


    Key takeaway: Illinois state income tax is a flat 4.95% of all income. On a typical $60,000 salary, expect about $114 deducted per biweekly paycheck for Illinois state taxes.

    Key Takeaway: Illinois charges a flat 4.95% state income tax on all income levels, making it one of the simplest state tax systems in the country.

    Illinois state tax amounts by salary level

    Annual SalaryIllinois State Tax (Annual)Per Biweekly PaycheckPer Monthly Paycheck
    $40,000$1,980$76.15$165
    $60,000$2,970$114.23$247.50
    $80,000$3,960$152.31$330
    $100,000$4,950$190.38$412.50
    $150,000$7,425$285.58$618.75

    More Perspectives

    SC

    Sarah Chen, Payroll Tax Analyst

    Best for people who moved to or from Illinois during the tax year

    Illinois state tax for new residents


    If you moved to Illinois mid-year, you'll need to file as a part-year resident and pay Illinois state tax only on income earned while living in Illinois.


    Illinois taxes all income earned by residents at 4.95%, including:

  • Wages from Illinois employers
  • Wages from out-of-state employers (if you're an Illinois resident)
  • Investment income, rental income, and business income

  • Pro-rating your Illinois tax liability


    When you move to Illinois, your employer should start withholding Illinois state tax from your next paycheck. However, you may need to file part-year returns in both your old state and Illinois.


    Example: If you moved to Illinois on July 1st with a $72,000 annual salary, you'd owe Illinois state tax on approximately $36,000 (6 months) = $1,782 in Illinois state tax for that year.


    Key considerations for new Illinois residents


  • Reciprocity agreements: Illinois has reciprocity with Iowa, Kentucky, Michigan, and Wisconsin — if you live in Illinois but work in these states, you may not owe Illinois tax on those wages
  • Double taxation: You might get credit for taxes paid to other states
  • Withholding adjustments: Update your IL-W-4 with your new employer immediately

  • Key takeaway: New Illinois residents pay 4.95% state tax on income earned while living in Illinois, with possible credits for taxes paid to other states during the same year.

    Key Takeaway: New Illinois residents pay the flat 4.95% rate only on income earned while living in Illinois, with potential credits for out-of-state taxes paid.

    SC

    Sarah Chen, Payroll Tax Analyst

    Best for people who live in Illinois but work remotely for out-of-state companies

    Illinois tax for remote workers


    If you live in Illinois but work remotely for an out-of-state company, you still owe Illinois state income tax at 4.95% on your wages. Illinois taxes its residents on all income regardless of where it's earned.


    Common remote work tax scenarios


    Scenario 1: You live in Illinois, work remotely for a California company

  • Your employer might not withhold Illinois state tax
  • You'll owe Illinois 4.95% on your full salary
  • You may need to make quarterly estimated payments
  • You might also owe California tax if they consider you a California employee

  • Scenario 2: You live in Illinois, work remotely for a company in a reciprocal state (Iowa, Kentucky, Michigan, Wisconsin)

  • Illinois has reciprocity agreements with these states
  • You may not owe Illinois tax on wages from these states
  • Check specific reciprocity rules as they can be complex

  • Managing withholding as a remote worker


    Many remote workers face underwithholding for Illinois state tax because their out-of-state employer doesn't withhold Illinois tax. To avoid a large tax bill:


  • Ask your employer to withhold Illinois state tax voluntarily
  • Make quarterly estimated tax payments to Illinois
  • Increase federal withholding to cover the state tax shortfall
  • Set aside 4.95% of each paycheck for Illinois taxes

  • Key takeaway: Illinois residents working remotely still owe 4.95% Illinois state tax on all income, regardless of where their employer is located, and may need to handle withholding manually.

    Key Takeaway: Illinois residents working remotely for out-of-state companies still owe 4.95% Illinois state tax and may need to handle withholding through estimated payments.

    Sources

    illinoisstate taxflat taxpaycheck deduction

    Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.

    How Much Is Illinois State Income Tax? (4.95% Rate) | ExplainMyPaycheck