What is the Illinois state income tax rate in 2026?

Illinois imposes a flat personal income tax rate of 4.95% on net taxable income. The Illinois Constitution mandates a flat rate, so all income brackets pay the exact same 4.95% rate after basic personal exemptions.

Does the City of Chicago have a local city income tax?

No. Neither the City of Chicago nor Cook County levies a municipal personal income tax. Your state withholding is solely the 4.95% Illinois state tax.

What is the Illinois personal exemption amount for 2026?

For 2026, the standard basic exemption is estimated at $2,850 per taxpayer ($5,700 for married couples filing jointly). Taxpayers with adjusted gross income exceeding $250,000 (single) or $500,000 (married) are not eligible for the basic exemption allowance.

State of Illinois • Flat 4.95% Income Tax • No City Tax in Chicago

Illinois Paycheck Calculator 2026

Calculate your exact net salary in Chicago, Aurora, Naperville, and statewide across Illinois. Under the Illinois Constitution, individual income is taxed at a flat 4.95% rate after personal exemption allowances ($2,850 single / $5,700 married), with zero local city income tax.

Salary & Withholding Inputs

Live Compute

Annual Gross Salary or Wages ($)

Pre-tax total annual earnings in Illinois.

Pay Frequency

Filing Status

Pre-Tax Voluntary Deductions

401(k) Contribution (% of salary) 5%

2026 IRS contribution limit is $24,500.

Monthly Health Insurance Premium ($)

Illinois Flat Tax: Taxable net income after the basic exemption ($2,850 single / $5,700 married) is taxed at exactly 4.95%. Illinois has no local wage taxes in Chicago.

Estimated Take-Home Pay

$2,608.20

Per Bi-Weekly Paycheck (26x / year)

Annual Net Take-Home $67,813.25 67.8% of Gross

Effective Tax Rate 25.4%

Illinois State Tax 4.95% Flat

Chicago City Tax $0.00 (0%)

Comprehensive Payroll Deduction Breakdown Per Paycheck & Annual

Category	Per Paycheck	Annual Total	% Gross
Gross Pay	$3,846.15	$100,000.00	100.0%
401(k) Retirement Pre-Tax	-$192.31	-$5,000.00	5.0%
Pre-Tax Health Insurance	-$69.23	-$1,800.00	1.8%
Federal Income Tax (IRS)	-$473.08	-$12,300.00	12.3%
Social Security (6.2%)	-$238.46	-$6,200.00	6.2%
Medicare (1.45%)	-$55.77	-$1,450.00	1.5%
Illinois State Income Tax (4.95%)	-$174.52	-$4,537.67	4.5%
Net Take-Home Pay	$2,608.20	$67,813.25	67.8%

Midwest Tax Comparison

IL 4.95% vs IN 3.05%

Illinois taxes all income at a flat 4.95% rate. In neighboring Indiana, the state income tax is flat at 3.05% (plus county tax). In Wisconsin, income is taxed on a graduated scale from 3.5% up to 7.65%.

Total Illinois State Tax Due: $4,537.67 / year

Compare vs Texas (0%) →

Frequently Asked Questions: Illinois Paycheck Taxes

1. How does the flat 4.95% Illinois tax rate work?

Unlike federal taxes which use graduated progressive tax brackets, Illinois applies a single flat tax rate of 4.95% to all net taxable income (Form IL-1040). You calculate your adjusted gross income, subtract the basic personal exemption allowance ($2,850 for single or $5,700 for married), and multiply the remainder by 0.0495.

2. Do Chicago residents pay a city income tax?

No. Unlike New York City, Philadelphia, or Detroit, Chicago does not levy an additional local municipal income tax on employees. You only pay federal income tax, FICA, and Illinois state tax.

3. Does Illinois have state disability insurance (SDI) tax?

No. Unlike California, New Jersey, or New York, Illinois does not have a mandatory state disability insurance (SDI) deduction taken from your paycheck.