Illinois Take-Home Pay Calculator
4.95% flat rateEstimate your net paycheck after federal taxes, FICA, and Illinois state income tax.
Last updated: April 2026
Illinois Income Tax
Illinois has a flat 4.95% income tax rate, constitutionally mandated to be uniform.
Illinois State Income Tax: What You Need to Know
Illinois has a flat 4.95% income tax rate, constitutionally mandated to be uniform.
Illinois has a constitutionally mandated flat income tax — Article IX of the Illinois Constitution requires a 'non-graduated' rate, meaning every taxpayer pays 4.95% regardless of how much they earn. A 2020 ballot measure to amend the constitution and allow graduated brackets failed with 55% of voters opposed, cementing the flat rate for the foreseeable future. Despite the mid-range flat rate, Illinois workers face one of the highest total state-and-local tax burdens in the country when property taxes and sales taxes are included — Illinois property taxes rank among the highest nationally, and the combined state+local sales tax averages 8.55%. One notable advantage: Illinois exempts virtually all retirement income from state income tax, including Social Security benefits, pension distributions, 401(k) and IRA withdrawals, and military retirement pay. This makes Illinois significantly more attractive for retirees despite the 4.95% rate on wages. Illinois allows a personal exemption of $2,425 per taxpayer and $2,425 per dependent, but has no standard deduction analogous to the federal system. Chicago does not impose a city income tax on wages — residents of Chicago pay only state (4.95%) and federal taxes on their earned income, though Chicago's overall cost of living is high due to property taxes, sales taxes, and various city fees. Workers in the city of Chicago should note that Chicago's combined sales tax rate can exceed 10.25% in some parts of the city.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Illinois's 4.95% flat rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Illinois Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $1,980 | $3,060 | $31,793 |
| $60,000 | $6,617 | $2,970 | $4,590 | $45,823 |
| $80,000 | $10,817 | $3,960 | $6,120 | $59,103 |
| $100,000 | $15,617 | $4,950 | $7,650 | $71,783 |
Frequently Asked Questions: Illinois Taxes
Why is Illinois income tax constitutionally required to be flat?
Article IX, Section 3(a) of the Illinois Constitution of 1970 requires a 'non-graduated' income tax rate — meaning every taxpayer must pay the same percentage regardless of income. Illinois cannot legally have progressive brackets like most states. In November 2020, Illinois voters rejected the 'Fair Tax' constitutional amendment that would have allowed graduated rates (58 to 42% against), cementing the flat structure. Every earner from minimum wage to millionaire pays the same 4.95% on their Illinois taxable income.
Does Chicago have a city income tax?
No. Chicago does not impose a personal income tax on wages, and neither does any other Illinois city. Chicago residents pay only Illinois state income tax (4.95%) and federal income tax on earned wages — no local withholding layer. This is notable because Chicago is one of the few large US cities without a city income tax; New York City, Philadelphia, Detroit, and Baltimore all charge additional city taxes. However, Chicago's high property taxes, sales taxes (10.25%+ combined in parts of the city), and various city fees make the overall cost of living significantly higher than the income tax rate alone suggests.
What is Illinois minimum wage in 2026?
Illinois minimum wage is $15.00/hour in 2026, having reached this level on January 1, 2025, after a phased-in increase that started at $8.25/hour in 2019. Chicago's minimum wage is $16.20/hour as of July 2025, and Cook County (outside Chicago) follows a separate schedule as well. The $15.00 statewide floor is one of the higher state minimums in the Midwest, significantly above Indiana ($7.25), Missouri ($12.30), and Wisconsin ($7.25).
How does Illinois tax retirement income?
Illinois is one of the most retirement-friendly states for income tax purposes. Illinois completely exempts Social Security benefits, pension payments (both public and private), 401(k) and IRA distributions, military retirement pay, and most other retirement income from state income tax. This means retirees drawing down retirement accounts in Illinois pay 0% state income tax on those distributions, even though working Illinoisans pay 4.95% on wages. For a retiree withdrawing $60,000 from a 401(k), the Illinois exemption saves about $2,970 in state taxes annually compared to a state that taxes all retirement income.
Does Illinois allow a standard deduction?
No. Illinois does not have a standard deduction like the federal system — there is no baseline deduction from income before the 4.95% rate applies. However, Illinois allows a personal exemption of $2,425 per taxpayer and $2,425 per qualifying dependent for 2026. This is modest compared to the federal $15,000 standard deduction. Because Illinois starts taxing essentially from the first dollar (after the small exemption), lower-income workers face a higher effective state tax rate relative to their income than in states with larger deductions or lower-income exemptions.
What is the take-home pay on an $80,000 salary in Illinois?
A single filer earning $80,000 in Illinois takes home approximately $59,103 per year after federal income tax ($10,817), Illinois state tax ($3,960 at 4.95%), Social Security ($4,960 at 6.2%), and Medicare ($1,160 at 1.45%). The total tax withholding is about $20,897 — an effective combined rate of roughly 26.1%. This does not include any county, municipal, or health insurance deductions. Chicago residents should note that while there is no city income tax, Chicago's high property and sales taxes effectively increase the total cost of living above the paycheck deduction picture.