Illinois Paycheck Calculator

Illinois imposes a state income tax of 4.95%. Flat rate, no local income tax. Your actual Illinois tax liability depends on your filing status, deductions, and taxable income.

In addition to Illinois state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

Illinois is one of only a handful of states with a flat income tax rate, meaning all taxable income is taxed at the same 4.95% rate regardless of income level. The Illinois Department of Revenue administers state taxes. Prior to 2021, Illinois had a progressive tax system, but voters approved a constitutional amendment to switch to a flat rate.

Key Illinois Tax Features: Unlike most high-tax states, Illinois does not tax Social Security benefits for most retirees (exceptions apply for high-income filers with AGI above $100,000). The state also offers a property tax credit of up to $500 for homeowners and a Earned Income Tax Credit (EITC) for low-income workers. Illinois taxes capital gains as ordinary income at the flat 4.95% rate.

Local Taxes: Illinois does not impose local income taxes on wages, making Chicago and other municipalities relatively unique in not having a local income tax (unlike New York City or Philadelphia). However, local governments rely heavily on property taxes and sales taxes.

Business Environment: Illinois has a significant corporate franchise tax, but the state offers various economic development incentives. The Chicago metropolitan area is a major financial center and offers unique opportunities for professionals in finance, healthcare, and technology.

Illinois taxes all income at a flat 4.95% rate, with no local income taxes on wages. Chicago, the third-largest U.S. city, is a global financial center and transportation hub with the busiest airport in the world (by movements).