Illinois has a flat 4.95% state income tax rate, making it moderately taxed compared to other Midwestern states. Our free Illinois paycheck calculator shows your exact take-home pay after federal taxes, Illinois state tax, and FICA deductions. Whether you're considering a move to the Prairie State, comparing job offers in Chicago, or budgeting your current Illinois salary, get accurate results based on 2025 tax rates.
Illinois Tax System Overview
Illinois uses a flat income tax system with these key features:
- Flat State Tax Rate: 4.95% on all income levels
- Standard Exemption: $2,375 personal exemption (single), $4,750 (married)
- Additional Exemptions: $2,375 per dependent
- No Local Income Tax: Municipalities cannot impose income taxes
- High Property Taxes: Among the highest property tax rates in the nation
Sample Illinois Paycheck Calculations
Here's how much you'll take home at different salary levels in Illinois:
$60,000 Annual Salary
- Gross Pay: $60,000
- Federal Tax: $6,437
- IL State Tax: $2,970
- FICA Taxes: $4,590
- Take-Home Pay: $46,003 (76.7%)
- Monthly Net: $3,834
- Bi-weekly Net: $1,769
$80,000 Annual Salary
- Gross Pay: $80,000
- Federal Tax: $10,499
- IL State Tax: $3,960
- FICA Taxes: $6,120
- Take-Home Pay: $59,421 (74.3%)
- Monthly Net: $4,952
- Bi-weekly Net: $2,285
$120,000 Annual Salary
- Gross Pay: $120,000
- Federal Tax: $19,394
- IL State Tax: $5,940
- FICA Taxes: $9,180
- Take-Home Pay: $85,486 (71.2%)
- Monthly Net: $7,124
- Bi-weekly Net: $3,288
Illinois vs. Neighboring States
Compare Illinois's tax burden with surrounding states:
Illinois ($80k salary)
- Take-home: $59,421
- Effective rate: 25.7%
- State tax: $3,960
- Higher tax burden
Indiana ($80k salary)
- Take-home: $61,258
- Effective rate: 23.4%
- State tax: $2,123
- IN Saves: $1,837/year
Understanding Illinois Paycheck Deductions
Illinois State Income Tax
Illinois's flat 4.95% tax applies after exemptions:
- Flat Rate: 4.95% on income after exemptions
- Personal Exemption: $2,375 for single filers
- Dependent Exemptions: $2,375 per dependent
- No Standard Deduction: Illinois doesn't provide federal-style standard deduction
High Cost of Living Considerations
Illinois faces several financial challenges:
- Property Taxes: Among highest in US, especially in Chicago area
- Sales Tax: Combined state and local rates can exceed 11% in Chicago
- Gas Taxes: High motor fuel taxes add to transportation costs
- Chicago Taxes: Additional city taxes for Chicago residents
Chicago vs. Rest of Illinois
Living in Chicago comes with additional tax considerations:
Chicago Resident
- State tax: 4.95%
- Property tax: Very high
- Sales tax: 10.75%
- Gas tax: Additional city tax
Downstate Illinois
- State tax: 4.95%
- Property tax: Lower
- Sales tax: 6.25-8%
- Gas tax: State only
Frequently Asked Questions
Why are Illinois taxes considered high?
While the 4.95% income tax is moderate, Illinois has very high property taxes, sales taxes, and various fees. The combined tax burden ranks among the highest in the nation.
Does Illinois tax retirement income?
Yes, Illinois taxes most retirement income including 401(k) withdrawals, IRA distributions, and pensions. However, there are some exemptions for federally taxed retirement benefits.
Are there local income taxes in Illinois?
No, Illinois municipalities cannot impose local income taxes. However, they do impose various fees and have high property taxes.
Tax Planning Tips for Illinois Residents
Consider Property Tax Impact
Factor in property taxes when choosing where to live in Illinois, as they can significantly impact your overall tax burden.
Maximize Pre-Tax Savings
With Illinois's flat 4.95% rate, retirement contributions provide good state tax savings plus federal benefits.
Evaluate Total Cost of Living
Consider all taxes and costs, not just income tax, when evaluating job offers or relocation decisions in Illinois.
Ready to Calculate Your Illinois Take-Home Pay?
Use our calculator above to see exactly how much you'll keep from your paycheck in Illinois.