Illinois paycheck taxes at a glance
| Income tax on wages | Flat 4.95% |
|---|---|
| Minimum wage (2026) | $15.00 an hour ($13.00 for workers under 18 who work fewer than 650 hours a year) |
Example: a $86,700 salary in Illinois
The median household income in Illinois is about $86,676 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $3,334.62 |
|---|---|
| Federal income tax | −$394.00 |
| Social Security | −$206.75 |
| Medicare | −$48.35 |
| Illinois income tax | −$159.49 |
| Take-home pay | $2,526.02 |
That's $65,677 a year in take-home pay, or 24.2% of gross pay going to taxes.
Take-home pay by salary in Illinois
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,249.41 | $32,485 | $1,835 | 18.8% |
| $60,000 | $1,829.41 | $47,565 | $2,825 | 20.7% |
| $80,000 | $2,357.49 | $61,295 | $3,815 | 23.4% |
| $100,000 | $2,860.57 | $74,375 | $4,805 | 25.6% |
| $150,000 | $4,096.57 | $106,511 | $7,280 | 29% |
| $200,000 | $5,352.76 | $139,172 | $9,755 | 30.4% |
What changed for 2026
- The personal exemption allowance rose from $2,850 for 2025 to $2,925 for 2026. Each allowance you claim on Form IL-W-4 shields that much of your yearly pay from Illinois tax.
Illinois pay rules worth knowing
- Employers must pay at least twice a month, no later than 13 days after the end of each pay period. Executive, administrative and professional employees may be paid once a month.
- If you quit or are fired, your final compensation is due no later than your next regularly scheduled payday.
How Illinois withholding works
Illinois withholding takes three steps. Your employer takes your annual pay, subtracts $2,925 for each basic allowance you claim on Form IL-W-4 (plus $1,000 for each additional allowance), and withholds 4.95% of the rest. There are no brackets. Illinois also takes no disability or paid-leave premium from wages, so state income tax is usually the only Illinois line on your stub.
For a single filer claiming one allowance, the first $2,925 of the year’s pay is tax-free and every dollar after that costs 4.95 cents. That’s why the state share in the take-home table climbs almost in a straight line with salary.
Getting your IL-W-4 right
The IL-W-4 is separate from the federal W-4, and many people fill out the federal form and forget the state one. A few things to check:
- Count your allowances. Basic allowances cover you, your spouse and your dependents. Each one is worth about $145 a year in tax at 4.95%, so a missing allowance for a new child costs you about $5.57 per biweekly paycheck until you fix it.
- Two jobs or two earners. If you and your spouse both work, don’t claim the same allowances at both jobs, or too little will be withheld.
- Extra withholding. The IL-W-4 lets you ask for an additional amount each pay period if you have other income, such as freelance work or investment income, that has no Illinois tax withheld.
Living across the state line
Illinois has reciprocity with four of its neighbors (Iowa, Kentucky, Michigan and Wisconsin), but not with Indiana or Missouri. Residents of those two states who work in Illinois pay Illinois tax on their Illinois wages. Their home state may then give them a credit for tax paid to another state.
If you live in Illinois and work in one of the reciprocal states, give your employer that state’s exemption form so it withholds Illinois tax instead. Otherwise you may have to file a return in the work state to get its tax back.
Minimum wage and hourly pay
Illinois reached its $15.00 minimum wage on January 1, 2025, the last scheduled step, and it stayed at $15.00 for 2026. Full-time at $15.00 an hour (40 hours a week, 52 weeks) comes to $31,200 a year before taxes. Enter your hourly rate in the calculator above to see each paycheck.
Planning tools
The income tax calculator estimates your full-year federal tax, the 401(k) calculator shows how pre-tax savings grow, and the salary calculator converts an hourly wage to monthly or annual pay.
Estimates only. Your employer’s payroll system, your W-4 and IL-W-4 determine your actual paycheck.
Sources
- Illinois Department of Labor: Minimum Wage and Overtime FAQ
- Illinois Department of Labor: Wage Payment FAQ
- Illinois DOR: Form IL-W-5-NR (reciprocity)
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- tax.illinois.gov
- tax.illinois.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
What is the Illinois income tax rate for 2026?
It's a flat 4.95% of your wages after your exemption allowances. The same rate applies whether you earn $30,000 or $3 million, so a raise is always taxed at 4.95% by the state.
I live in Iowa, Kentucky, Michigan or Wisconsin and work in Illinois. Do I pay Illinois tax?
Generally not on your wages. Illinois has reciprocal withholding agreements with those four states. Give your employer Form IL-W-5-NR so it withholds for your home state instead of Illinois.
What are the extra allowances on Form IL-W-4?
Besides the basic allowances for you, your spouse and dependents (worth $2,925 each in 2026), you can claim an additional $1,000 allowance if you're 65 or older and another if you're legally blind.
What is the tipped minimum wage in Illinois?
Employers can count tips toward up to 40% of the minimum wage, so the lowest cash wage for a tipped worker 18 or older is $9.00 an hour. If tips don't make up the difference to $15.00, the employer has to pay it.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.