What is the Illinois state income tax rate?

Illinois levies a flat state income tax of 4.95% on all taxable income, with no progressive brackets. This rate has been in place since 2017, when it was raised from 3.75% as part of a budget package to address the state's chronic fiscal crisis. The Illinois Constitution explicitly requires that the personal income tax be a flat rate, meaning any move to a graduated structure would require a constitutional amendment. Illinois voters rejected such an amendment in November 2020 by a margin of 53% to 47%, locking in the flat structure for the foreseeable future.

How much does a $28/hour worker take home in Illinois?

At $28/hour working 40 hours per week and filing single, your gross annual pay is $58,240. After federal income tax of approximately $4,991, Illinois state tax of approximately $2,747, Social Security of approximately $3,611, and Medicare of approximately $844, your annual take-home is roughly $46,047, which works out to about $1,771 per biweekly paycheck. By comparison, the same worker in neighboring Indiana (flat 3%) would pay approximately $1,094 less in state tax, while a worker in Iowa (flat 3.8%) would pay approximately $664 less.

Does Chicago have a city income tax?

No, Chicago does not impose a municipal income tax on individual wages, and Illinois state law generally preempts cities from levying personal income taxes. This is a frequent point of confusion because Chicago has high overall taxes, but those come from sales tax (10.25% combined, one of the highest in the country), property tax (effective rates of 2% or more in many neighborhoods), and various transaction taxes (parking, restaurant, hotel, ride-share), not from a city payroll tax. Workers in Chicago face the same 4.95% Illinois state rate as workers in Peoria, Rockford, Springfield, or any other Illinois city. The city does collect a small head tax on certain employers (about $4 per employee per month), but this is paid by the employer and does not reduce your paycheck.

Why does Illinois have a constitutionally mandated flat tax?

The Illinois Constitution of 1970, Article IX, Section 3, explicitly requires that any income tax imposed by the state must be a non-graduated (flat) rate. This provision was a deliberate compromise during the 1970 constitutional convention to ensure broad political support for allowing any income tax at all. Before 1969, Illinois had no individual income tax. The flat structure has been challenged repeatedly, most recently through the Fair Tax Amendment on the November 2020 ballot that would have replaced the flat structure with a graduated system. Voters rejected the amendment 53% to 47%, in large part because of opposition advertising funded by the state's wealthiest residents who would have paid much higher marginal rates under the proposed structure.

What is the Illinois personal exemption?

Illinois replaces the standard deduction with a personal exemption of $2,775 per person for the 2025 tax year ($2,775 single, $5,550 married filing jointly, $2,775 head of household). Additional $2,775 exemptions apply for each dependent. This relatively small exemption means that almost all of your earned income is subject to the 4.95% rate, in sharp contrast to states like Idaho or Colorado where standard deductions of $15,000+ shield significant portions of income from state tax. The Illinois personal exemption is adjusted annually for inflation under a 2023 statutory amendment, so the figure rises modestly each year.

How does Illinois compare to Indiana for take-home pay?

Indiana's flat 3% state tax is dramatically lower than Illinois's 4.95%, and the difference compounds over time. A worker earning $70,000 saves approximately $1,365 per year by living in Indiana versus Illinois on state income tax alone. However, Indiana counties also levy local income taxes ranging from 0.5% to 3% on residents, so Lake County, Marion County (Indianapolis), and other Indiana jurisdictions add a layer of taxation that does not exist for Illinois residents. After accounting for county tax, the net Indiana advantage is closer to $600 to $900 per year for most middle-income workers. Many Northwest Indiana residents commute to Chicago for higher wages while paying Indiana's lower combined rate, which is a popular tax arbitrage strategy.

What is the Illinois minimum wage in 2026?

Illinois's minimum wage is $15.00 per hour as of January 1, 2025, the final step in a phased increase signed by Governor J.B. Pritzker in 2019. Chicago has its own minimum wage of $16.20 per hour for large employers as of July 2024 (rising annually with inflation). The state minimum will continue rising with cost-of-living adjustments after 2025. A minimum-wage worker in Illinois earning $15 per hour and working 40 hours per week earns $31,200 annually gross. After the federal standard deduction of $15,000, Illinois state tax of about $1,406, federal tax of about $1,927, and FICA of about $2,387, the worker takes home approximately $25,480 per year.

Illinois Paycheck Calculator (Hourly) — Free Take-Home Pay Estimator

How the Illinois Paycheck Calculator Works

This Illinois paycheck calculator hourly tool computes your take-home pay by subtracting federal income tax, Illinois state income tax at the constitutionally mandated flat 4.95% rate, and FICA (Social Security and Medicare) from your gross earnings. Illinois is one of nine states with a flat individual income tax, and the only one where flat-rate taxation is locked in by the state constitution rather than statute.

The core formula:

Take-Home = Gross - Federal Tax - IL State Tax - Social Security - Medicare

P_{net} = P_{gross} - T_{fed} - T_{IL} - T_{SS} - T_{Med}

Annual gross is hourly wage x hours per week x 52 weeks. Convert your hourly rate to an annual salary equivalent using our salary calculator. Federal tax uses 2026 IRS brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) applied progressively to taxable income (gross minus $15,000/$30,000/$22,500 standard deduction and any pre-tax retirement contributions). Illinois state tax is the simplest calculation in the country: take your gross income, subtract the personal exemption of $2,775 per person (or $5,550 for joint filers), and multiply the remainder by 4.95%. There are no progressive brackets, no standard deduction, and no itemization on the Illinois side. Social Security is 6.2% on wages up to $176,100, Medicare is 1.45% on all wages with a 0.9% additional surcharge on wages above $200,000 single or $250,000 married.

Illinois Hourly Paycheck Tax Breakdown

Illinois has imposed a flat individual income tax since 1969, when the constitutional convention compromise required that any income tax be levied at a non-graduated rate. The current 4.95% rate has been in effect since 2017, when the legislature raised it from 3.75% over Governor Bruce Rauner's veto to address a budget impasse. Prior to 2011 the rate was 3%, and the 2011 increase to 5% was originally framed as temporary. In 2020, Illinois voters considered the Fair Tax Amendment, which would have replaced the flat structure with a graduated system charging up to 7.99% on the highest earners. Voters rejected the amendment 53% to 47%, in part because of an opposition campaign primarily funded by billionaire Ken Griffin, leaving the flat structure firmly in place.

Compared to its five neighboring states, Illinois sits in the middle of the regional rate spectrum:

Indiana: Flat 3% state rate plus county income taxes of 0.5% to 3% depending on residence. Combined effective Indiana rate for most workers is roughly 4% to 5%, comparable to Illinois.
Wisconsin: Progressive 3.5% to 7.65% with brackets reaching the top rate at $315,310 single. A Wisconsin worker earning $60,000 pays roughly the same as an Illinois worker; high earners pay more.
Iowa: Flat 3.8% as of 2025, lower than Illinois's 4.95%. An Iowa worker earning $70,000 saves about $805 annually compared to Illinois.
Missouri: Graduated 2% to 4.95% on income above $8,968. At the top bracket, Missouri matches Illinois exactly, but low-income Missourians pay considerably less.
Kentucky: Flat 4%, with statutory triggers for further reductions to 3.5% and beyond as state revenue allows. A Kentucky worker earning $70,000 saves approximately $665 per year compared to Illinois.

This makes Illinois the second-highest-taxing state in its immediate region for most middle-income workers, behind only Wisconsin for high earners. Illinois's small personal exemption ($2,775) further widens the gap: while a $50,000 earner in Iowa or Indiana shelters several thousand dollars from state tax through standard deductions, an Illinois earner pays 4.95% on essentially the entire $47,225 of post-exemption income.

Your Illinois paycheck deductions come from:

Federal income tax: Progressive 2026 brackets; use our income tax calculator for full-year estimates.
Illinois state income tax: Flat 4.95% on Illinois base income (gross minus $2,775 personal exemption per person).
Social Security: 6.2% on wages up to $176,100.
Medicare: 1.45% on all wages, plus 0.9% surtax above $200,000 single or $250,000 married.

Variable Definitions

Hourly Wage: Your gross pay per hour. Illinois minimum wage is $15.00 statewide ($16.20 in Chicago for large employers). Illinois occupational examples: a Chicago Public Schools teacher earns about $42 per hour (annualized from salary plus pension contributions), a registered nurse at Northwestern Memorial earns roughly $48 per hour, a Caterpillar plant worker in Peoria earns about $32 per hour, a warehouse worker at an Amazon fulfillment center in Joliet earns roughly $22 per hour, and a downtown Chicago barista earns about $17 per hour plus tips. All face the identical 4.95% Illinois state rate regardless of geography or occupation.

Hours per Week: Standard is 40 hours. Illinois follows federal Fair Labor Standards Act overtime rules of 1.5x above 40 hours per week for non-exempt workers, with no state daily overtime rule. The One Day Rest in Seven Act requires Illinois employers to give workers at least 24 consecutive hours off per calendar week.

Pay Frequency: Weekly = 52, biweekly = 26, semi-monthly = 24, monthly = 12. State of Illinois employees and many Chicago-area employers pay biweekly. The Illinois Wage Payment and Collection Act requires that employees be paid at least semi-monthly.

Filing Status: Determines federal standard deduction and the number of Illinois personal exemptions claimed. Single filers claim one $2,775 exemption; married filing jointly claims two ($5,550 combined). Each dependent adds another $2,775. A family of four (two adults and two children) shelters $11,100 from Illinois tax through exemptions alone.

Pre-Tax Deduction: Percentage contributed to 401(k), 403(b), HSA, or similar pre-tax accounts. Reduces both federal and Illinois taxable income. A worker earning $65,000 contributing 6% ($3,900) saves about $193 in Illinois state tax plus federal savings of $468 in the 12% bracket, for combined tax-deferred savings of $661.

Worked Example 1: Illinois Hourly Paycheck at $22/Hour

A single filer earning $22/hour, working 40 hours/week, biweekly pay, with no pre-tax deductions:

Annual gross: $22 x 40 x 52 = $45,760
Federal taxable: $45,760 - $15,000 (federal std deduction) = $30,760
Federal tax: ($11,925 x 10%) + ($18,835 x 12%) = $1,192.50 + $2,260.20 = $3,452.70
Illinois taxable: $45,760 - $2,775 (personal exemption) = $42,985
Illinois state tax: $42,985 x 4.95% = $2,127.76
Social Security: $45,760 x 6.2% = $2,837.12
Medicare: $45,760 x 1.45% = $663.52
Total deductions: $3,452.70 + $2,127.76 + $2,837.12 + $663.52 = $9,081.10
Annual take-home: $45,760 - $9,081.10 = $36,678.90
Biweekly take-home: $36,678.90 / 26 = $1,410.73

Worked Example 2: Illinois Hourly Paycheck at $50/Hour

A single filer earning $50/hour, working 40 hours/week, biweekly pay, with 9% 401(k) contribution:

Annual gross: $50 x 40 x 52 = $104,000
Pre-tax 401(k): $104,000 x 9% = $9,360
Adjusted gross: $104,000 - $9,360 = $94,640
Federal taxable: $94,640 - $15,000 = $79,640
Federal tax: ($11,925 x 10%) + ($36,550 x 12%) + ($31,165 x 22%) = $1,192.50 + $4,386.00 + $6,856.30 = $12,434.80
Illinois taxable: $94,640 - $2,775 = $91,865
Illinois state tax: $91,865 x 4.95% = $4,547.32
Social Security: $94,640 x 6.2% = $5,867.68
Medicare: $94,640 x 1.45% = $1,372.28
Total deductions: $9,360 + $12,434.80 + $4,547.32 + $5,867.68 + $1,372.28 = $33,582.08
Annual take-home: $104,000 - $33,582.08 = $70,417.92
Biweekly take-home: $70,417.92 / 26 = $2,708.38

This Illinois worker keeps about 67.7% of gross income after taxes and the 401(k) contribution. The Illinois portion accounts for about 4.4% of gross — slightly lower than the headline 4.95% rate because the personal exemption shelters $2,775 from tax. Note how small the exemption is relative to total income: at $100,000+, the exemption shields only about 3% of gross, meaning the effective Illinois rate approaches the headline 4.95% rate for high earners.

Edge Cases and Advanced Scenarios

Illinois retirement income exemption: Illinois fully exempts retirement income, including Social Security benefits, qualified pension distributions, 401(k) and IRA withdrawals, and railroad retirement benefits from state income tax. This is one of the most generous retirement income tax treatments in the country and makes Illinois surprisingly attractive for retirees despite its high working-age tax burden. A retiree drawing $80,000 from a combination of Social Security, pension, and 401(k) withdrawals owes $0 in Illinois state tax, while the same retiree in Iowa or Indiana might owe $2,000 to $3,500.

Cross-border reciprocity with Indiana, Wisconsin, Iowa, Kentucky, Michigan: Illinois has reciprocity agreements with five neighboring states (Indiana, Wisconsin, Iowa, Kentucky, and Michigan) that exempt cross-border commuters from paying tax to the work state. A Wisconsin resident working in downtown Chicago files only with Wisconsin and is exempt from Illinois withholding by submitting Form IL-W-5-NR to the employer. Conversely, an Illinois resident working in Indianapolis is exempt from Indiana state tax (though not Indiana county tax). Cross-border workers must file the appropriate exemption form annually to maintain the benefit.

Chicago commuter and convention head taxes: Chicago itself does not impose a wage tax, but it does levy a small employer head tax (currently about $4 per employee per month for certain large employers) and various transaction taxes (10.25% sales tax, 6% restaurant tax in the central business district, 9% amusement tax on event tickets, ride-share surcharges of up to $3 per trip). None of these reduce your paycheck directly, but they significantly affect the real cost of living and working in Chicago compared to elsewhere in Illinois.

What to Do with Your Illinois Paycheck Result

Compare your calculator output to your actual pay stub. Differences often come from health insurance premiums, Chicago Transit Authority benefit deductions, or union dues common to Illinois public-sector and trade jobs.
If you are considering retiring in Illinois, model your retirement scenario knowing that pension, Social Security, and 401(k) income will be fully Illinois tax-exempt. The state's flat 4.95% only applies to wages and self-employment income, not retirement distributions.
Maximize 401(k) contributions to reduce both federal and Illinois state tax. Every $1,000 contributed saves $49.50 in Illinois tax plus your federal bracket rate.
Use our federal income tax percentage calculator to confirm your effective federal rate. Combined Illinois plus federal effective rates typically run 16% to 22% for workers earning $50,000 to $120,000.

Related Calculators

Indiana Paycheck Calculator (Hourly) — neighboring state with a flat 3% rate, the most direct comparison for Chicago-area workers considering Northwest Indiana.
Iowa Paycheck Calculator (Hourly) — flat 3.8% rate, a lower-tax option for Quad Cities region commuters.
Salary Calculator — convert between hourly and annual pay.
Income Tax Calculator — estimate your total federal income tax liability.
Federal Income Tax Percentage Calculator — find your effective federal tax rate.
Paycheck Calculator by State — compare take-home pay across all 50 states and DC.

Illinois Paycheck Calculator (Hourly)