What is the Illinois income tax rate for 2026?

Illinois has a flat income tax rate of 4.95% on all taxable income. Unlike progressive-tax states like California or New York, every dollar above the standard deduction is taxed at the same rate regardless of income level.

Does Chicago have a city income tax?

No. Chicago does not levy a city income tax. Illinois workers pay only federal income tax, the flat 4.95% state tax, and FICA. This is different from cities like New York City (3.08-3.88%) or Philadelphia (3.75%).

Illinois Paycheck Calculator 2026

Flat 4.95% state tax — your $80K salary becomes $61,651 after all taxes. No city tax, even in Chicago.

Gross annual salary

Pay frequency

Filing status

Take-home per paycheck (biweekly)

$2,371.18

Gross pay (annual)$80,000

Deductions (annual)

Federal income tax−$9,049

Illinois state tax (4.95%)−$3,180

Social Security (6.2%)−$4,960

Medicare (1.45%)−$1,160

Summary

Annual take-home$61,651

Effective tax rate22.9%

You keep per dollar77 cents

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2026 federal + IL state tax rates · Updated April 2026

How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. The calculator computes federal income tax (2026 brackets), the flat 4.95% Illinois state tax, and FICA (Social Security + Medicare). Under "More options," add 401(k) contributions and health insurance premiums to see the impact of pre-tax deductions on your take-home pay.

Tab "Tax Breakdown"

A visual pie chart showing exactly where your money goes. Illinois keeps things simple — a flat 4.95% on every dollar above the standard deduction. No brackets to worry about, no city tax surcharges, even in Chicago. The chart breaks down federal tax, state tax, Social Security, and Medicare so you can see the relative weight of each.

Tab "Compare Filing Status"

See how Single, Married Filing Jointly, and Head of Household filing statuses affect your Illinois take-home pay. The federal brackets and standard deductions differ significantly between statuses, but the Illinois flat rate stays at 4.95% for everyone — only the standard deduction changes what's taxable.

The Formulas

Federal Income Tax (2026 Brackets, Single):
10% on first $11,925
12% on $11,925 – $48,475
22% on $48,475 – $103,350
24% on $103,350 – $197,300
32% on $197,300 – $250,525
35% on $250,525 – $626,350
37% on income above $626,350

Illinois State Tax (Flat Rate):
IL Tax = (Gross Income - Standard Deduction) x 4.95%
Standard Deduction: $15,750 (Single), $31,500 (MFJ), $23,500 (HoH)
No progressive brackets — every taxable dollar is 4.95%

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Wages, $184,500)
Medicare = 1.45% x Wages
Additional Medicare = 0.9% x max(0, Wages - $200,000 single / $250,000 MFJ)

All figures use 2026 IRS rates. Illinois decouples from OBBBA — overtime and tips are fully taxed at the state level. No city or local income taxes apply anywhere in Illinois.

Example

Alex — Software Developer in Chicago

Filing Single. $80,000/year. Paid biweekly. No pre-tax deductions.

Gross pay (annual)$80,000

Federal income tax-$8,872

IL state tax (4.95%)-$3,180

Social Security (6.2%)-$4,960

Medicare (1.45%)-$1,160

Annual take-home$61,828

Per biweekly paycheck$2,378

Illinois taxable income = $80,000 - $15,750 = $64,250. At the flat 4.95% rate: $64,250 x 0.0495 = $3,180. Simple — no need to look up which bracket you fall into.

Frequently Asked Questions

What is the Illinois state income tax rate for 2026?▼

Illinois has a flat income tax rate of 4.95% for 2026. This applies to all taxable income regardless of how much you earn. Taxable income is your gross income minus the standard deduction ($15,750 single, $31,500 married filing jointly, $23,500 head of household). Illinois is one of only a handful of states that use a flat tax rather than progressive brackets.

Does Chicago or any Illinois city charge a local income tax?▼

No. No city, county, or municipality in Illinois imposes a local income tax. Whether you work in Chicago, Springfield, or Peoria, you pay only the flat 4.95% state tax plus federal taxes and FICA. This is a significant advantage compared to places like New York City (3.08%–3.88% city tax on top of state tax) or Philadelphia (3.75% city wage tax).

Does the OBBBA overtime/tips deduction apply to Illinois state tax?▼

No. Illinois decouples from the federal OBBBA provisions. While the federal government allows deductions for overtime premiums and tips (2025–2028), Illinois taxes all wages including overtime and tips at the full 4.95% rate. Your federal taxable income may be lower thanks to OBBBA, but your Illinois taxable income is calculated independently using the state's own rules.

How does the Illinois flat tax compare to progressive-tax states?▼

For median-income workers ($60K–$80K), Illinois's 4.95% is moderate — roughly comparable to New York state (about 5.85% at that income). For high earners ($200K+), Illinois is significantly cheaper than California (9.3%–13.3%) or New York (6.85%–10.9%). For low-income workers, progressive states often charge 1%–2%, making their effective rate lower than Illinois's flat 4.95%. The simplicity of a flat tax means everyone knows exactly what they'll owe.

What other taxes should Illinois residents know about?▼

Beyond the 4.95% income tax, Illinois has: (1) Sales tax — 6.25% state rate, with local additions up to 10.25% in Chicago. (2) Property tax — among the highest in the nation, averaging about 2.07% of home value (vs. 0.99% national average). (3) No estate or inheritance tax at the state level for estates under $4 million. The high property tax is often cited as offsetting the relatively moderate income tax rate.

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