How Illinois Taxes Your Paycheck
Illinois sits in an unusual middle ground: a flat 4.95% state income tax with no municipal income tax anywhere — including Chicago. The state-paycheck math is moderate. Illinois's tax weight shows up somewhere else entirely.
Property tax is among the highest in the country. Illinois ranks second in the nation for effective property tax rate (about 2.05%), behind only New Jersey. On a median Illinois home (~$250,000), that's roughly $5,100 a year. Cook County and the collar counties (DuPage, Lake, Will, Kane, McHenry) face especially high rates and frequent reassessment shocks. Renters pay through the lease — Chicago rents reflect the property tax burden upstream.
The personal exemption is small. Illinois does not have a true standard deduction. Instead, a $2,850 personal exemption (per filer) reduces taxable income — meaning almost the entire wage is taxed at the marginal 4.95%. At $75,000 single in 2026, the state tax bill is about $3,570 (effective ~4.8%).
No city income tax. Unlike Pennsylvania, Ohio, or Michigan, Illinois cities — including Chicago — do not levy their own income tax on wages. The 4.95% state line is the entire wage-tax bill, regardless of where in Illinois you live or work.
Sales tax is layered, especially in Chicago. State sales tax is 6.25%, but Cook County and Chicago surtaxes push the combined Chicago rate to 10.25% — among the highest in the U.S. The bite is most visible on prepared meals and discretionary purchases.
For paycheck purposes, Illinois is a relatively clean story: a single rate, no local layer, moderate effective burden. The hard part of living here is what shows up on the property tax bill, the rent check, or the receipt at the register — not the W-2.
Top Cities in Illinois
The largest population centers in Illinois:
- Chicago — 2,660,000 residents
- Aurora — 180,000 residents
- Naperville — 149,000 residents
- Joliet — 150,000 residents
How Illinois Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Illinois |
|---|---|---|
| Illinois (here) | $58,021 | — |
| Wisconsin | $58,770 | +$749 |
| Iowa | $58,743 | +$721 |
| Missouri | $58,948 | +$927 |
| Kentucky | $59,082 | +$1,061 |
| Indiana | $59,410 | +$1,388 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What's the Illinois state income tax rate?
Illinois has a flat income tax rate of 4.95% for 2026. Whether you earn $40,000 or $200,000, your state tax rate is the same — applied to your taxable income after the standard deduction.
How much is taken out of my paycheck in Illinois?
For a single filer earning $75,000 in Illinois (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA, and $3,571 in Illinois state tax — leaving about $58,021 take-home (22.6% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Is the Illinois median household income enough to live comfortably?
The 2023 ACS reported a Illinois median household income of about $83,200. Whether that's "comfortable" depends heavily on city — Chicago cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Illinois paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Illinois state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.