Illinois Paycheck Guide 2026: The Flat Tax State, Explained With Real Numbers
Illinois is one of the simplest states to understand on a pay stub — and one of the easiest to get slightly wrong. The state charges a single flat rate on your income, with no brackets and no standard deduction. Instead, a personal exemption comes off your income first. Here is how an Illinois paycheck works in 2026, with the arithmetic shown.
One rate for everyone: 4.95%
Illinois taxes individual income at a flat 4.95%. It does not matter whether you earn $30,000 or $300,000 — the rate is the same. That flat rate is written into the Illinois constitution, which requires income tax to be at a "non-graduated" rate, so the legislature cannot simply introduce brackets without amending the constitution. The 4.95% rate has been unchanged since July 2017.
But "flat rate" does not mean "4.95% of your whole salary." Two things come off first:
- Federal pre-tax deductions. Illinois starts from your federal adjusted gross income, so traditional 401(k) contributions and other pre-tax deductions already reduce the income Illinois sees.
- The personal exemption: $2,925 per person for 2026 (up from $2,850 in 2025). A single filer gets one exemption ($2,925); a married couple filing jointly gets two ($5,850); each dependent adds another $2,925. An extra $1,000 exemption applies if you are 65 or older or legally blind.
One catch: the exemption disappears entirely if your federal adjusted gross income is above $250,000 ($500,000 for a joint return). Below that, the math is simple: (income − exemptions) × 4.95%.
Illinois also has no standard deduction — the exemption is the only general reduction — and no city or county income tax on wages. The state constitution reserves the income-tax power to the state, so the flat 4.95% is the only income tax on your paycheck, wherever in Illinois you live, including Chicago.
What comes out of an Illinois paycheck in 2026
- Pre-tax 401(k) (if you contribute): reduces both federal and Illinois income.
- Federal income tax: 2026 federal standard deduction ($16,100 single, $32,200 joint, $24,150 head of household), then the 2026 federal brackets — 10% up to $12,400 of taxable income for single filers, 12% up to $50,400, 22% up to $105,700, and so on.
- Social Security: 6.2% of wages up to the 2026 wage base of $184,500.
- Medicare: 1.45% of all wages, plus 0.9% above $200,000 for single filers.
- Illinois income tax: 4.95% of income after the personal exemption.
Illinois withholding uses its own form, the IL-W-4, separate from your federal W-4. Each allowance you claim on it shields $2,925 a year (plus $1,000 for the age/blindness allowance) from withholding — so getting the IL-W-4 right matters as much as the federal one.
Worked example: $75,000 salary in Illinois
Single filer, paid bi-weekly (26 paychecks), no 401(k), no dependents, 2026 figures.
| Item | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,884.62 | $75,000 |
| Federal income tax | $295.00 | $7,670 |
| Social Security (6.2%) | $178.85 | $4,650 |
| Medicare (1.45%) | $41.83 | $1,088 |
| Illinois income tax (4.95%) | $137.22 | $3,568 |
| Take-home pay | $2,231.72 | $58,024.79 |
The Illinois line: $75,000 minus the $2,925 exemption leaves $72,075, and 4.95% of $72,075 is $3,567.71 a year (shown rounded as $3,568). The federal line: $75,000 minus the $16,100 standard deduction leaves $58,900 taxable — $1,240 at 10%, $4,560 at 12%, $1,870 at 22% — $7,670 in total. Effective total tax rate: about 22.6%.
At a $60,000 salary, the same single filer keeps about $47,564.79 a year: Illinois tax of $2,825.21, federal tax of $5,020, Social Security of $3,720, and Medicare of $870. Try your own salary and allowances in the Illinois Paycheck Calculator on PocketNum.
The questions Illinois workers actually ask
"Will I owe more because Chicago has extra taxes?" Not income tax. Chicago and other Illinois cities cannot levy an income tax on your wages. Chicago does have other local taxes and fees, but they are not paycheck withholdings.
"Does the flat rate mean high earners get off lightly?" The rate is flat, but the exemption phases out completely above $250,000 of federal AGI ($500,000 joint), so high earners lose that shield. And the federal system on top is progressive, so total tax still rises with income.
"What if my employer only has my federal W-4?" Ask about the IL-W-4. Illinois withholding is calculated from it, and without it your state withholding may be wrong in either direction.
Frequently asked questions
What is the Illinois income tax rate in 2026?
A flat 4.95% on net income, unchanged since July 2017. There are no brackets.
What is the Illinois personal exemption for 2026?
$2,925 per person ($5,850 for a married couple filing jointly, plus $2,925 per dependent and $1,000 extra if 65 or older or legally blind). It is disallowed entirely above $250,000 of federal AGI ($500,000 joint).
How much of a $75,000 salary do I keep in Illinois?
About $58,024.79 a year, or about $2,231.72 per bi-weekly paycheck, for a single filer with no 401(k) in 2026.
Does Illinois have a standard deduction?
No. Illinois has no standard deduction; the personal exemption allowance is what reduces your taxable income.
Sources
- Illinois Department of Revenue — individual income tax rates (flat 4.95%) and personal exemption allowance ($2,925 for 2026; FY 2026-15, "What's New for Illinois Income Taxes")
- Illinois Department of Revenue — Booklet IL-700-T, Illinois Withholding Tax Tables (2026)
- IRS — 2026 federal tax inflation adjustments (IR-2025-103) and Revenue Procedure 2025-32 (standard deduction and brackets)
- Social Security Administration — contribution and benefit base ($184,500 for 2026)
Estimate only — not tax advice. Figures use 2026 federal brackets and standard deduction, 2026 FICA rates, and Illinois' 2026 flat rate and personal exemption. Your real withholding depends on your federal W-4 and Illinois IL-W-4, pre-tax benefits, and any credits, so it can differ. Per-paycheck figures are rounded and may differ by a cent or two from annual totals.