What's the effective tax rate in Illinois on a $100K single salary in 2026?

A $100,000 single filer in Illinois pays roughly $13,841 federal income tax + $7,650 FICA + ~$4,809 Illinois state tax = $26,300 total → 26.3% effective rate. Illinois standard deduction $0. Local + 401(k) reductions change this — use the calculator above for an exact verdict.

Does Illinois have tax reciprocity with neighboring states?

Yes — Illinois maintains state-level reciprocity with IA, KY, MI, WI (4 states). Cross-border workers from these states file only the resident-state return; the working state does not withhold income tax. Local taxes (city/county) typically fall outside reciprocity and apply regardless of resident state.

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Illinois Paycheck Calculator 2026 — Flat 4.95% Rate +4-state reciprocity

Drop your Illinois gross salary — get annual + monthly + bi-weekly take-home, full breakdown of federal + FICA + Illinois state tax, effective rate, and how you compare to the Illinois median household. Includes 2026 Illinois brackets from the Illinois Department of Revenue.

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Reviewed by CalcBold Editorial · Sources: IRS Pub 15-T 2026 (projected) + SSA wage-base 2026 + Illinois Department of Revenue — 4.95% flat individual income taxLast verified May 11, 2026Methodology

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How much do I take home in Illinois? — short answer first

Illinois levies a flat 4.95% individual income tax — unchanged since the 2017 budget compromise after a 2020 ballot referendum to introduce graduated 'Fair Tax' brackets failed. The headline rate is middle-of-the-road, but Illinois has the second-highest property tax in the country (effective rate ~2.05%) and Chicago combined sales tax can reach 10.25%. Critically, Illinois fully exempts retirement income — pensions, Social Security, 401(k) and IRA withdrawals are all state-tax-free, making Illinois the single most retirement-friendly tax state in the US for retirees with substantial pension or 401(k) income. Personal exemption is $2,850 (2026 projected, indexed annually).

How Illinois taxes payroll in 2026

Illinois levies a flat 4.95% individual income tax on net taxable income — applied uniformly to all filing statuses and all income levels. The rate has been unchanged since the 2017 budget compromise (P.A. 100-22) that resolved Illinois' two-year budget impasse. A November 2020 ballot initiative to amend the Illinois Constitution to allow graduated brackets (the 'Fair Tax') failed 53-47, locking in the flat structure. Illinois has no standard deduction. Instead, the state uses a personal exemption (and dependent exemption) — $2,775 in 2025 with annual CPI indexing; 2026 projected at $2,850. The exemption is subtracted from federal AGI (adjusted gross income) before applying the 4.95% rate. Critically, Illinois fully exempts retirement income at the state level: Social Security, traditional pensions (public and private), 401(k) withdrawals, IRA withdrawals, Roth distributions, and railroad retirement are all subtracted from Illinois taxable income. This makes Illinois the most retirement-friendly tax state in the US for retirees with substantial qualified-plan income. The trade-off shows up in property tax: Illinois has the second-highest effective property tax rate in the US (~2.05% statewide average) behind only New Jersey. Chicago has no local income tax — the city funds itself through property tax, sales tax (10.25% combined in Cook County), and dedicated levies including the sweetened-beverage tax. Illinois has reciprocity agreements with Iowa, Kentucky, Michigan, and Wisconsin, so cross-border workers file only in their state of residence.

Illinois state income tax brackets (single filer, 2026)

Taxable income up to	Marginal rate
Above prior threshold	4.95%

Standard deduction (single): $0 · top marginal rate 4.95%. Married filing jointly + head of household brackets follow the same shape with adjusted thresholds.

Illinois city callouts

Chicago — 10.25% combined sales tax (highest of any major US city); no local income tax; property tax average ~2.1% in Cook County.
Springfield — Lower property tax (~1.6%) than Cook County; no local income tax; standard IL 4.95% only.
Naperville + suburbs — Some of the highest property tax rates in Illinois (2.2-2.5% effective); often offsetting any income-tax savings vs neighboring states.

Reciprocity + multi-state notes

Illinois has reciprocity agreements with Iowa, Kentucky, Michigan, and Wisconsin. Cross-border workers submit Form IL-W-5-NR to their employer to halt Illinois withholding; they then pay tax only in their state of residence.

How to use this calculator

Enter your annual gross salary. Pre-tax, what your employer pays before any deductions.
Pick filing status. Single, married filing jointly, married filing separately, or head of household. Drives both federal and Illinois brackets.
Add 401(k) and HSA contributions (optional). Both lower your federal taxable income; HSA also lowers FICA wages.
Read the verdict. Annual + monthly + bi-weekly take-home, federal + state + local breakdown, and effective tax rate.

Common mistakes

Confusing gross with adjusted gross. The calculator wants your gross salary — what your employer pays before any pre-tax deductions or contributions. If you enter your W-2 Box 1 (already net of 401k), the math will under-count your tax.
Forgetting that 401(k) is still subject to FICA. Traditional 401(k) reduces federal income tax but NOT Social Security + Medicare. Only HSA (through payroll) reduces both.
Using the wrong filing status for state tax. Illinois uses the same filing status categories as the IRS, but bracket thresholds differ from federal. Pick the status that matches your actual tax filing — not just what gives the best number.
Ignoring multi-state implications. If you work in Illinois but live elsewhere (or vice versa), you may owe taxes in both states with a credit between them. This calculator assumes you both live and work in Illinois.

Methodology & Sources

Federal income tax + FICA: IRS Pub 15-T 2026 projected brackets + Social Security Administration 2026 wage base ($181,000) + Medicare 1.45% (no cap) + Additional Medicare 0.9% above $200K/$250K thresholds. Illinois state income tax: Illinois Department of Revenue — 4.95% flat individual income tax — last verified 2026-05-11. Brackets refresh annually — most state DORs publish updates in Q4 preceding the tax year. Federal 2026 figures are projected from 2025 (Rev. Proc. 2024-40) with ~2.5% inflation adjustment; refresh against IRS October release.

Frequently asked questions

Does Chicago have a local income tax?

No — Chicago has no city income tax. The city funds itself through property tax (one of the highest in the US after Cook County levies), 10.25% combined sales tax, a head tax on employers, and dedicated taxes including the sweetened-beverage tax. Your Chicago paycheck deducts only federal + FICA + Illinois state 4.95%.

Why did the 'Fair Tax' graduated bracket referendum fail in 2020?

The November 2020 ballot measure to amend the Illinois Constitution to permit graduated income tax brackets failed 53-47. Opposition campaigns argued businesses + high-earners would relocate, and that the legislature had not committed to specific rates. The flat 4.95% structure remains constitutionally locked unless a future amendment passes.

Is Illinois really retirement-friendly given the property taxes?

Yes for income, no for housing. Illinois fully exempts pensions, Social Security, 401(k), and IRA income from state tax — uniquely generous in the US. But effective property tax of ~2.05% means a $400K home pays ~$8,200/yr. Net retirement attractiveness depends on whether you're a homeowner; renters benefit most.

I work in Chicago but live in Indiana — what do I pay?

Illinois-Indiana reciprocity means your wages are taxed by your state of residence (Indiana, ~3.05% flat) — not Illinois. Submit Form IL-W-5-NR to your employer to stop Illinois withholding. You'll file Indiana IT-40 and pay Indiana tax directly. Cross-border workers should also confirm county-level Indiana tax applies.

Want to compare Illinois take-home pay against another state? Use the national take-home pay calculator with a flat-rate state input. To see what you'd save by changing your 401(k) contribution, drop the gross salary into the salary-to-hourly calculator. For cost-of-living adjustments when comparing jobs across states, the cost of living calculator adjusts for housing + groceries + tax differences between metros.

Frequently Asked Questions

The most common questions we get about this calculator — each answer is kept under 60 words so you can scan.

What's the effective tax rate in Illinois on a $100K single salary in 2026?
A $100,000 single filer in Illinois pays roughly $13,841 federal income tax + $7,650 FICA + ~$4,809 Illinois state tax = $26,300 total → 26.3% effective rate. Illinois standard deduction $0. Local + 401(k) reductions change this — use the calculator above for an exact verdict.
Does Illinois have tax reciprocity with neighboring states?
Yes — Illinois maintains state-level reciprocity with IA, KY, MI, WI (4 states). Cross-border workers from these states file only the resident-state return; the working state does not withhold income tax. Local taxes (city/county) typically fall outside reciprocity and apply regardless of resident state.
Does Chicago have a local income tax?
No — Chicago has no city income tax. The city funds itself through property tax (one of the highest in the US after Cook County levies), 10.25% combined sales tax, a head tax on employers, and dedicated taxes including the sweetened-beverage tax. Your Chicago paycheck deducts only federal + FICA + Illinois state 4.95%.
Why did the 'Fair Tax' graduated bracket referendum fail in 2020?
The November 2020 ballot measure to amend the Illinois Constitution to permit graduated income tax brackets failed 53-47. Opposition campaigns argued businesses + high-earners would relocate, and that the legislature had not committed to specific rates. The flat 4.95% structure remains constitutionally locked unless a future amendment passes.
Is Illinois really retirement-friendly given the property taxes?
Yes for income, no for housing. Illinois fully exempts pensions, Social Security, 401(k), and IRA income from state tax — uniquely generous in the US. But effective property tax of ~2.05% means a $400K home pays ~$8,200/yr. Net retirement attractiveness depends on whether you're a homeowner; renters benefit most.
I work in Chicago but live in Indiana — what do I pay?
Illinois-Indiana reciprocity means your wages are taxed by your state of residence (Indiana, ~3.05% flat) — not Illinois. Submit Form IL-W-5-NR to your employer to stop Illinois withholding. You'll file Indiana IT-40 and pay Indiana tax directly. Cross-border workers should also confirm county-level Indiana tax applies.