Illinois After Tax Income Calculator 2026
Calculate Your IL Take-Home Pay with Flat State Tax
Based on IL Dept. of Revenue & IRS 2026 rates
Enter Your Income Information
Your 2026 Illinois Paycheck Breakdown
Paycheck Distribution
How Illinois Income Tax Works
✅ Simple Flat Tax System
Illinois has a flat 4.95% state income tax rate on all net income. Like Pennsylvania, there are no progressive brackets — everyone pays the same rate. Illinois also offers personal exemptions ($2,625 per person for 2026) that reduce your taxable income. There is no local income tax in Illinois, making Chicago more affordable than NYC in this regard.
- Calculate Gross Income: Start with your total annual salary before any deductions.
- Subtract Pre-Tax Deductions: 401(k), health insurance, HSA, and FSA contributions reduce taxable income.
- Apply Federal Tax Brackets: Calculate federal income tax using 2026 IRS tax brackets (10%-37%).
- Calculate IL Taxable Income: Subtract IL personal exemptions from your income.
- Apply IL Flat Tax: Illinois charges a flat 4.95% on taxable income after exemptions.
- Calculate FICA: Social Security (6.2% up to $176,100) + Medicare (1.45%, plus 0.9% over $200K).
- Calculate Take-Home: Gross minus all taxes equals your Illinois net pay.
Illinois Tax Calculation Formulas
Take-Home Pay Formula
IL State Tax (Flat Rate)
IL Personal Exemption
Effective Tax Rate
Illinois Tax Facts 2026
| Tax Component | Rate / Amount | Notes |
|---|---|---|
| State Income Tax | 4.95% | Flat rate on all net income |
| Personal Exemption | $2,625/person | Reduces IL taxable income |
| Local Income Tax | 0% | No local income tax in Illinois |
| State Sales Tax | 6.25% | Plus local additions |
| Chicago Sales Tax | 10.25% | Highest in the nation |
| Property Tax Average | ~2.23% | 2nd highest in US |
2026 Federal Tax Brackets
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 10% | $0 - $11,925 | $0 - $23,850 |
| 12% | $11,925 - $48,475 | $23,850 - $96,950 |
| 22% | $48,475 - $103,350 | $96,950 - $206,700 |
| 24% | $103,350 - $197,300 | $206,700 - $394,600 |
| 32% | $197,300 - $250,525 | $394,600 - $501,050 |
| 35% | $250,525 - $626,350 | $501,050 - $751,600 |
| 37% | Over $626,350 | Over $751,600 |
IL vs Neighboring States
| State | Top Income Tax | $100K Tax | Local Tax? |
|---|---|---|---|
| Illinois | 4.95% (flat) | ~$4,821 | No |
| Indiana | 3.05% (flat) | ~$3,050 | Yes (1-3%) |
| Wisconsin | 7.65% | ~$5,200 | No |
| Iowa | 5.7% | ~$4,500 | Rare |
| Missouri | 4.8% | ~$4,200 | Some cities |
IL Tax Advantages & Considerations
✅ Advantages
- Simple flat 4.95% state tax rate
- No local income tax anywhere in IL
- Personal exemptions reduce taxable income
- Retirement income partially exempt
- Lower than CA, NY, NJ state rates
⚠️ Considerations
- 2nd highest property taxes in nation (~2.23%)
- Chicago has 10.25% sales tax
- High motor vehicle registration fees
- State pension funding issues
- Corporate tax rate is 9.5%
Official Resources
Frequently Asked Questions
Illinois has a flat 4.95% income tax rate on all net income. There are no brackets — everyone from minimum wage to millionaires pays the same 4.95% rate. A progressive tax amendment was rejected by voters in 2020, so the flat tax remains.
No! Unlike neighboring Indiana (which has county taxes) or Pennsylvania (which has local EIT), Illinois has no local income taxes. Chicago residents pay the same state income tax rate as Rockford or Springfield residents. This simplifies tax filing significantly.
Illinois offers a personal exemption of $2,625 per person for 2026. Each taxpayer, spouse, and dependent reduces taxable income by this amount. A married couple with 2 children would subtract $10,500 ($2,625 × 4) from their income before calculating the 4.95% tax.
Illinois is retirement-friendly! It exempts most retirement income: Social Security, government pensions (federal, state, military), 401(k) distributions, IRA withdrawals, and private pensions are all exempt from IL state income tax. This makes IL attractive for retirees despite high property taxes.
Illinois has the 2nd highest property taxes in the nation (avg ~2.23%) because local governments rely heavily on property taxes to fund schools, pensions, and services. Cook County (Chicago) and collar counties have particularly high rates. A $300,000 home may have $6,000-$8,000+ annual property taxes.
Chicago has the highest combined sales tax in the nation at 10.25%: 6.25% state + 1.75% city + 1.75% Cook County + 0.5% RTA. This applies to most goods. Groceries and medicine have lower rates. Suburban Cook County is slightly lower; DuPage/Lake counties are around 7-8%.
Yes! Illinois follows federal treatment for 401(k), 403(b), and traditional IRA contributions. These pre-tax contributions reduce your Illinois taxable income just like they do for federal taxes. Roth contributions don't reduce current-year taxable income but grow tax-free.
File federal Form 1040, then Illinois Form IL-1040. If you work in multiple states, you may need Schedule CR (Credit for Taxes Paid to Other States). Use MyTax Illinois for free e-filing. Most commercial software supports IL state returns.
Illinois state taxes are due April 15th, same as federal. Extensions to file are available until October 15th, but you must pay any estimated tax owed by April 15th. Estimated taxes are due quarterly (April 15, June 15, September 15, January 15) if you owe $1,000+ at year-end.
Maybe! Indiana's flat rate is 3.05% vs IL's 4.95%, but Indiana has county income taxes (1-3%+) that IL doesn't have. Compare total: IL at 4.95% vs IN at ~5-6% combined. Property taxes are much lower in Indiana. If you work in Chicago but could live in NW Indiana, you'd pay IN tax on income but face reciprocity rules.
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Last Updated: January 2025 | Projected 2026 Tax Rates