Illinois Tax & Salary Calculators (2026)
Everything you need to work out pay and tax as a Illinois resident in 2026, in one place. Illinois applies a flat 4.95% income tax after a $0 state standard deduction. Federal income tax and FICA (6.2% Social Security up to $184,500 plus 1.45% Medicare) apply on top, identically in every state — the Illinois layer is what makes your net pay different from a neighbour's.
Illinois is one of about a dozen states with a flat income tax — every worker pays the same 4.95% rate regardless of income level. Cost of living in Illinois sits at index 93 (US average = 100), median household income is $80,306, and a one-bedroom apartment in Chicago rents for around $1,950 per month. The local economy leans on finance, manufacturing, and logistics.
Illinois calculators
Illinois income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 4.95% |
Illinois tax facts beyond income tax (2026)
| State sales tax | 6.25% |
| Avg. effective property tax | 2.07% of home value |
| Minimum wage 2026 | $15.00 / hour |
| Top state income tax rate | 4.95% |
| Reciprocity agreements | Iowa, Kentucky, Michigan, Wisconsin |
Illinois charges a 6.25% state sales tax, homeowners pay an average effective property tax of 2.07% of market value, and the minimum wage in force during 2026 is $15.00 an hour. Chicago's combined rate reaches 10.25%, among the highest in the country.
Illinois adds no state-mandated employee payroll deduction beyond federal FICA, so your gross-to-net gap comes only from federal tax and Illinois income tax.
Illinois does not tax retirement income at all — Social Security, pensions, 401(k) and IRA withdrawals are exempt from the flat tax.
Commuting and remote work across Illinois lines
Illinois holds income-tax reciprocity agreements with Iowa, Kentucky, Michigan and Wisconsin. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
If you work remotely for an out-of-state employer, the state where you physically sit normally has the first claim on your wages, while your employer may still be required to register for Illinois withholding. Keep a day-count record whenever you split the year between Illinois and Indiana.
Illinois vs Indiana: $75,000 salary compared
| Measure | Illinois | Indiana |
|---|---|---|
| Annual take-home | $57,880 | $59,343 |
| Effective tax rate | 22.8% | 20.9% |
| Cost-of-living index | 93 | 90 |
| Property tax rate | 2.07% | 0.84% |
| State sales tax | 6.25% | 7% |
The paycheck difference is $1,463 a year on a $75,000 salary, but the full picture depends on housing: a one-bedroom in Chicago runs about $1,950 a month, and property and sales taxes shift the balance again. See the Indiana hub for the mirror view.