Estimate your take-home pay in Illinois. The state applies a single flat income tax rate of 4.95% to taxable wages, so every paycheck gives up the same share to state tax on top of federal withholding, Social Security, and Medicare.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the Illinois Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
Illinois Tax Snapshot
- State Income Tax
- 4.95% top rate
- Sales Tax (state + local avg)
- 8.98%
- Avg Property Tax Rate
- 2.07%
- Median Home Value
- $239,800
- State Minimum Wage
- $15.00/hr
Did You Know?
Illinois eliminated its 1% state grocery tax on January 1, 2026, but authorized municipalities to impose a local 1% grocery tax in its place.
Illinois vs. Other Flat-Tax States
Illinois is one of 15 states that apply a single flat rate to taxable wages instead of graduated brackets. Its 4.95% rate is the 13th-lowest in that group, which runs from Arizona at 2.5% to Idaho at 5.3%.
Measured against all 42 states and jurisdictions that tax wages, Illinois's 4.95% rate ranks 24th-highest and sits below the national median top rate of 5.25%.
For comparison, nearby states line up like this: Indiana (top rate 2.95%); Iowa (top rate 3.8%); Missouri (top rate 4.7%); Wisconsin (top rate 7.65%).
How Illinois's Flat Tax Affects Your Take-Home Pay
When you earn a paycheck in Illinois, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on flat rate of 4.95%. The state minimum wage is $15.00 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 2.07% property tax rate on homes valued around $239,800.
Illinois also levies a combined state and average local sales tax of 8.98%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.
Where You Live vs. Where You Work in Illinois
Illinois has income tax reciprocity agreements with Iowa, Kentucky, Michigan, and Wisconsin. If you live in Illinois and work in one of those jurisdictions — or the other way round — your wages are taxed only by your state of residence, provided you file the non-residence certificate your employer's state requires. Without that form on file, the work state will withhold anyway and you will have to claim it back.
Illinois has no general local income or wage tax, so state withholding is the only state-level line on your pay stub alongside federal tax and FICA.