Quick Answer
Illinois state income tax is 4.95% of your gross income for 2026. On a $60,000 salary, you'll pay $2,970 annually in Illinois state income tax, or about $114 per biweekly paycheck. Unlike federal taxes, Illinois uses a flat rate regardless of income level.
Best Answer
Sarah Chen, Payroll Tax Analyst
Best for typical employees living and working in Illinois
How much is Illinois state income tax?
Illinois charges a flat 4.95% state income tax rate on all income levels for 2026. This means whether you earn $30,000 or $300,000, you pay the same percentage rate — making Illinois one of only 9 states with a flat income tax structure.
Unlike federal income tax with progressive brackets, Illinois keeps it simple: multiply your gross income by 4.95% and that's your annual state tax liability.
Example: Illinois state tax on different salaries
Let's see how the 4.95% rate affects various income levels:
How Illinois state tax withholding works
Your employer calculates Illinois state tax withholding based on:
The withholding is automatic — you don't need to make quarterly payments like self-employed individuals do.
Key factors that affect your Illinois state tax
Illinois vs. federal tax withholding
Unlike federal taxes where rates increase with income (10% to 37%), Illinois state tax remains constant at 4.95%. This means:
What you should do
Check your most recent paystub to verify Illinois state tax is being withheld correctly. The amount should be approximately 4.95% of your gross pay for that period. If it seems too high or low, you may need to adjust your IL-W-4 form with HR.
Use our paycheck calculator to see exactly how Illinois state tax affects your take-home pay based on your specific salary and deductions.
Key takeaway: Illinois state income tax is a flat 4.95% of all income. On a typical $60,000 salary, expect about $114 deducted per biweekly paycheck for Illinois state taxes.
Key Takeaway: Illinois charges a flat 4.95% state income tax on all income levels, making it one of the simplest state tax systems in the country.
Illinois state tax amounts by salary level
| Annual Salary | Illinois State Tax (Annual) | Per Biweekly Paycheck | Per Monthly Paycheck |
|---|---|---|---|
| $40,000 | $1,980 | $76.15 | $165 |
| $60,000 | $2,970 | $114.23 | $247.50 |
| $80,000 | $3,960 | $152.31 | $330 |
| $100,000 | $4,950 | $190.38 | $412.50 |
| $150,000 | $7,425 | $285.58 | $618.75 |
More Perspectives
Sarah Chen, Payroll Tax Analyst
Best for people who moved to or from Illinois during the tax year
Illinois state tax for new residents
If you moved to Illinois mid-year, you'll need to file as a part-year resident and pay Illinois state tax only on income earned while living in Illinois.
Illinois taxes all income earned by residents at 4.95%, including:
Pro-rating your Illinois tax liability
When you move to Illinois, your employer should start withholding Illinois state tax from your next paycheck. However, you may need to file part-year returns in both your old state and Illinois.
Example: If you moved to Illinois on July 1st with a $72,000 annual salary, you'd owe Illinois state tax on approximately $36,000 (6 months) = $1,782 in Illinois state tax for that year.
Key considerations for new Illinois residents
Key takeaway: New Illinois residents pay 4.95% state tax on income earned while living in Illinois, with possible credits for taxes paid to other states during the same year.
Key Takeaway: New Illinois residents pay the flat 4.95% rate only on income earned while living in Illinois, with potential credits for out-of-state taxes paid.
Sarah Chen, Payroll Tax Analyst
Best for people who live in Illinois but work remotely for out-of-state companies
Illinois tax for remote workers
If you live in Illinois but work remotely for an out-of-state company, you still owe Illinois state income tax at 4.95% on your wages. Illinois taxes its residents on all income regardless of where it's earned.
Common remote work tax scenarios
Scenario 1: You live in Illinois, work remotely for a California company
Scenario 2: You live in Illinois, work remotely for a company in a reciprocal state (Iowa, Kentucky, Michigan, Wisconsin)
Managing withholding as a remote worker
Many remote workers face underwithholding for Illinois state tax because their out-of-state employer doesn't withhold Illinois tax. To avoid a large tax bill:
Key takeaway: Illinois residents working remotely still owe 4.95% Illinois state tax on all income, regardless of where their employer is located, and may need to handle withholding manually.
Key Takeaway: Illinois residents working remotely for out-of-state companies still owe 4.95% Illinois state tax and may need to handle withholding through estimated payments.
Sources
- IRS Publication 15-T — Federal Income Tax Withholding Methods
- Illinois Department of Revenue - Income Tax Rates — Current Illinois state income tax rates and brackets
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.