Illinois charges a flat income tax of 4.95% on all taxable income — the same rate whether you earn $30,000 or $300,000. There are no brackets to navigate. Your Illinois tax is simply 4.95% of your income after the $2,775 personal exemption.
Quick answer: On a $75,000 salary, an Illinois resident pays approximately $3,574 in state income tax — an effective rate of 4.77% of gross pay. There is no standard deduction in Illinois, only the personal exemption ($2,775 single).
Illinois Income Tax — Salary to Take-Home Table (Single, 2026)
Tax = (Gross − $2,775 exemption) × 4.95%. Federal taxes not included.
| Gross Salary | IL Taxable Income | IL Income Tax | Effective IL Rate | Take-Home (after IL + federal) |
|---|---|---|---|---|
| $30,000 | $27,225 | $1,347 | 4.49% | ~$22,100 |
| $40,000 | $37,225 | $1,843 | 4.61% | ~$29,200 |
| $50,000 | $47,225 | $2,338 | 4.68% | ~$36,100 |
| $60,000 | $57,225 | $2,833 | 4.72% | ~$43,200 |
| $70,000 | $67,225 | $3,328 | 4.75% | ~$50,000 |
| $75,000 | $72,225 | $3,575 | 4.77% | ~$53,400 |
| $80,000 | $77,225 | $3,823 | 4.78% | ~$56,700 |
| $90,000 | $87,225 | $4,318 | 4.80% | ~$63,400 |
| $100,000 | $97,225 | $4,813 | 4.81% | ~$69,900 |
| $120,000 | $117,225 | $5,802 | 4.84% | ~$82,400 |
| $150,000 | $147,225 | $7,288 | 4.86% | ~$99,600 |
| $200,000 | $197,225 | $9,762 | 4.88% | ~$129,800 |
| $300,000 | $297,225 | $14,713 | 4.90% | ~$188,500 |
The effective rate approaches but never reaches 4.95% because the $2,775 exemption reduces taxable income. Verify exact figures at tax.illinois.gov.
How Illinois Income Tax Works
Illinois is one of the simplest state tax systems in the country:
Step 1: Start with your federal adjusted gross income (AGI) from Form 1040 line 11.
Step 2: Subtract your Illinois personal exemption ($2,775 for single filers; $5,550 married; $2,775 per dependent).
Step 3: Subtract any Illinois-specific deductions (retirement income exclusions, federally-taxed Social Security that Illinois exempts, etc.).
Step 4: Multiply the result by 4.95%.
Step 5: Subtract any Illinois tax credits (property tax credit, Education Expense Credit, etc.).
That’s your Illinois income tax bill.
Worked Examples
Example 1: $60,000 salary (single)
| Step | Calculation |
|---|---|
| Gross salary | $60,000 |
| Personal exemption | −$2,775 |
| Illinois taxable income | $57,225 |
| $57,225 × 4.95% | $2,833 |
| Effective IL rate on gross | 4.72% |
On $60,000, your Illinois income tax is $2,833 — simple, no bracket math required.
Example 2: Family of 4 earning $120,000 (married, 2 children)
| Step | Calculation |
|---|---|
| Gross income | $120,000 |
| Exemptions: 2 adults + 2 children | −$11,100 |
| IL taxable income | $108,900 |
| $108,900 × 4.95% | $5,391 |
| Property tax credit (if homeowner) | −up to $300 |
| Effective IL tax | ~$5,091 |
Illinois vs. Neighboring States: Tax on $100,000 (Single)
| State | Rate Type | Tax on $100K | Notes |
|---|---|---|---|
| Illinois | 4.95% flat | ~$4,813 | Personal exemption only |
| Indiana | 3.05% flat | ~$2,950 | + county taxes of 0.5%–2.9% |
| Michigan | 4.25% flat | ~$4,200 | Personal exemption ~$5,000 |
| Wisconsin | Graduated (up to 7.65%) | ~$5,500 | Four brackets |
| Missouri | Graduated (up to 4.8%) | ~$4,650 | Standard deduction applies |
| Iowa | 3.8% flat (2026) | ~$3,750 | Iowa cut rates significantly |
Key takeaway: Indiana and Iowa now offer lower flat rates than Illinois. Wisconsin and Minnesota are higher for most income levels.
Illinois Tax Credits You May Qualify For
| Credit | Amount | Who Qualifies |
|---|---|---|
| Illinois Property Tax Credit | 5% of property taxes paid (up to $300) | Homeowners |
| Earned Income Credit (EIC) | 20% of federal EITC | Low-to-moderate income earners |
| Education Expense Credit | 25% of K–12 expenses over $250 | Parents paying K–12 tuition |
| Household Employment Credit | Varies | Household employers |
| Film Production Credit | Varies | Film industry workers |
What Illinois Does NOT Tax
One of Illinois’s friendliest features is its retirement income exclusions:
- Social Security — 100% exempt from Illinois state tax
- Most public pension income — Illinois government pensions, teacher pensions, military retirement pay — exempt
- Railroad Retirement benefits — exempt
- 401(k) and IRA distributions — taxable at 4.95% (no special exemption for private retirement accounts)
Implication: A retiree living on $80,000 of Social Security and a public teacher’s pension pays zero Illinois state income tax. The same retiree drawing $80,000 from a 401(k) pays $3,823.
Illinois Property Tax: The Hidden Tax Burden
Illinois has no standard deduction and low personal exemptions, but the real affordability issue for Illinois residents is property tax. Illinois has one of the highest effective property tax rates in the US:
- National average effective property tax rate: 0.99%
- Illinois effective property tax rate: 1.88% (2nd highest in the nation)
- On a $350,000 home: roughly $6,580/year in property taxes
- On a $500,000 Chicago home: $10,000+/year in property taxes
The Illinois Property Tax Credit allows homeowners to deduct 5% of property taxes paid against their state income tax bill (up to $300 credit).
Related Guides
- Illinois Income Tax Guide 2026 — Rates, Brackets & Deductions
- 9 States With No Income Tax 2026
- Federal Income Tax Brackets 2026
- State Income Tax Rates 2026 — All 50 States
- $75,000 Salary After Taxes 2026
- $100,000 Salary After Taxes 2026
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