What is the Illinois state income tax rate in 2026?

Illinois has a flat 4.95% state income tax rate on all taxable income in 2026. Illinois does not use graduated brackets — everyone pays the same percentage regardless of income. There is no standard deduction for Illinois income tax, though there is a personal exemption of $2,425 (2026).

How much take-home pay on $75,000 in Illinois?

On a $75,000 salary in Illinois, a single filer pays approximately $8,556 in federal income tax, $5,738 in FICA, and $3,591 in Illinois state income tax (4.95% on income above the $2,425 personal exemption). Take-home pay is approximately $57,115 per year, or $4,760 per month.

Does Chicago have a local income tax?

No. Chicago does not impose a local income tax on wages. However, Illinois cities can impose other local taxes. Chicago residents pay a city sales tax and various fees, but not a local income tax like NYC residents face.

Is Illinois income tax on gross or adjusted income?

Illinois taxes your net income after a personal exemption ($2,425 in 2026 per filer and dependent). There is no standard deduction equivalent. However, Illinois does not tax Social Security income or most retirement income, which is a significant benefit for retirees.

Does Illinois tax retirement income?

No. Illinois exempts nearly all retirement income from state income tax, including Social Security benefits, pension income, 401(k) and IRA distributions, and military retirement pay. This makes Illinois relatively tax-friendly for retirees despite its higher income tax rate on workers.

Illinois Take-Home Pay Calculator 2026 — 4.95% Flat Tax

Illinois has a flat 4.95% state income tax rate — every dollar of taxable income is taxed at the same rate. On a $75,000 salary, an Illinois resident keeps about $57,100 after federal and state taxes. Use the calculator below — it defaults to Illinois.

Take-Home Pay Calculator

Take-Home Pay per Year

Effective Tax Rate

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Gross Per Period

Where your money goes:

Federal Income Tax

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FICA (SS + Medicare)

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State Income Tax

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📋 Detailed Tax Breakdown

Illinois Take-Home Pay by Salary (2026)

Gross Salary	Federal Tax	FICA	IL State Tax	Take-Home	Eff. Rate
$40,000	$2,978	$3,060	$1,869	$32,093	19.8%
$50,000	$4,478	$3,825	$2,364	$39,333	21.3%
$60,000	$5,978	$4,590	$2,859	$46,573	22.4%
$75,000	$8,556	$5,738	$3,591	$57,115	23.8%
$100,000	$13,234	$7,650	$4,836	$74,280	25.7%
$150,000	$24,034	$10,718	$7,326	$107,922	28.1%
$200,000	$38,090	$12,958	$9,816	$139,136	30.4%

IL personal exemption: $2,425 (single). IL rate: 4.95% on net income. Estimates only.

How Illinois Income Tax Works

Illinois uses a flat tax — unlike most states with graduated brackets. Every taxpayer pays 4.95% of taxable income. The only deduction is a personal exemption of $2,425 per person (plus dependents). There is no standard deduction comparable to the federal $15,000.

Example calculation on $75,000:

Illinois taxable income = $75,000 − $2,425 = $72,575
Illinois tax = $72,575 × 4.95% = $3,592

Note that Illinois does not tax Social Security or retirement income, which significantly reduces the tax burden for retirees compared to working-age residents.

Illinois vs. Neighboring States

$100,000 salary, single filer:

State	State Tax	Take-Home
Indiana (3.05% flat)	~$3,050	~$76,300
Wisconsin (graduated)	~$5,050	~$74,300
Illinois (4.95% flat)	~$4,836	~$74,280
Iowa (3.8% flat)	~$3,800	~$75,550
Missouri (4.8% top)	~$4,400	~$74,950

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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