Basic Info
Deductions
Insurance Premiums
Your Illinois Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (IL):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
Illinois State Income Tax Information
Illinois applies a flat income tax rate of 4.95% for all residents, meaning your income is taxed at the same rate regardless of how much you earn. Unlike states with tiered tax brackets, this simplifies calculations but offers fewer breakpoints for lower earners. The state allows personal exemptions rather than a standard deduction, and residents may qualify for credits such as the Illinois Earned Income Credit.
Federal Income Tax
Federal income tax applies to all U.S. residents, including those living in Illinois. Rates range from 10% to 37%, depending on income and filing status. These are calculated after subtracting federal deductions and pre-tax contributions.
FICA Taxes
| Component | Rate | Income Cap |
|---|---|---|
| Social Security | 6.2% | $168,600 |
| Medicare | 1.45% | None |
| Additional Medicare | 0.9% | Above $200,000 (single) |
Pre-Tax Deductions
Illinois residents can reduce taxable income by contributing to:
- 401(k), 403(b), and similar retirement accounts
- Health, dental, and vision insurance premiums
- Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA)
- Commuter and transportation benefits
Illinois-Specific Deductions and Credits
| Type | Details |
|---|---|
| Personal Exemption | $2,425 per person (including dependents and spouse if filing jointly) |
| Illinois Earned Income Credit | 20% of the federal EITC (refundable for qualifying low-income workers) |
| Education Expense Credit | 25% credit for K-12 expenses exceeding $250, capped at $750 |
| Retirement Income Exclusion | Social Security, pensions, and retirement plan distributions are not taxed |
Interesting Facts About Illinois Taxes
- Illinois does not tax retirement income like Social Security or pensions.
- With a flat tax, residents pay the same rate whether earning $20,000 or $200,000.
- It’s one of the few states with no local income taxes.
- Illinois allows contributions to Bright Start College Savings to be tax-deductible up to $10,000 ($20,000 for joint filers).
- Although income tax is flat, property tax in Illinois is among the highest in the country.
FAQs – Illinois State Paycheck Taxes
- 1. Does Illinois have a progressive income tax system?
- No. Illinois uses a flat income tax rate of 4.95%.
- 2. Are retirement distributions taxable in Illinois?
- No. The state does not tax qualified retirement income, including pensions, IRAs, and Social Security.
- 3. Does Illinois have a state standard deduction?
- No standard deduction. Instead, personal exemptions reduce taxable income.
- 4. Is there an Illinois tax credit for families?
- Yes, including the Earned Income Credit and Education Expense Credit.
- 5. How are Illinois paycheck taxes different from other states?
- The flat rate structure and retirement income exemptions make it simpler yet unique compared to states with tiered brackets.