Illinois has a flat 4.95% state income tax — no brackets, same rate at $40k or $140k. On a $60,000 salary you take home $47,398/year ($3,950/month). Full breakdown, salary table, and Chicago vs. the rest of IL explained.
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⚡ Quick Summary
- Illinois has a flat 4.95% state income tax — same rate whether you earn $40k or $200k
- On a $60,000 salary: $47,398/year take-home ($3,950/month)
- Illinois personal exemption is $2,425 — it lowers your state taxable income
- Chicago has no city income tax — unlike NYC or Philadelphia
Illinois workers don't have to worry about climbing into a higher state tax bracket. The state levies a flat 4.95% on all income — period. What you do need to know is how the personal exemption, FICA, and federal withholding stack on top of that flat rate to determine exactly what lands in your bank account. Here's the full picture.
How Illinois Income Tax Works
Illinois has used a flat income tax since 1969. The rate has changed a few times over the years; it's been 4.95% since 2017 after a temporary increase from 3.75%. Voters rejected a constitutional amendment in 2020 that would have allowed graduated rates — so the flat structure is locked in for the foreseeable future.
The state applies one offset before calculating your tax: the personal exemption of $2,425 per person (2025). A single filer gets one exemption. A married couple gets two. Each dependent you claim adds another $2,425. This works differently from the federal standard deduction — it's a flat per-person reduction, not a large standard amount.
📊 Key Number
At $60,000 gross income, your Illinois state tax is $2,850/year — calculated as ($60,000 − $2,425) × 4.95%. That's $237.50/month withheld for the state. Add federal income tax ($5,162), Social Security ($3,720), and Medicare ($870) and your total withholding is $12,602.
You'll also pay three federal deductions on every Illinois paycheck: federal income tax based on your W-4 elections, Social Security at 6.2% (capped at the $176,100 wage base in 2025), and Medicare at 1.45%. Illinois does not have a state disability insurance (SDI) or paid family leave deduction — your employer handles unemployment insurance separately and it doesn't appear on your stub.
Take-Home Pay at Every Salary Level
These figures assume single filing status, 2025 federal standard deduction ($15,000), Illinois personal exemption ($2,425), and no pre-tax deductions (401k, health insurance, etc.). Actual take-home will be higher if you have pre-tax benefits.
| Annual Salary | Federal Tax | Social Security | Medicare | IL State Tax | Take-Home/Year | Take-Home/Month | Effective Rate |
|---|---|---|---|---|---|---|---|
| $40,000 | $2,762 | $2,480 | $580 | $1,860 | $32,318 | $2,693 | 19.2% |
| $50,000 | $3,962 | $3,100 | $725 | $2,355 | $39,858 | $3,322 | 20.3% |
| $60,000 | $5,162 | $3,720 | $870 | $2,850 | $47,398 | $3,950 | 21.0% |
| $80,000 | $9,214 | $4,960 | $1,160 | $3,840 | $60,826 | $5,069 | 24.0% |
| $100,000 | $13,614 | $6,200 | $1,450 | $4,830 | $73,906 | $6,159 | 26.1% |
| $120,000 | $18,047 | $7,440 | $1,740 | $5,820 | $86,953 | $7,246 | 27.5% |
Notice that effective rates rise even though Illinois's state rate is flat. That's the federal brackets doing the work — as you earn more, a larger share of your federal income hits the 22% bracket. The Illinois state portion stays proportional.
Full Tax Breakdown: $60,000 in Illinois
Here's the math line by line for a single Illinois worker earning $60,000 with no pre-tax deductions:
| Tax / Deduction | Calculation | Annual Amount | Per Paycheck (biweekly) |
|---|---|---|---|
| Federal income tax | 10%/$12% brackets on $45,000 taxable income | $5,162 | $198.54 |
| Social Security | $60,000 × 6.2% | $3,720 | $143.08 |
| Medicare | $60,000 × 1.45% | $870 | $33.46 |
| Illinois state income tax | ($60,000 − $2,425) × 4.95% | $2,850 | $109.62 |
| Total withheld | $12,602 | $484.69 | |
| Take-home | $47,398 | $1,822.92 |
The federal standard deduction ($15,000 for single filers in 2025) covers the first chunk of your federal taxable income. Illinois gives you only the $2,425 personal exemption — so more of your gross income is exposed to the state tax compared to states with larger state-level deductions.
Chicago: No City Income Tax
This is the part Illinois workers often don't realize they have going for them. Chicago is one of the largest cities in the US — and it charges zero city income tax. Compare that to New York City workers who pay up to 3.876% on top of state and federal, or Philadelphia workers who pay 3.75% in city wage tax.
💡 Action Tip
If you're considering a job move to Chicago from NYC or Philadelphia, your effective tax rate drops significantly — even if the Illinois state rate (4.95%) feels high. A $80,000 salary in Chicago nets you about $60,826. The same salary in NYC would net around $55,700 after federal + NY state + NYC taxes. That's $5,126 more per year in Chicago.
No Illinois city or county can add a local income tax. The state constitution preempts it. That uniformity means a worker in Rockford, Peoria, Springfield, or Chicago all face the same state+FICA picture — just the federal bracket math changes based on salary.
Illinois vs. Neighboring States
How does Illinois's 4.95% flat tax compare to what your neighbors are paying? Here's $60,000 across the Midwest:
| State | State Income Tax | State Tax on $60k | Take-Home on $60k | vs. Illinois |
|---|---|---|---|---|
| Texas | None | $0 | $50,248 | +$2,850/year |
| Indiana | 3.05% flat | ~$1,764 | ~$48,484 | +$1,086/year |
| Michigan | 4.25% flat | ~$2,312 | ~$47,956 | +$558/year |
| Illinois | 4.95% flat | $2,850 | $47,398 | — |
| Wisconsin | Graduated (up to 5.3%) | ~$2,679 | ~$47,289 | −$109/year |
| Iowa | 3.8% flat (2025) | ~$2,280 | ~$47,868 | +$470/year |
Illinois sits below the Midwest median for take-home. Indiana and Michigan both edge it out. Texas is the clear winner if you never want to pay state income tax — but Texas has no state-funded programs that Illinois offers, including a stronger public university system and no-fault unemployment benefits for workers.
📊 Key Number
Crossing the border from Illinois to Indiana at the same $60,000 salary puts about $1,086 more per year in your pocket — roughly one extra car payment or a month of groceries. Over a 10-year career, that compounds to over $10,000 in additional take-home.
You can run your exact numbers using the Illinois paycheck calculator or compare against Texas take-home pay if you're considering a move.
How to Keep More of Your Paycheck
Three moves that reduce what Illinois (and the IRS) take from your paycheck:
1. Contribute pre-tax to your 401(k). Every dollar you put into a traditional 401(k) reduces both your federal taxable income and your Illinois taxable income. At $60,000, contributing $6,000/year saves roughly $720 in federal tax and $297 in Illinois state tax — $1,017 total. Your take-home barely dips, but your retirement account grows.
2. Check your W-4 for accuracy. Illinois withholding is straightforward, but federal withholding errors add up. If you got a large refund last year, you're giving the government an interest-free loan. If you owed money, bump up your withholding by adding a dollar amount to Step 4(c) on your W-4. Use the Illinois paycheck calculator to verify your current withholding matches what you expect.
3. Use pre-tax benefits if your employer offers them. Health insurance premiums, HSA contributions, and commuter transit benefits all reduce your taxable income before Illinois calculates its 4.95%. A $200/month health premium saves $119/year in Illinois state tax alone — plus federal savings on top.
💡 Action Tip
If you have dependents, make sure you are claiming the Illinois personal exemption for each one ($2,425/person). On your IL-W-4 form, line 1 should reflect your total exemptions. Most workers set this and forget it — but adding a child bumps your exemption by $2,425 and saves $120/year in state tax automatically.
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📋 Disclaimer
The numbers in this guide are estimates based on 2025 federal and Illinois state tax rates for illustrative purposes. Individual tax situations vary based on filing status, deductions, credits, pre-tax benefits, and other factors. We are not accountants or tax advisors. Please consult a qualified tax professional before making financial decisions.
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