Illinois Take-Home Pay Calculator (2026)

Illinois has a flat income tax rate of 4.95%. The Illinois constitution requires a flat rate, meaning all income is taxed at the same percentage. There was a ballot measure in 2020 to amend the constitution and allow a graduated rate structure, but voters rejected it. The 4.95% rate is therefore fixed unless there is another constitutional amendment.

Illinois is one of the most tax-friendly states for retirement income. The state fully exempts Social Security, pension income, 401k distributions, and IRA withdrawals from state income tax. For current workers, this exemption does not affect the paycheck. But it matters a great deal for long-term planning. Someone who retires in Illinois pays no state tax on the money they draw from retirement accounts.

The state's personal exemption is $2,425 per person for 2026. For a single filer, that exempts the first $2,425 from state tax. The exemption is not as large as a standard deduction in a state that conforms to federal deductions, which means Illinois taxable income is often higher than taxable income in states with larger deductions. At $60,000 of gross income, most Illinois workers owe roughly $2,840 in state income tax.

Illinois cities and counties do not impose a separate local income tax, which keeps the calculation simple. That said, Illinois has a reputation for high property taxes, particularly in the Chicago suburbs, and high sales taxes in Chicago (10.25% combined). The income tax burden at 4.95% is moderate, but the total state and local tax picture depends heavily on where in Illinois you live and whether you own property.