Illinois Tax Calculator

Illinois imposes a flat income tax rate of 4.95% on all net income for individuals in 2025. This flat rate applies regardless of income level — a person earning $30,000 and someone earning $500,000 pay the same percentage. The only subtraction before applying the rate is the personal exemption ($2,425 for single filers, $4,850 for married filing jointly). Illinois voters rejected a graduated income tax amendment in November 2020, keeping the flat rate system.

Illinois provides a personal exemption of $2,425 for single filers and head of household filers, and $4,850 for married filing jointly for 2025. This exemption reduces Illinois taxable income before the 4.95% rate is applied. Unlike many states, Illinois does not have a standard deduction — the personal exemption is the only adjustment to gross income for most wage earners. This relatively modest exemption means nearly all earned income is subject to Illinois tax.

No. Illinois does not tax Social Security benefits, regardless of income level. This is a significant benefit for retirees. Illinois also exempts most retirement income including pension income from qualified plans, 401(k) distributions, traditional and Roth IRA distributions, and military retirement pay. This exemption makes Illinois attractive for retirees compared to states like Minnesota or Utah that tax Social Security. This calculator covers only wage and salary income.

On $75,000 as a single filer in 2025: Illinois personal exemption = $2,425. Illinois taxable income = $75,000 - $2,425 = $72,575. Illinois tax = $72,575 x 4.95% = $3,592. That is an effective Illinois rate of 4.79%. Federal tax adds approximately $8,963 (standard deduction $15,000 leaves taxable income of $60,000, taxed at 10% and 12%). FICA adds $5,738. Total burden is roughly $18,293, leaving net take-home of about $56,707.

Illinois cities do not impose broad local income taxes like some Ohio or Kentucky cities, with one major exception: Chicago. Chicago levies a 2.25% personal property replacement tax and, for employees working within city limits, a city income tax structure. The Chicago tax applies to wages earned within the city. This calculator computes state Illinois tax only. Chicago residents and workers should add approximately 2.25% to their effective tax rate for a complete picture of their total burden.

Illinois's flat 4.95% rate sits in the middle of Midwestern states. Indiana uses a flat 3.15% (lower). Wisconsin uses graduated rates up to 7.65% (higher). Michigan uses a flat 4.25% (slightly lower). Iowa uses graduated rates up to 5.7% (higher). Missouri uses graduated rates up to 4.8% (similar). Kentucky's flat 4.5% is slightly lower. Among all flat-tax states nationally, Illinois's 4.95% is above average. The lack of a standard deduction — only the modest $2,425 exemption — makes Illinois's effective burden higher than the headline rate comparison suggests.

Illinois exempts several income categories from state tax: Social Security benefits (all amounts), pension and retirement income from qualified plans (401k, IRA, pension — primarily for seniors), military retirement pay, compensation paid to active-duty military members stationed outside Illinois, railroad retirement benefits, and certain disability benefits. Most wage and salary income for working-age residents is fully taxable at 4.95% after the personal exemption. Interest and dividends from investments are taxable at the same flat rate.

Yes. Illinois imposes an estate tax on estates valued above $4 million (as of 2025). The estate tax rate ranges from 0.8% to 16%, depending on the estate size. This is notable because the federal estate tax exemption is over $13 million, so some Illinois estates face state estate tax without any federal estate tax. Illinois does not have a separate inheritance tax — the estate tax is paid by the estate, not by individual beneficiaries who receive assets.

Illinois residents use the same federal income tax brackets as all US taxpayers. For 2025 single filers: 10% on $0-$11,925; 12% on $11,925-$48,475; 22% on $48,475-$103,350; 24% on $103,350-$197,300; 32% on $197,300-$250,525; 35% on $250,525-$626,350; 37% above $626,350. The federal standard deduction for 2025 is $15,000 for single filers and $30,000 for married filing jointly. Illinois does not allow a deduction for federal taxes paid (unlike Alabama), so state and federal taxes are computed independently.

FICA (Federal Insurance Contributions Act) taxes apply to all Illinois workers regardless of state tax rules. For 2025, Social Security takes 6.2% on the first $176,100 of wages. Medicare takes 1.45% on all wages with an additional 0.9% surtax on wages above $200,000 (single) or $250,000 (married). For an Illinois resident earning $75,000, FICA adds $5,738 in taxes on top of state and federal income taxes. Self-employed residents pay the full 15.3% self-employment tax (both employee and employer halves).

Illinois offers several tax credits that can reduce state tax liability: the Property Tax Credit (5% of Illinois property taxes paid, reducing state income tax dollar-for-dollar), the Earned Income Credit (matching 20% of the federal EITC), the Education Expense Credit (25% of qualified K-12 education expenses up to $500 credit), and the Dependent Care Credit for child care expenses. This calculator does not model tax credits. If you own a home or qualify for the EITC, your actual Illinois tax bill will be lower than the estimate shown.

Illinois is generally considered a high-tax state when all taxes are combined. While the 4.95% income tax is moderate, Illinois has the second-highest property taxes in the US (average effective rate around 2.07%), a 10.25% combined sales tax rate in Chicago (state 6.25% + Cook County + city), and high commercial and motor fuel taxes. The total tax burden for Illinois residents ranks among the top 5 states nationally when income, property, and sales taxes are combined. However, for income tax alone, 4.95% flat is competitive with many states.