Understand Illinois's uniform 4.95% individual income tax rate, property tax credits, and Cook County payroll rules for Chicago workers.
Illinois Uniform 4.95% Flat Income Tax Rate
The State of Illinois levies a flat 4.95% individual income tax rate on net taxable wages. Unlike progressive tax states (such as neighboring Wisconsin or Iowa), every taxable dollar earned in Illinois is assessed at the same 4.95% statutory rate.
Calculate your Illinois net take-home salary with our Illinois Income Tax Calculator.
Illinois Standard Exemptions & Property Tax Credit
Illinois provides baseline personal exemptions for taxpayers and dependents:
- Personal Exemption: $2,775 per taxpayer, spouse, and qualified dependent (indexed annually for inflation).
- Illinois Property Tax Credit (Form IL-1040): Homeowners can claim a 5% credit on their property taxes paid on their principal Illinois residence against their state income tax liability.
- K-12 Education Expense Credit: Parents can claim up to $750 for qualified school tuition and book fees exceeding $250.
Chicago & Cook County Payroll Rules
Unlike New York City or Philadelphia, the City of Chicago does not levy a local resident municipal income tax. Workers in Chicago, Naperville, Aurora, and Rockford pay only the state 4.95% rate and federal taxes.
Estimate your Illinois paycheck withholdings and net monthly salary with our Illinois Income Tax Calculator.