IllinoisSalary Calculator 2026 — Take-Home Pay After Federal & State Taxes

Illinois has a constitutionally mandated flat income tax rate of 4.95%, applying uniformly to all taxable income. A 2020 ballot measure to replace the flat tax with a graduated system was defeated by voters. Illinois does not conform to the federal standard deduction — instead, it offers a personal exemption of $2,425 per person (2026). The flat rate benefits high earners (who face lower rates than in progressive states) and is straightforward to calculate. However, Illinois compounds this with high property taxes — consistently ranked in the top 2–3 nationally — and a 6.25% state sales tax plus local add-ons. Chicago levies no additional local income tax beyond the state 4.95%. Illinois also exempts retirement income (Social Security, pension, 401k distributions) from state tax, making it attractive for retirees despite the overall high property tax burden.