If you work in Illinois, you might wonder how much of your paycheck actually lands in your bank account after taxes. Between federal income tax, FICA (Social Security and Medicare), and the state’s flat 4.95% income tax, understanding your take-home pay is key to budgeting or evaluating a new job offer.
This guide walks you through exactly how to calculate taxes on your paycheck in Illinois — step by step, with real examples and easy formulas.
Step 1: Start with Your Gross Pay
Your gross pay is the total amount you earn before any taxes or deductions.
- If you’re salaried: Divide your annual salary by the number of pay periods in a year.
- Example: $60,000 ÷ 24 (semi-monthly) = $2,500 per paycheck.
- If you’re hourly: Multiply your hourly rate by the number of hours worked during the pay period.
- Example: $25/hour × 80 hours (bi-weekly) = $2,000 gross pay.
Step 2: Subtract Pre-Tax Deductions
Before taxes are applied, some deductions come out pre-tax. These lower your taxable income and can help you save on both federal and state taxes.
Common pre-tax deductions:
- 401(k) or 403(b) retirement plan contributions
- Health, dental, or vision insurance premiums
- Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions
- Commuter or transportation benefits
Example:
If your gross pay is $2,000 and you contribute $150 to a 401(k) and $100 to health insurance:
$2,000 − $250 = $1,750 taxable income
Step 3: Calculate Federal Income Tax
Federal income tax uses progressive tax brackets, meaning higher income portions are taxed at higher rates.
For 2025 (single filers), the IRS tax brackets are:
| Tax Rate | Taxable Income |
|---|---|
| 10% | Up to $11,600 |
| 12% | $11,601 – $47,150 |
| 22% | $47,151 – $100,525 |
| 24% | $100,526 – $191,950 |
If you make $60,000 a year, your federal withholding will be roughly $7,000 – $8,000 annually (depending on filing status and deductions).
👉 Tip: Avoid surprises on payday by using our take-home salary estimator before accepting an offer.
Step 4: Deduct FICA Taxes (Social Security + Medicare)
Everyone pays FICA taxes to fund Social Security and Medicare.
| Type | Rate | Applies To |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 of wages (2025) |
| Medicare | 1.45% | On all wages |
| Additional Medicare | 0.9% | Over $200,000 (single) or $250,000 (joint) |
Example:
Taxable pay = $1,750
- Social Security = $108.50
- Medicare = $25.38
→ Total FICA = $133.88
Step 5: Apply Illinois State Income Tax (Flat 4.95%)
Illinois charges a flat income tax rate of 4.95% on your taxable income — the same percentage for everyone regardless of income level.
Formula:
State Tax = Taxable Income × 4.95%
Example:
$1,750 × 4.95% = $86.63 Illinois state tax
👉 Use the New York City paycheck calculator to check NYC-specific withholdings.
Step 6: Subtract Post-Tax Deductions
After taxes, your paycheck might still include post-tax deductions, such as:
- Roth 401(k) or IRA contributions
- Union dues
- Charitable payroll deductions
- Wage garnishments or after-tax insurance
These don’t reduce your taxable income but lower your final take-home pay.
Step 7: Calculate Your Net (Take-Home) Pay
Now combine everything:
Net Pay = Gross Pay − (Pre-Tax Deductions + Federal Tax + FICA + Illinois State Tax + Post-Tax Deductions)
Example: Bi-Weekly Paycheck ($25/hour × 80 hours)
| Category | Amount |
|---|---|
| Gross Pay | $2,000 |
| Pre-Tax Deductions | − $250 |
| Federal Tax | − $250 (approx.) |
| FICA (SS + Medicare) | − $133.88 |
| Illinois State Tax | − $86.63 |
| Net Take-Home Pay | ≈ $1,280 per check |
So a worker earning $25/hour in Illinois typically takes home about 64–66% of gross income after all standard taxes. Oregonians can find local data through the Salem calculator.
Step 8: How Pay Frequency Affects Your Check
Your annual take-home pay doesn’t change, but the number of checks you receive does.
| Pay Frequency | Paychecks per Year | Example Net Pay ($60,000 Salary) |
|---|---|---|
| Weekly | 52 | ≈ $1,025 |
| Bi-Weekly | 26 | ≈ $2,050 |
| Semi-Monthly | 24 | ≈ $2,220 |
| Monthly | 12 | ≈ $4,440 |
Understanding your pay schedule helps you plan bills and savings around paydays.
Step 9: Comparing Illinois with Other States
| State | State Income Tax | Local Tax | Approx. Net Pay on $60k |
|---|---|---|---|
| Illinois | 4.95% flat | None | ≈ $45,000 |
| Indiana | 3.05% flat | 0.5–3% county | ≈ $45,500 |
| Iowa | 4.4–6% progressive | Varies | ≈ $44,000 |
| Florida | 0% | None | ≈ $48,000 |
Illinois’s flat rate makes it predictable — no surprise brackets or city income taxes. People in Detroit can view deductions using the Michigan calculator.
Step 10: Tips to Maximize Your Take-Home Pay in Illinois
- Contribute to pre-tax accounts: 401(k), HSA, or FSA contributions reduce taxable income.
- Update your W-4 and IL-W-4 forms: Ensure withholdings match your current financial situation.
- Track insurance and benefit deductions: Mistakes can happen in employer payroll systems.
- Verify that no city income tax is deducted — Illinois doesn’t have municipal income taxes.
- Budget using net pay instead of gross to avoid cash-flow surprises.
Frequently Asked Questions
1. What percentage of my paycheck goes to taxes in Illinois?
Most workers see about 20–25% of their gross pay withheld for federal, FICA, and Illinois state taxes combined.
2. Does Illinois have local income taxes?
No — Illinois does not have city-level income taxes, unlike some other states.
3. How can I reduce my taxable income in Illinois?
Use pre-tax deductions (401(k), HSA, FSA) and claim accurate withholding allowances on your W-4 and IL-W-4 forms.
4. Are bonuses taxed differently in Illinois?
Yes. Federal law requires a 22% flat withholding on bonuses, plus Illinois’s 4.95% flat state tax.
5. What is the Illinois state income tax rate for 2025?
It’s a flat 4.95%, the same for all income levels.
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.