Illinois Income Tax Calculator (2025)
Enter your income and filing details to calculate your 2025 Illinois state tax, federal income tax, FICA payroll taxes, and final take-home pay. Illinois uses a flat 4.95% state income tax rate that applies to all income levels. You can also factor in retirement income exemptions, dependents, the property tax credit, and whether you are self-employed. All results update instantly.
How Illinois income tax works
Illinois levies a single flat income tax rate of 4.95% on all taxable income, regardless of how much you earn. This makes it one of the simpler state tax systems in the country: unlike federal taxes, there are no graduated brackets and your rate does not change as your income rises. Taxable income for Illinois purposes is your gross income minus the personal exemption ($2,850 per filer in 2025, doubled for married couples filing jointly) and any qualifying subtractions such as retirement income. The result is that effective rates are slightly below the 4.95% statutory rate for most residents, because the exemption shelters the first portion of income from tax.
Federal income tax and FICA alongside state tax
Illinois residents also owe federal income tax at graduated rates ranging from 10% to 37% depending on taxable income and filing status, plus FICA payroll taxes of 6.2% for Social Security (on wages up to the $176,100 wage base) and 1.45% for Medicare (on all wages, with an additional 0.9% above $200,000 for single filers or $250,000 for joint filers). If you are self-employed you pay both halves of FICA, effectively 15.3%, but you can deduct half of that as an adjustment to income for federal purposes. Together, state, federal, and FICA taxes determine how much of each dollar you actually keep.
Illinois-specific exemptions and credits
Several Illinois-specific rules can meaningfully reduce your bill. Most retirement income is exempt: pension payments, Social Security benefits, 401(k) and IRA distributions are generally not taxed at the state level, which makes Illinois relatively retirement-friendly compared with many other states. Illinois also offers a property tax credit equal to 5% of the property taxes you paid on your principal Illinois residence during the year, which directly offsets your state tax bill. Families with private school costs may qualify for a K-12 education expense credit up to $750. Contributions to the state-sponsored Bright Start college savings plan are deductible from Illinois income up to $10,000 per year for single filers.
How to read your results
The calculator shows three separate tax lines, Illinois state tax, federal income tax, and FICA payroll taxes, so you can see exactly where each dollar goes. The effective rate for each type is your actual tax for that category divided by gross income, which is always lower than the stated statutory rate. The take-home figure is what remains after all three types of tax. Monthly take-home is simply the annual figure divided by 12. If you pay property taxes, enter the amount to see the 5% credit applied automatically. All figures are estimates based on 2025 rates and assume the income is fully earned (wages or self-employment), with no investment income, itemized federal deductions beyond what you enter, or other adjustments.
Illinois income tax at a glance (2025)
| Filing status | Flat tax rate | Personal exemption | Per dependent |
|---|---|---|---|
| Single | 4.95% | $2,850 | $2,850 |
| Married filing jointly | 4.95% | $5,700 | $2,850 |
| Married filing separately | 4.95% | $2,850 | $2,850 |
| Head of household | 4.95% | $2,850 | $2,850 |
Illinois uses a single flat rate for all filing statuses. Personal exemptions reduce taxable income.
Frequently asked questions
What is the Illinois state income tax rate for 2025?
Illinois taxes all income at a flat rate of 4.95% for tax year 2025. The rate applies to all filing statuses and all income levels, so there are no brackets to navigate. Your effective rate will be slightly below 4.95% because the personal exemption reduces taxable income.
Does Illinois tax Social Security or retirement income?
No. Illinois does not tax Social Security benefits, pension income, 401(k) distributions, IRA withdrawals, or most other retirement income. This is one of the most generous retirement income exemptions in the country and makes Illinois relatively affordable for retirees from a state tax standpoint.
What is the Illinois personal exemption?
For 2025, the Illinois personal exemption is $2,850 per taxpayer. Single filers get one exemption ($2,850), married couples filing jointly get two ($5,700), and each qualifying dependent adds another $2,850. The exemption is subtracted from income before applying the 4.95% rate.
Is there a local income tax in Illinois?
No. Illinois cities and counties do not levy a separate local income tax. The only income taxes Illinois residents owe are the flat 4.95% state tax and the applicable federal taxes. Chicago does levy local taxes on certain transactions but not on earned income.
How does the Illinois property tax credit work?
Illinois homeowners can claim a property tax credit equal to 5% of the property taxes paid on their principal Illinois residence during the tax year. The credit directly reduces your Illinois income tax bill and is non-refundable, meaning it can reduce your tax to zero but you do not receive a refund if it exceeds your tax liability.
Do self-employed people pay a different Illinois rate?
No. Self-employed individuals pay the same 4.95% Illinois flat rate on net self-employment income. However, at the federal level, self-employed people owe self-employment tax (15.3%) in place of employee FICA, and they can deduct half of that tax as an adjustment to income before calculating both federal and Illinois taxes.
How does Illinois tax compare with neighboring states?
Illinois sits in the middle of the pack for state income tax burden among its neighbors. Indiana has a flat rate of 3.05%, Wisconsin uses graduated brackets topping out around 7.65%, Missouri tops out around 4.8%, and Iowa has a flat 3.8% rate. Ohio uses a graduated system with a top rate of 3.5%. Illinois flat 4.95% rate is competitive for high earners but less favorable for lower-income filers compared with flat-tax states with lower rates.