Illinois Paycheck Calculator

Calculate your take-home pay after federal & Illinois taxes

Updated for 2023 tax year on Mar 15, 2023

Paycheck calculators by state

Paycheck calculator for Illinois

Understanding your Illinois paycheck

An Illinois paycheck can sometimes feel like a puzzle with many pieces. It combines your hard work and dedication with taxes and deductions that may leave you scratching your head. Fear not. This guide aims to unravel the mystery and help you better comprehend your paycheck.

You’ll find gross pay at the heart of every paycheck – your earnings before taxes and deductions. But get attached to something other than that number! Various deductions will be taken out before you see your final take-home pay. Let’s dive into these deductions and determine where your hard-earned money goes.

Federal income tax is the first item that comes to mind when discussing paycheck deductions. It’s based on your income and filing status, with a progressive tax system in place. The more you earn, the more you need to pay IRS. However, you’ll only pay a higher tax rate on the portion of your income that exceeds a specific threshold.

In contrast, Illinois has a flat income tax rate. No matter your income, the same percentage is withheld from your paycheck. This simplicity can be a double-edged sword, making tax calculations more straightforward, but it may only sometimes feel fair to all income levels.

Social Security and Medicare are two more deductions on your paycheck, commonly known as FICA taxes. These taxes fund essential social programs and are shared between employees and employers. Your contributions today help ensure the future stability of these programs for you and others.

Apart from taxes, various other deductions may apply to your paycheck. These include retirement contributions, health insurance premiums, or even wage garnishments. Each situation is unique, so you must be aware of the specific deductions that apply to you.

With all these deductions accounted for, you’ll arrive at your net pay, which lands in your bank account. It’s important to review your paycheck regularly to ensure the accuracy of the deductions and to understand how your financial decisions impact your take-home pay.

When starting a new job in Illinois, you’ll be asked to fill out a Form W-4. The IRS has revised the W-4 form and no longer uses allowances. Instead, the form now focuses on your filing status, income, dependents, and any additional income or deductions you might have. This information helps your employer determine the appropriate amount of federal income tax to withhold from your paycheck.

Reviewing and updating your Form W-4 periodically is crucial, especially after significant life events like getting married, having a child, or buying a house. This will help you avoid under or over-withholding, which can lead to unpleasant surprises come tax time.

So, what can you do to optimize your tax situation? One option is contributing to saving plans, such as a 401(k) or a Health Savings Account (HSA). These contributions are typically made pre-tax, and you can lower your taxable income, save on taxes, and invest in your future at the same time.

Calculate your Illinois paycheck

Illinois tax year starts from July 01 the year before to June 30 the current year. So the tax year 2022 will start from July 01 2021 to June 30 2022.

Calculating your Illinois state income tax is similar to the steps we listed on our Federal paycheck calculator:

1. figure out your filing status
2. work out your adjusted gross income [Net income – Adjustments = Adjusted gross income]
3. calculate your taxable income [Adjusted gross income – (Itemized deductions + Exemptions) = Taxable income]
4. understand your income tax liability [Taxable income × Income tax rate = Income tax liability]
5. minus any tax liability, deductions, withholdings [Net income – (Income tax liability + Pre-tax deductions + Post-tax deductions + Withholdings) = Your paycheck]

State payroll tax

There is no state-level payroll tax.

State income tax brackets

State standard deduction

There are no state-level standard deductions.

State exemptions

There are state-level exemptions for all types of filers and dependents. Refer to Tax Foundation for more details.

FAQs