Published: 26 October 2026 · Updated: 26 October 2026
A single filer on $85,000 in Illinois keeps about $64,565 per year — $5,380 per month after 2026 federal tax, FICA and Illinois's flat 4.95% state tax. Illinois taxes every dollar at the same rate — no brackets to climb, and no Chicago city income tax on top. Enter your salary below.
Illinois is beautifully simple and quietly expensive. One flat 4.95% rate on nearly all your income, a small $2,925 personal exemption, and no standard deduction — so on $85,000 you lose $4,062.71 to Springfield, while Chicago itself adds no city income tax at all.
Researched by MixKhazana Team · Last updated 26 October 2026 · Data: Illinois Dept. of Revenue 2026 rate + exemption ($2,925), IRS Rev. Proc. 2025-32 (tax year 2026), SSA 2026 wage base
Illinois is the rare state where the tax math fits in one sentence: 4.95% of your taxable income, whatever you earn. There are no brackets to climb, no phase-ins, and — unlike New York — no city income tax waiting underneath: Chicago levies no wage tax at all. Illinois starts from your federal adjusted gross income, applies a handful of state adjustments, then subtracts a personal exemption of $2,925 per person ($5,850 for a joint return) before applying the flat rate. There is no standard deduction in the federal sense — the exemption plays that role, and at under $3,000 it is far less generous than the federal $16,100. One more quirk favours retirees: Illinois fully exempts most retirement income, including Social Security, pensions and 401(k)/IRA distributions, which is why the state is oddly retiree-friendly despite its flat rate. Workers, though, pay 4.95% on nearly every dollar — compare it with our Texas paycheck calculator to see what zero state tax is worth.
The flat rate's history explains its politics: Illinois voters rejected a graduated-tax amendment in November 2020, with about 53% voting no, so the flat rate is now constitutionally protected — raising it means raising it equally for everyone. The rate itself has stood at 4.95% since July 2017, while the exemption crept from $2,850 in 2025 to $2,925 in 2026 through an inflation adjustment published by the Illinois Department of Revenue. Predictable, yes — but on a $200,000 salary that predictability costs about $9,800 a year that a Texan never pays.
Jordan, single, earns $85,000 in Chicago and is paid monthly in 2026:
Try a married filing jointly return in the widget: the exemption doubles to $5,850 and the federal brackets widen, even though the Illinois rate never moves.
| Figure | 2026 value |
|---|---|
| Illinois flat rate | 4.95% (all income) |
| Personal exemption (single / MFJ) | $2,925 / $5,850 |
| Exemption phase-out | AGI over $250,000 / $500,000 |
| Standard deduction | None (exemption instead) |
| Chicago city income tax | $0 — none |
| Rate unchanged since | 1 July 2017 |
On an $85,000 salary in Illinois in 2026, a single filer keeps about $64,565 per year — $5,380 per month. Deductions are federal tax of $9,870, FICA of $6,502.50 and Illinois tax of $4,062.71. Chicago adds no city income tax. Enter your own salary in the calculator above for a personal estimate.
Illinois taxes individuals at a flat 4.95% on taxable income, regardless of income level or filing status. The rate has been unchanged since 1 July 2017 and applies after the personal exemption is subtracted.
The personal exemption is $2,925 per person for 2026 ($5,850 for a joint return), up from $2,850 in 2025. It is subtracted from income before the 4.95% rate applies, and it is lost entirely once AGI exceeds $250,000 ($500,000 joint). Illinois has no standard deduction.
No. Unlike New York City, no Illinois city — including Chicago — levies a separate wage or earnings tax on residents. Your Illinois state line is the only state-level income tax on the stub.
No — Illinois fully exempts most retirement income, including Social Security benefits, pensions and 401(k)/IRA distributions. That makes it unusually retiree-friendly despite the flat rate on working income.
Worse for workers: on $85,000, an Illinois single filer pays $4,062.71 in state tax that a Texan never sees, leaving about $2,970 a year less than the same salary in Texas (before Washington-style program differences). Against California or New York, though, the flat 4.95% looks cheap at higher incomes.
The 4.95% flat rate and the $2,925 exemption come from the Illinois Department of Revenue's 2026 withholding guidance (Booklet IL-700-T), the federal brackets and $16,100 standard deduction from IRS Rev. Proc. 2025-32, and the $184,500 Social Security wage base from the SSA.