Illinois Income Tax Calculator IL Tax Rates 2024

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In addition to withholding federal and state taxes, part of your gross income might also have to contribute to deductions. These are known as “pre-tax deductions” and include contributions to retirement accounts and some health care costs. For example, when you look at your paycheck you might see an amount deducted for your company’s health insurance plan and for your 401k plan. Pre-tax deductions result in lower take-home, but also means less of your income is subject to tax. Some deductions are “post-tax”, like Roth 401(k), and are deducted after being taxed. Your employer will also withhold money from each of your paychecks to put toward your federal income taxes.

If I live in Illinois but work in another state, how do I calculate my taxes?

The percentage that’s withheld will depend on things such as your income, your filing status (single, married filing jointly, etc.) and any tax credits you indicate on your W-4 form. Certain high-income taxpayers in Illinois are not eligible for the exemption allowance. Illinois does not have a standard deduction for state income tax purposes. Instead, Illinois offers a personal exemption to reduce taxable income. In Illinois, an exemption allowance is a specific amount deducted from taxable income for each taxpayer (including you and a spouse) and dependents, directly reducing the amount subject to tax. Illinois makes filing state income taxes illinois income calculator straightforward with its flat tax rate of 4.95% for all individual taxpayers.

Just enter the wages, tax withholdings and other information required below and our tool will take care of the rest. The most important value of our law firm is our commitment to our clients. We understand the serious nature of divorce and family law, and we are dedicated to helping you achieve the best possible outcome for your family and your individual set of circumstances. Filing your Illinois state income tax doesn’t have to be overwhelming. Whether you’re a full-year resident, part-year resident, or nonresident, TurboTax is here to help simplify the process. Maximize your earnings and make your payckeck stretch further with our financial planning tips.

Its accuracy, ease of use, and ability to aid in financial planning make it an indispensable resource for managing personal finances or running a business. Illinois uses a flat tax system for income, meaning all taxpayers are taxed at the same 4.95% rate, regardless of income level. Understanding your tax obligations is crucial for financial planning, and our calculators are here to simplify that process. With user-friendly interfaces and precise calculations, you can easily estimate how much you owe or could get back from the government at the end of the tax year.

Russell D. Knight has been practicing family law as a Chicago divorce lawyer since 2006. Russell D. Knight amicably resolves tough cases while remaining a strong advocate for his client’s interests. If your W4 on file is in the old format (2019 or older), toggle “Use new Form W-4” to change the questions back to the previous form. However if you do need to update it for any reason, you must now use the new Form W-4. 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.

Payroll management system

For each pay period, your employer will withhold 6.2% of your earnings for Social Security taxes and 1.45% of your earnings for Medicare taxes. Together these are called FICA taxes, and your employer will pony up a matching contribution. Because of this responsibility, judges will be eager to appoint a fiancial expert (usually an accountant) to determine exactly what is the businessperson’s legitimate income. Child support and maintenance (formerly known as alimony) in Illinois are determined by both parties’ incomes. There are state-level exemptions for all type of filers and dependents.

More From iCalculator™

Your employer will withhold money from each of your paychecks to go toward your Illinois state income taxes.
Russell D. Knight amicably resolves tough cases while remaining a strong advocate for his client’s interests.
However, it does offer several tax credits and exemptions based on specific circumstances, such as the Earned Income Credit and property tax credits.
We’ll help you get Illinois-specific deductions and credits you qualify for to keep more money in your pocket.
Social Security and Medicare are two more deductions on your paycheck, commonly known as FICA taxes.

There are state-level exemptions for all types of filers and dependents. 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. Illinois applies per-gallon alcohol excise taxes based on the alcohol content of the beverage being sold. Beer will generally be subject to a rate of 23 cents per gallon while wine and liquor are subject rates of $1.39 and $8.55 per gallon, respectively. To estimate your total compensation package, please make your selections from the dropdowns below.

Perhaps office supplies, repairs on your office computers, building repairs, or even purchasing your workers’ suitable clothing for their job (e.g. a plumber should be wearing a boiler suit). While they are little things that not many people think about, your business thrives on these tiny details and therefore you are able to have tax deductions on them. For more details, review the Illinois Department of Revenue’s full list of individual income tax credits. Select a specific Illinois tax calculator from the list below to calculate your annual gross salary and net take home pay after deductions for that tax year. Explore deductions and credits available, such as contributions to retirement accounts, to potentially lower your taxable income.

Making mistakes is a part of starting a business, but knowing what mistakes to avoid will help small business owners in their long-term journey to success. The state of Illinois collects 66.5 cents for every gallon of regular gasoline. These taxes comprise a combination of sales tax, excise taxes paid at the pump and wholesaler/retailer taxes. The Earned Income Tax Credit is currently 20% of the federal credit by the same name. For tax year 2024, the maximum state credit a person can claim is $1,566. The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses.

Volume Calculators

These reduce a taxpayer’s total tax bill by some amount, which is in contrast to tax deductions, which only reduce a taxpayer’s taxable income. If you paid $1,000 in property taxes in 2024, you could claim a credit of $50 on your income tax return, which equates to $50 less that you end up paying in taxes. All of the tax calculators on iCalculator™ US are updated with the latest Illinois tax tables including tax rates for the 2025 tax year. Use iCalculator™ US’s paycheck calculator tailored for Illinois to determine your net income per paycheck. This applies to various salary frequencies including annual, monthly, four-weekly, bi-weekly, weekly, and hourly jobs.

This tool is for illustrative purposes only an provides benefits-eligible employees an estimate of their total compensation based on specific options selected by the employee. This tool is useful for both current employees and prospective candidates. This is different from a standard deduction, which is a fixed amount that reduces taxable income, available to all taxpayers regardless of dependents. Quickly calculate your take-home pay in Illinois with the Illinois Paycheck Calculator, a valuable tool for anyone earning an income in Illinois.

We’ll help you get Illinois-specific deductions and credits you qualify for to keep more money in your pocket. From earned income tax credits to property tax credits, we’ll guide you every step of the way to maximize your refund. Connect with a TurboTax expert for personalized tax advice or to handle filing for you.

Using our Illinois Salary Tax Calculator

If you double-claim allowances while holding more than one job, you’ll owe more money at tax time. Maintenance and child support are both determined based on the net income of both parties. Learn how federal and Illinois state tax and payroll deductions impacts your salary. There’s no specific payroll tax in Illinois, but employers are obligated to contribute to the state’s unemployment insurance fund. Taxable income is the portion of an individual’s or corporation’s income used to calculate how much tax they owe to the government in a specific tax period. It includes wages, salaries, bonuses, capital gains, and income from other sources such as investments or rental properties.

There are state-level exemptions for all type of filers and dependents.
Exemptions are certain amounts that can be subtracted from gross income based on the taxpayer’s circumstances, like dependent family members.
Illinois paycheck calculator estimates the taxes deducted from your earnings as an employee, including Federal, Illinois State, Social Security and Medicare taxes.
Rather, “net income” for the purpose of support is calculated by determining the gross income of the parties.
That means the money comes out of your paycheck before income taxes do.

It’s based on your income and filing status, with a progressive tax system in place. However, you’ll only pay a higher tax rate on the portion of your income that exceeds a specific threshold. This means that no matter how much money you make, you pay that same rate. Sales and property taxes in Illinois are among the highest in the nation. Our Illinois Income Tax Calculator is a powerful tool that allows you to quickly and accurately estimate your state income tax liability. With a user-friendly interface, you can input your income, select your filing status, and make any necessary deductions to calculate your tax liability.