2026 Tax Tables

Illinois Payroll Withholding Calculator (2026)

Illinois imposes a flat 4.95% income tax on wages and salaries, a rate that has been in effect since 2017 under the Illinois Income Tax Act. Employers use the IL-W-4 form to collect the employee's withholding allowances. Each allowance reduces the employee's annualized wages by $2,425 before applying the 4.95% rate, effectively reducing withholding for employees who claim them.

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State Tax Rate

4.95% flat

State W-4 Form

IL-W-4

Tax Year

2026

Key Facts

  • Flat 4.95% rate on all wages (unchanged since 2017)
  • IL-W-4 personal exemption allowance: $2,425 per allowance claimed
  • No separate filing status — allowances drive the deduction
  • No local income tax in Illinois (unlike Pennsylvania or Ohio)

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Illinois Withholding — Frequently Asked Questions

What is the Illinois income tax rate for 2026?

Illinois uses a flat 4.95% income tax rate on all wages. This rate has been unchanged since 2017 when it was increased from 3.75%.

What is the IL-W-4 allowance value for 2026?

Each allowance claimed on the Illinois IL-W-4 form reduces the employee's annualized income by $2,425. An employee claiming 3 allowances would reduce their taxable annual income by $7,275 before applying the 4.95% rate.

Does Illinois use the federal W-4?

No. Illinois has its own IL-W-4 form. The federal W-4 and IL-W-4 are separate — employees should complete both.

Does Illinois have a standard deduction for withholding?

Illinois does not have a standard deduction in the traditional sense. Instead, employees claim personal exemption allowances on the IL-W-4. Each allowance ($2,425) functions like a personal exemption deduction from income.