Illinois Paycheck Calculator | IL Tax Rates 2024 (2024)

Calculate your take-home pay per paycheck for salary and hourly jobs after federal & Illinois taxes

Updated for 2024 tax year on Jul 06, 2024

What was updated?Fixed calculation error with federal and state payroll taxes

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How to calculate your Illinois paycheck

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

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

1. Determine your gross income
   • Annual salary
     Annual salary = Gross income
   • Hourly wage
     Hourly wage × Hours worked per day × Days worked per week × Weeks worked per year = Your weekly paycheck
2. Work out your total federal income tax
   1. Gross income adjusted
      Gross income − Pre-tax deductions = Gross income adjusted
   2. Federal taxable income
      Gross income adjusted − Federal standard/itemized deductions = Federal taxable income
   3. Federal income tax liability
      Federal taxable income × Federal income tax rate = Federal income tax liability
   4. Federal payroll tax liability
      Gross income adjusted × Federal payroll tax rate = Federal payroll tax liability
3. Calculate your total Illinois state income tax
   1. State taxable income
      Gross income adjusted − (State itemized deductions + State exemptions) = State taxable income
   2. State income tax liability
      State taxable income × State income tax rate = State income tax liability
4. Figure out your net pay
   You need to account for any other deductions such as health insurance, 401(k) contribution, as well as additional withholdings.
   Gross income − (Total income tax liability + Total payroll tax liability + Total pre-tax deductions + Total post-tax deductions + Total withholdings) = Your net pay
5. Divide your net pay by your pay frequency
   
   • Daily
     Your net pay / Days worked per week / Weeks worked per year = Your daily paycheck
   • Weekly
     Your net pay / 52 = Your weekly paycheck
   • Bi-weekly
     Your net pay / 26 = Your bi-weekly paycheck
   • Semi-monthly
     Your net pay / 24 = Your semi-monthly paycheck
   • Monthly
     Your net pay / 12 = Your monthly paycheck
   • Quarterly
     Your net pay / 4 = Your quarterly paycheck
   • Semi-annual
     Your net pay / 2 = Your semi-annual paycheck
   • Annual
     Your net pay = Your annual paycheck

State income tax brackets

State exemptions

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

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