Estimate your combined federal and Illinois state income tax liability in under 60 seconds. Updated with the latest 2026 brackets and FICA rates.
Illinois has a flat income tax rate of 4.95% for the 2026 tax year. Illinois has a constitutionally mandated flat income tax rate, currently set at 4.95%. A 2020 ballot measure to allow graduated rates was rejected by voters. The state also does not tax retirement income.
Understanding how your state tax brackets work is essential for effective tax planning. Since Illinois uses a flat rate, calculating your state tax is straightforward — simply multiply your taxable income by 4.95%.
| Tax Rate | Income Range | Tax Owed |
|---|---|---|
| 4.95% | Above $0 | $0 + 4.95% of amount over $0 |
Source: Illinois Department of Revenue. Brackets shown for single filers, tax year 2025 (filed in 2026).
Sales Tax: Illinois has a state sales tax rate of 6.25%. Local jurisdictions may add additional sales tax.
Federal income tax applies to all U.S. taxpayers regardless of state. Below are the 2026 federal brackets for single filers.
| Rate | Single Filer Income Range |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,925 – $48,475 |
| 22% | $48,475 – $103,350 |
| 24% | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 |
| 37% | Above $626,350 |
The standard deduction for single filers in 2026 is $15,000. Married filing jointly: $30,000.
Source: IRS Revenue Procedure for tax year 2025.
FICA taxes fund Social Security and Medicare and are calculated on gross wages before deductions.
| Tax | Rate | Wage Base |
|---|---|---|
| Social Security | 6.2% | First $168,600 |
| Medicare | 1.45% | All wages |
| Additional Medicare | 0.9% | Wages above $200,000 |
The minimum wage in Illinois for 2026 is $15.00/hour. At full-time hours (40 hours/week, 52 weeks), this equals approximately $31,200/year before taxes.
The median household income in Illinois is approximately $78,000, based on U.S. Census Bureau American Community Survey estimates. This is above the national median, reflecting Illinois's relatively strong economy.
Starting a business in Illinois requires filing Articles of Organization with the state. Here are the key costs:
| Item | Cost | Frequency |
|---|---|---|
| Articles of Organization Filing | $150 | One-time |
| Annual report | $75 | Yearly |
| Registered Agent | $0 – $150/yr | Yearly |
Source: Illinois Secretary of State.
Northwest Registered Agent handles all the paperwork for $39 + state fee. Includes free registered agent service for the first year, privacy protection, and compliance alerts.
Start My Illinois LLCIllinois has a flat income tax rate of 4.95% for the 2026 tax year (single filers).
Illinois has a state sales tax rate of 6.25%. Local jurisdictions may add additional sales tax.
The minimum wage in Illinois for 2026 is $15.00 per hour.
Filing an LLC in Illinois costs $150 for the Articles of Organization. Annual report: $75.
The median household income in Illinois is approximately $78,000, based on U.S. Census Bureau estimates.