Illinois Employer Payroll Tax Calculator

2026 Illinois Payroll Tax Calculator

Illinois Payroll Tax Calculator

Estimate Illinois take-home pay and employer payroll cost with federal withholding, FICA, Illinois income tax withholding, Illinois unemployment insurance, the Fund Building contribution, FUTA, and optional employer workers compensation or burden costs.

Payroll Inputs

Rates refreshed: May 27, 2026

Pay Setup

Gross pay and frequency

Pay type

Pay frequency

YTD subject wages before this check Used for Social Security, Additional Medicare, FUTA, and Illinois UI wage-base caps.

Annual salary

Hourly rate

Regular hours this check

Overtime hours this check

Double-time hours this check

Bonus, commission, or extra pay

Deductions

Amounts withheld from this paycheck

Pre-tax benefits Health, FSA, HSA, or cafeteria deductions assumed to reduce income tax and FICA wages.

Pre-tax retirement Assumed to reduce federal income-tax wages but not FICA wages.

Post-tax deductions

Federal W-4

IRS 2026 automated method

Federal filing status

W-4 Step 2 checkbox Federal income tax exempt

Step 3 annual credits

Step 4(a) other income

Step 4(b) extra deductions

Step 4(c) extra withholding

Use supplemental flat rate for bonus

Illinois Withholding

IL-W-4 allowances and allocation

Illinois wage allocation Use 100% for Illinois residents or employees whose wages are fully paid in Illinois.

Illinois withholding profile Reciprocal states: Iowa, Kentucky, Michigan, and Wisconsin.

IL-W-4 Line 1 allowances 2026 allowance value is $2,925 per allowance.

IL-W-4 Line 2 allowances 2026 Line 2 allowance value is $1,000 per allowance.

Additional Illinois withholding

Illinois income tax exempt

Employer Taxes

UI, FUTA, workers comp, and load

Illinois UI employer rate Standard 2026 new-employer rate is 3.35%, including the 0.55% Fund Building rate.

Net FUTA rate

Workers comp estimate Optional employer-paid percentage for Illinois workers compensation insurance estimates.

Quarterly wages before this check Used only if applying the small-employer 5.4% UI cap.

Other employer load Optional percentage for benefits, local payroll cost, or other employer burden.

Apply 5.4% small-employer UI cap when eligible

Employee Withholding

Federal income tax$0.00

Social Security$0.00

Medicare$0.00

Additional Medicare$0.00

Illinois state income tax$0.00

Employee state payroll premiums$0.00

Taxable Wage Bases

FIT taxable wages$0.00

FICA taxable wages$0.00

Illinois taxable wages$0.00

Illinois allocated gross wages$0.00

Social Security taxed this check$0.00

Illinois UI taxed this check$0.00

Employer Cost

Employer Social Security$0.00

Employer Medicare$0.00

Illinois unemployment insurance$0.00

Illinois UI base contribution$0.00

Illinois Fund Building contribution$0.00

FUTA$0.00

Workers comp estimate$0.00

Other employer load$0.00

2026 Illinois Payroll Rule Snapshot

For Illinois payroll estimates

State income tax 4.95% flat withholding Uses the 2026 IL-700-T formula with IL-W-4 Line 1 and Line 2 allowance values.

IL-W-4 allowances $2,925 and $1,000 Line 1 allowances use $2,925 each; Line 2 allowances use $1,000 each.

Reciprocal states IA, KY, MI, WI Supports Illinois taxable wages, reciprocal-state resident exemption, and no-withholding scenarios.

Employer Illinois UI UI to $14,250 Includes editable UI rate, the 0.55% Fund Building component, FUTA, and optional employer load.

Tax or contribution	Who pays	2026 rule used	Calculator treatment
Federal income tax	Employee withholding	IRS Publication 15-T automated percentage method.	Annualizes taxable wages, applies W-4 status, Step 2, Step 3, Step 4(a), Step 4(b), and Step 4(c). Optional bonus mode uses the federal supplemental flat rate.
Illinois state income tax	Employee withholding	4.95% withholding rate; $2,925 per IL-W-4 Line 1 allowance; $1,000 per Line 2 allowance.	Applies the Illinois formula to allocated taxable wages, supports additional withholding, reciprocal-state resident exemption, and optional supplemental treatment for bonus wages.
Reciprocity and allocation	Employee withholding setup	Illinois Publication 130 covers wages paid in Illinois, nonresident allocation, and reciprocal-state residents from Iowa, Kentucky, Michigan, and Wisconsin.	Lets the user allocate wages to Illinois or turn off Illinois withholding for reciprocal-state or no-withholding profiles.
Illinois unemployment insurance	Employer	Standard new-employer rate 3.35%; minimum 0.75%; maximum 7.05%; 0.55% Fund Building component; wage base $14,250.	Uses YTD wages before this check for the wage-base cap, splits the editable UI rate into base and Fund Building components, and supports the 5.4% small-employer cap when selected.
Workers comp and other employer load	Employer	Illinois workers compensation premiums vary by carrier, classification, payroll, and experience.	Uses optional employer-entered percentages so the payroll tax result can include estimated workers comp, benefits, or other employer burden.

This calculator is a planning estimate, not payroll tax, legal, or accounting advice. Real payroll can differ because of Illinois residency, reciprocal-state forms, nonresident workday allocation, wage-type exemptions, employer-specific UI rate notices, small-employer UI rules, pre-tax deduction treatment, taxable fringe benefits, workers compensation classifications, and supplemental wage methods.

Primary references: IRS Publication 15-T, IRS Publication 15, 2026 Illinois IL-700-T withholding tables, Illinois Publication 130, IDES unemployment taxes and reporting, IDES 2026 historical UI rate chart, IDES 2026 EA-50 rate report, and Illinois Workers' Compensation Commission insurance guidance.

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Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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