Illinois payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Illinois, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Illinois Department of Revenue (IDOR) (opens in a new tab) | IDOR, Publication 130, Who is Required to Withhold Illinois Income Tax (February 2026) (PDF) (opens in a new tab) | |
| Withholding rates | 4.95% flat | IDOR, 2026 Booklet IL-700-T, Illinois Withholding Tax Tables (PDF) (opens in a new tab) | |
| Supplemental wages | Same as regular wages | IDOR, Publication 130 (February 2026) (PDF) (opens in a new tab) | |
| Reciprocity | Iowa: IL-W-5-NRKentucky: IL-W-5-NRMichigan: IL-W-5-NRWisconsin: IL-W-5-NR | IDOR, Form IL-W-5-NR, Employee's Statement of Nonresidence in Illinois (PDF); Publication 130 (February 2026) (opens in a new tab) | |
| Employee's withholding form | Form IL-W-4 | IDOR, Form IL-W-4, Employee's and other Payee's Illinois Withholding Allowance Certificate (PDF) (opens in a new tab) | |
| Local income taxes | No | Illinois Constitution of 1970, Article VII, Section 6(e) (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $15.00 | IDOL, Minimum Wage and Overtime FAQ (opens in a new tab) | |
| Tipped employees, cash wage | $9.00 | IDOL, Minimum Wage Law (opens in a new tab) | |
| Rises with inflation | No | IDOL, Illinois Minimum Wage Rates History (PDF) (opens in a new tab) | |
| Local rates | Chicago: $17.05 an hour from July 1, 2026 for employers with 4 or more employees ($12.96 tipped), indexed each July 1 to CPI capped at 2.5%. Cook County sets its own rate (not checked here). | City of Chicago, Office of Labor Standards, Minimum Wage Information (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | IDOL, Paid Leave for All Workers Act FAQ (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | IWCC, Insurance (opens in a new tab) | |
| State fund | None; private insurers | IWCC, Insurance (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Illinois
Employer taxes and contributions on one employee's pay in Illinois, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $267.70
- First check of the year
- Cost per check
- $2,575.39
- Pay included, first check
- Cost per year
- $65,109.38
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Illinois unemployment | 3.35% on the first $14,2503.35%, or 3.45% for NAICS sector 56 (Administrative Support & Waste Management) | $77.31None after check 7 | $477.38 | IDES, EA-50 2026 State Experience Factor and Employers' UI Contribution Rates (PDF) (opens in a new tab) |
| Employer taxes and contributions | $267.70 | $5,109.38 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,575.39 | $65,109.38 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
WORKLIO HCM
Payroll taxes calculated, deposited and filed in every state
Worklio HCM calculates, deposits and files payroll taxes in every state and locality, city, county and school district taxes included, and rates and rules update without you noticing. We help open state accounts when you hire somewhere new. Payroll and HCM for companies with 50 to 50,000+ employees.
Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- IDES, Employer Tax Information (opens in a new tab)
- IDES, EA-50 2026 State Experience Factor and Employers' UI Contribution Rates (PDF) (opens in a new tab)
- Illinois General Assembly, 820 ILCS 405/235, Unemployment Insurance Act (opens in a new tab)
- IDES, REG-UI-1 Report to Determine Liability Under the Unemployment Insurance Act (PDF) (opens in a new tab)
- US DOL, FUTA Credit Reductions (opens in a new tab)
- IDOR, Publication 130, Who is Required to Withhold Illinois Income Tax (February 2026) (PDF) (opens in a new tab)
- IDOR, 2026 Booklet IL-700-T, Illinois Withholding Tax Tables (PDF) (opens in a new tab)
- IDOR, Form IL-W-5-NR, Employee's Statement of Nonresidence in Illinois (PDF); Publication 130 (February 2026) (opens in a new tab)
- IDOR, Form IL-W-4, Employee's and other Payee's Illinois Withholding Allowance Certificate (PDF) (opens in a new tab)
- Illinois Constitution of 1970, Article VII, Section 6(e) (opens in a new tab)
- IDOL, Minimum Wage and Overtime FAQ (opens in a new tab)
- IDOL, Minimum Wage Law (opens in a new tab)
- IDOL, Illinois Minimum Wage Rates History (PDF) (opens in a new tab)
- City of Chicago, Office of Labor Standards, Minimum Wage Information (opens in a new tab)
- IDOL, Paid Leave for All Workers Act FAQ (opens in a new tab)
- IWCC, Insurance (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.