Skip to content
PaycheckDesk

Illinois · tax year 2026

Does Illinois tax tips and overtime?

Neither deduction reduces your state tax.

Illinois charges a flat 4.95% and starts from your federal AGI, minus a $2,925 personal exemption per filer. It follows neither the tips nor the overtime deduction, so your Illinois tax is the same whether or not you claim them federally.

What it means on a real paycheck

Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.

In Illinois it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.

How Illinois works out the tax

Illinois charges a flat 4.95%, after an exemption of $2,925 a person. It begins from your federal adjusted gross income and applies its own reliefs from there.

Your own numbers

Your gross pay before any taxes or deductions.

Married filing separately cannot claim these deductions at all, so it is not offered here.

Traditional, pre-tax. Lowers income tax but not Social Security or Medicare.

Pre-tax cafeteria-plan premiums. These lower income tax and FICA.

Take-home pay per paycheck (26 per year)

$1,887

$49,073 a year after taxes and deductions.

Illinois charges a flat 4.95% and starts from your federal AGI, minus a $2,925 personal exemption per filer. It follows neither the tips nor the overtime deduction, so your Illinois tax is the same whether or not you claim them federally. See what that costs you →

Where the money goes each year

Gross salary$62,000
Federal income taxTop rate applied: 12%−$5,260
Social Security−$3,844
Medicare−$899
State income tax (IL)Flat 4.95% on $59,075 of state taxable income−$2,924
Take-home pay$49,073

Per paycheck

Gross$2,385
Taxes withheld−$497
Net$1,887

Estimate for tax year 2026 assuming the standard deduction, no dependents or credits, and even pay across the year. Your employer withholds using your Form W-4, so an individual paycheck can differ. Effective total tax rate: 20.85%. Not tax advice.

Where these figures come from

Illinois’s rates and reliefs here were taken from Illinois’s own publication and last checked on 2026-07-31. A state appears in this calculator only once its figures have been read off that state’s own paperwork and covered by tests — never estimated, and never copied from another site.

Figures on this page are for tax year 2026 and were last checked against the primary sources on 2026-07-31. See our sources. This is an estimate, not tax advice.

← All states