1. What is the Illinois Paycheck Tax Calculator?

The Illinois Paycheck Tax Calculator helps employees and employers estimate net pay after deducting federal, state, local, and FICA taxes from gross earnings. It provides a quick way to understand take-home pay in Illinois.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross \) — Total earnings before any deductions
• \( Federal \) — Federal income tax withheld
• \( State \) — Illinois state income tax at 4.95%
• \( Local \) — Local municipal taxes
• \( FICA \) — Social Security and Medicare taxes at 7.65%

Explanation: The calculator automatically calculates state tax and FICA based on gross pay, while federal and local taxes are user-input based on withholding.

3. Understanding Tax Components

Details: Illinois has a flat state income tax rate of 4.95%. FICA consists of 6.2% for Social Security and 1.45% for Medicare. Federal tax varies based on income, filing status, and allowances.

4. Using the Calculator

Tips: Enter gross pay in dollars, federal tax withheld, and local tax if applicable. The calculator will automatically compute state tax and FICA deductions to determine your net pay.

5. Frequently Asked Questions (FAQ)

Q1: What is Illinois' state income tax rate?
A: Illinois has a flat state income tax rate of 4.95% for all income levels.

Q2: How is FICA calculated?
A: FICA is 7.65% of gross pay (6.2% for Social Security up to the annual limit and 1.45% for Medicare with no income limit).

Q3: Are there local taxes in Illinois?
A: Some municipalities in Illinois impose local income taxes. Check with your local government for specific rates.

Q4: Why do I need to input federal tax separately?
A: Federal tax withholding varies based on W-4 information, pay frequency, and income level, so it's best entered directly.

Q5: Is this calculation exact?
A: This provides an estimate. Actual paycheck amounts may vary based on additional deductions, benefits, or tax credits.