Illinois paychecks in 2026: what changed
Illinois' rate is still 4.95% in 2026. The one state change that reaches your paycheck is a bigger allowance.
The changes
- New federal withholding tables. The IRS updated Publication 15-T for 2026, including changes from the 2025 tax law. The standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- Social Security wage base: $184,500 (up from $176,100). If you earn more, Social Security stops later in the year.
- Tips and overtime deductions for 2025–2028 — see below.
- Illinois basic allowance: $2,925 for 2026 (up from $2,850 in 2025), so slightly less Illinois tax is withheld for the same pay.
- Illinois minimum wage: still $15.00, in effect since January 1, 2025.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Work out your 2026 Illinois paycheck →
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Illinois Department of Revenue — Booklet IL-700-T, Illinois Withholding Tax Tables (2026) — 4.95%; $2,925 per Line 1 allowance, $1,000 per Line 2 allowance; worked example
- Illinois Department of Revenue — Bulletin FY 2026-15 — exemption $2,850 for 2025, $2,925 for 2026
- Illinois Department of Revenue — Withholding Illinois income tax for my employees — no IL-W-4 means no allowances; reciprocity with Iowa, Kentucky, Michigan and Wisconsin
- 86 Ill. Adm. Code 100.7000 — withholding follows federal income tax withholding
- Illinois Department of Employment Security — What every worker should know — financed by employer payroll taxes, not deductions from wages
- Illinois Department of Labor — Minimum Wage Law — $15.00; $9.00 tipped; overtime after 40 hours
- Illinois Department of Labor — Wage payment FAQ — at least semi-monthly; final pay on the next regular payday
- Illinois Department of Labor — Paid Leave for All Workers Act FAQ