Illinois Payroll

Updated February 2025
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Illinois Payroll Topics

The Prairie State has a flat income tax system where the income taxes are relatively low compared to the rest of the country.
Use the free Illinois paycheck calculators to calculate the taxes on your income. For employer tax calculations, use PaycheckCity Payroll.

Illinois Tax Information

Employee Withholding Requirements

  • Withholding Method

    : 4.95% for 2025

  • Exemption

    : $2,850 for 2025
  • The standard deduction is not used

  • Supplemental Wage / Bonus Rate

    : taxed same as regular income
  • Register as an employer on the Illinois Development of Revenue website

  • Employee's Withholding Tax Exemption Certificate

    : REG-1

Illinois State Unemployment Insurance (SUI)

  • Illinois Wage Base

    : $13,916 for 2025

  • Illinois SUI rates range from

    : 0.850% to 8.650% for 2024

  • Illinois new employer rate

    : 3.95% for 2024
  • Get your unemployment insurance rate: Idaho UI agency website

Illinois State Disability Insurance (SDI)

  • None

Illinois Family Leave Insurance (FLI)

  • None

Illinois Local Taxes

  • None

Illinois Minimum Wage

  • Illinois Minimum Wage

    : $15.00 per hour, since 2025. Rates vary by city, age and work hours.

Illinois State Labor Laws

  • Illinois Termination Pay

    :
    • Employee is fired — pay next regular payday
    • Employee quits — pay next regular payday

Illinois New Hire Reporting

Remit Withholding for Child Support to

Illinois Reciprocal States

  • Iowa
  • Kentucky
  • Michigan
  • Wisconsin
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These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.
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