Updated for the 2026 tax year

Chicago Paycheck Calculator

Calculate take-home pay for a job in Chicago. There is no city income tax to add — a Chicago paycheck is taxed exactly like the rest of Illinois — but the local minimum wage, sales tax and paid leave rules are all different, and this page covers those too.

Chicago Paycheck Calculator

Your pay
Net pay
$0.00
take-home pay
Net pay Federal Illinois FICA Deductions
  • Gross pay $0 / yr$0.00
Taxes withheld this paycheck
  • Federal income tax$0.00
  • Illinois income tax flat 4.95%$0.00
  • Social Security $0.00
  • Medicare$0.00
  • Total taxes$0.00
Over a full year
  • Federal income tax$0
  • Illinois income tax$0
  • FICA (Social Security + Medicare)$0
  • All taxes$0
  • Take-home pay$0
Monthly $0 Weekly $0 Effective rate 0% Federal bracket 0%
The short answer: Chicago has no city income tax

Your paycheck in Chicago is taxed at exactly the same rates as one in Rockford, Springfield or Cairo — federal withholding, Illinois at a flat 4.95%, and FICA at 7.65%. The Illinois Constitution permits a home-rule unit to levy an income tax only with the General Assembly's authorization, and that authorization has never been granted to any Illinois municipality.

What actually is different in Chicago

Plenty is different about working in Chicago. None of it appears on your pay stub.

Chicago versus the Illinois baseline, 2026.
ChicagoIllinois elsewhere
Income tax on wages4.95% — no city tax4.95%
Minimum wage$17.05 from July 1, 2026 (4+ employees)$15.00 statewide
Tipped minimum wage$12.96$9.00
Sales tax on general merchandise10.50%6.25% to 11.25% depending on the town
Paid leaveChicago Paid Leave and Paid Sick Leave OrdinancePaid Leave for All Workers Act
Fair WorkweekApplies to covered industriesNo state equivalent
Vehicle purchase (dealer)8.75% — includes the 1.25% home rule use tax6.25% to 7.50%

The pattern is consistent: Chicago's home-rule powers reach consumption and employment standards, not wages. That is why the city can charge 10.50% on a sofa and mandate $17.05 an hour, but cannot take a cent of income tax from your salary.

Chicago take-home pay by salary

2026 tax year, single filer, no dependents, no pre-tax deductions. The Chicago city tax column is zero because no such tax exists.
SalaryFederalIllinoisFICAChicagoTake-homeMonthly
$40,000$2,620$1,980$3,060$0$32,340$2,695
$50,000$3,820$2,475$3,825$0$39,880$3,323
$60,000$5,020$2,970$4,590$0$47,420$3,952
$75,000$7,670$3,713$5,738$0$57,880$4,823
$90,000$10,970$4,455$6,885$0$67,690$5,641
$100,000$13,170$4,950$7,650$0$74,230$6,186
$125,000$18,734$6,188$9,563$0$90,516$7,543
$150,000$24,734$7,425$11,475$0$106,366$8,864

For a fuller breakdown by salary, including the joint-filing comparison, see salary after taxes in Illinois, or the individual walkthroughs for $80,000 and $100,000. If you are paid by the hour rather than on a salary, the hourly paycheck calculator handles overtime and multiple rates.

The Chicago minimum wage

Chicago sets its own floor and has done since 2015. From July 1, 2026 it is $17.05 an hour for employers with four or more workers, more than two dollars above the Illinois state minimum of $15.00.

The tipped rate is where the recent news sits. Under the One Fair Wage ordinance, Chicago had been phasing out the tip credit — reducing it in steps until tipped workers would earn the full minimum wage in direct pay. That phase-out has been paused. The tip credit stays at 24% of the minimum wage, so the tipped minimum is $12.96, and the next substantial increase has been deferred. Suburban Cook County runs a separate ordinance at $15.40, with municipalities permitted to opt out.

CategoryRate from July 1, 2026
Chicago standard minimum wage (4+ employees)$17.05
Chicago tipped minimum wage$12.96
Suburban Cook County$15.40
Suburban Cook County, tipped$9.25
Illinois statewide$15.00

At $17.05 an hour a full-time schedule is $35,464 a year gross, and about $28,920 after federal tax, Illinois tax and FICA for a single filer.

Chicago workers are covered by the city's own ordinance rather than the state Paid Leave for All Workers Act, and the city's version is more generous. Employees accrue both paid leave usable for any reason and paid sick leave, at a combined rate well above the state's single bucket of 40 hours a year. Covered industries — building services, healthcare, hotels, manufacturing, restaurants, retail, warehouse services and transport — are additionally protected by the Fair Workweek Ordinance, which requires advance notice of schedules and predictability pay when a shift changes late.

None of this changes your tax. It changes how many paid hours you accrue, which changes gross pay, which the calculator above then taxes normally.

Where Chicago money actually goes

If income tax is identical statewide, the honest question is where the Chicago premium and the Chicago discount actually sit.

Sales tax is genuinely higher. At 10.50% against 8.00% in Naperville, a household spending $30,000 a year on taxable goods pays about $750 more in Chicago. That is real money, though it is a fraction of what the housing difference does.

Property tax is more complicated than the stereotype. Effective rates in many south and west Cook County suburbs run higher than in the city, and Chicago's residential rate is not the outlier people expect. What differs is the price of the property the rate applies to.

Wages are higher. The Chicago metropolitan area's mean hourly wage of $35.28 sits about 5% above the national mean, and Cook County's average weekly wage of $1,930 is more than 20% above the national figure. Management occupations average $72.18 an hour in the metro and legal occupations $71.28.

Transit is a real substitute for a car. The CTA and Metra make a car optional in much of the city in a way it is not downstate — worth several thousand dollars a year in insurance, fuel, parking and the vehicle taxes covered on our vehicle tax page.

Working in Chicago, living elsewhere

Chicago's labor market pulls from three states, and the tax treatment differs by which one you live in.

You live inWho taxes your Chicago wagesWhat you file
IllinoisIllinois onlyForm IL-1040
IndianaIllinois, then Indiana with a creditIL-1040 with Schedule NR, plus Indiana IT-40
WisconsinWisconsin only — reciprocalForm IL-W-5-NR with your employer, then a Wisconsin return
Michigan or IowaHome state only — reciprocalForm IL-W-5-NR, then a home-state return

The Indiana case catches people out because Illinois and Indiana are not reciprocal despite sharing a border and a commuter belt. Indiana residents working in Chicago file in both states and rely on the credit mechanism to avoid double taxation on the state portion, while the Indiana county income tax generally still applies.

Related Illinois calculators

People also ask about Chicago paychecks

No. Chicago levies no income tax on wages, and neither does Cook County. The Illinois Constitution allows a home-rule unit such as Chicago to impose an income tax only if the General Assembly authorizes it, and the legislature never has. A Chicago paycheck and a Peoria paycheck at the same salary, with the same forms on file, produce identical withholding. What is higher in Chicago is sales tax and the local minimum wage — neither of which appears as a deduction on your pay stub.

Sources

Estimates for planning only. Chicago and Cook County labor ordinances change frequently and coverage depends on employer size and industry; confirm current requirements with the City of Chicago Department of Business Affairs and Consumer Protection. Not tax or legal advice.