In 2020, Illinois voters rejected a measure that would have changed the state to a progressive income tax system. Because of this, the state retains its flat 4.95% rate, simplifying calculations compared to states like New York or California.

What About Local Taxes?

A major advantage of working in Illinois is the absence of local municipal income taxes. While cities and counties levy their own property and sales taxes, the income tax you see on your paycheck belongs entirely to the state and federal governments.