Illinois payroll taxes
Every tax withheld from a Illinois paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: news.bloombergtax.com, taxfoundation.org, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Illinois SUTA | — | 3.35% (new) | $14,250 |
| Illinois income tax | 4.95% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
The Illinois SUTA wage base changes to $14,592 in 2027.
State unemployment insurance
Illinois charges new employers 3.35% on the first $14,250 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.75% to 7.05%. The new employer rate is 3.45% for NAICS 56 (administrative support). The DOL table shows 0.2%-6.5% excluding fund building.
Fund-building surtax 0.55%, included in all rates
Register and file with the Illinois unemployment tax agency.
Income tax withholding
Illinois has a flat income tax of 4.95% on taxable income.
Frequently asked questions
- What payroll taxes do employers pay in Illinois?
- Social Security, Medicare, federal unemployment (FUTA) and Illinois unemployment insurance (SUTA).
- What is the Illinois SUTA wage base for 2026?
- $14,250 per employee. It changes to $14,592 in 2027.
- Does Illinois require state income tax withholding?
- Yes. Employers withhold Illinois income tax based on the employee's state withholding certificate or federal W-4.