Enter Your Salary
$
How Chicago, Illinois Income Tax & Salary Deductions Work
Chicago, the birthplace of American democracy, is the largest city in Pennsylvania and a major East Coast economic hub. With a lower cost of living than nearby New York and strong job growth, Philly offers solid financial value — though its local wage tax is one of the highest in the nation.
Did you know? Philadelphia was the first US city to have a zoo (1874), a hospital (1751), and a stock exchange (1790). Today its 'Eds and Meds' economy — universities and hospitals — is the backbone of the local workforce.
The median household income in Philadelphia is approximately $52,000, with dominant sectors in healthcare, higher education, pharmaceuticals, financial services, and a growing tech scene.
Understanding Your Chicago, Illinois Paycheck Deductions
When you receive your paycheck in Chicago, Illinois, several deductions are automatically taken out. These include federal income tax, state income tax, local taxes, Social Security, and Medicare. Our calculator breaks down each of these components so you can see exactly where your money goes.
Chicago, Illinois Federal & State Tax Rates 2026
The tax rates in Chicago, Illinois are determined by multiple factors including your income level, filing status, and location. Federal taxes apply to all US residents, while state and local taxes vary significantly by location. Use our calculator above to see your personalized tax breakdown.
Where Your Money Goes in Chicago, Illinois
75.7%
11.7%
6.2%
1.5%
5.0%
Net Pay
$56,790
Federal Tax
$8,761
Social Security
$4,650
Medicare
$1,088
State Tax
$3,713
| Tax Type | Rate | Amount |
|---|---|---|
| Federal Tax | 11.68% | $8,761 |
| Social Security | 6.20% | $4,650 |
| Medicare | 1.45% | $1,088 |
| State Tax | 4.95% | $3,713 |
| Total Tax | 24.28% | $18,211 |
Frequently Asked Questions
On a salary of $75,000 in Chicago, Illinois, you would pay approximately $18,211 in total taxes, which represents an effective tax rate of 24.28%. This includes all applicable federal, state, and local taxes, as well as social insurance contributions.
Tax Tips for Chicago
Expert strategies to maximize your take-home pay
Tax Strategy
Chicago Tax Guide: Navigating Illinois Flat Tax and City Fees
Illinois uses a flat 4.95% income tax rate, but Chicago adds layers of fees and taxes. Here is how to optimize your finances in the Windy City.
Jennifer Walsh·6 min read
Freelancer Taxes
Chicago Freelancer Tax Guide: Illinois Flat Tax and Self-Employment Strategies
Illinois flat 4.95% rate simplifies freelancer tax planning, but Chicago adds hidden costs. Master your quarterly payments and deductions in the Windy City.
Jennifer Walsh·7 min read
Retirement Planning
Chicago Retirement Tax Guide: Illinois Exempts All Retirement Income
Illinois exempts all retirement income from taxation. Discover why Chicago deserves a spot on your retirement shortlist.
Jennifer Walsh·7 min read