The state of Illinois implements a flat income tax rate of 4.95% across the board, ensuring that all residents are subject to the same rate of taxation on their income. It is worth mentioning that no local income taxes are imposed by any cities within the state, in addition to the state income tax.
For every pay period, a portion of your earnings will be withheld by your employer for Social Security taxes (6.2%) and Medicare taxes (1.45%). These two taxes are collectively known as FICA taxes, and your employer will contribute an equal amount.
If you file your taxes as single and earn more than $200,000, an additional 0.9% Medicare tax will apply, which your employer will not match. Joint filers with incomes exceeding $250,000 and married individuals with incomes over $125,000 when filing separately are also subject to the Medicare surtax.
Moreover, your employer will deduct money from each paycheck to cover your federal income taxes. The specific percentage withheld depends on various factors, including your income, filing status, and any tax credits you have specified on your W-4 form.
If you earn $70,000.00 per year in Illinois, your net pay, which is the amount you take home, will be $53,012 after deducting taxes at a rate of 24.27%. These deductions consist of 11.67% ($8,168.10) for federal income tax, 4.95% ($3,465.00) for state income tax, 6.20% ($4,340.00) for social security tax, and 1.45% ($1,015.00) for Medicare.
Important Note: The Stubcreator provides paycheck calculator designed to provide essential guidance. This should not be relied upon to calculate exact taxes, payroll, or other financial data. You should seek a professional accountant regarding any particular requirement.
Below mentioned are the details of Illinois:
Illinois has a flat income tax rate, meaning everyone pays the same percentage of their income as state income tax. The Illinois Income Tax rate is applied to your taxable income after federal deductions. Make sure to input your gross income and any pre-tax deductions accurately for a more precise calculation.
Some municipalities in Illinois may impose additional local income taxes. It's crucial to be aware of any local tax obligations in your area, as they can affect the net amount you receive in your paycheck. Check with your local tax authorities or use a calculator that includes these local taxes.
Federal taxes, including Social Security and Medicare (FICA), are applicable to your income in Illinois. These deductions are standard across all states and are calculated based on your gross income. Understanding how FICA contributions affect your paycheck is important for accurate financial planning.