1. What is Illinois Salary Tax?

The Illinois state income tax is a flat tax of 4.95% on all income, including salary. This calculator helps you estimate how much state income tax you'll owe based on your salary.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Salary \) — Your annual salary in USD
• \( 0.0495 \) — Illinois state income tax rate (4.95%)

Explanation: The calculation multiplies your salary by the flat tax rate of 4.95% to determine your estimated state income tax.

3. Importance of Tax Calculation

Details: Understanding your state tax liability helps with financial planning, budgeting, and ensuring you have adequate withholdings.

4. Using the Calculator

Tips: Enter your annual salary in USD. The value must be greater than 0. The calculator will output your estimated state income tax.

5. Frequently Asked Questions (FAQ)

Q1: Is Illinois tax really flat?
A: Yes, Illinois has a flat income tax rate of 4.95% for all income levels.

Q2: Are there any deductions or exemptions?
A: This calculator provides a basic estimate. Actual tax may vary based on deductions, exemptions, or credits you qualify for.

Q3: Does this include local taxes?
A: No, this only calculates state income tax. Some Illinois municipalities have additional local taxes.

Q4: Is this only for salary income?
A: While designed for salary, the same rate applies to all taxable income in Illinois.

Q5: How often should I calculate this?
A: You should recalculate whenever your salary changes or tax laws are updated.