How Much Is 100K Taxed in Illinois?
Earning $100,000 a year in Illinois comes with a range of tax obligations at both the federal and state levels. If you are a resident of the state, you will be subject to Illinois’ flat income tax, along with federal taxes, Social Security, and Medicare contributions. Understanding how much of your salary goes to taxes can help you budget effectively and plan for financial goals.
Federal Taxes on a $100,000 Salary
The bulk of the taxes on a $100,000 salary in Illinois come from federal income tax. The United States follows a progressive tax system, meaning your income is taxed at different rates as it moves up through tax brackets. In 2024, the federal income tax brackets for a single filer are:
- 10% on income up to $11,600
- 12% on income from $11,601 to $47,150
- 22% on income from $47,151 to $100,525
- 24% on income from $100,526 to $191,950
Since $100,000 falls within the 22% bracket, only the portion exceeding $47,150 is taxed at this rate, while lower portions are taxed at lower rates. After applying the standard deduction of $14,600 for single filers, the taxable income decreases to $85,400. This results in an estimated federal tax liability of around $17,500, though the exact amount depends on deductions, credits, and other personal financial factors.
Illinois State Income Tax
Illinois has a flat state income tax rate of 4.95%. This means that regardless of how much you earn, your entire taxable income is taxed at this rate. For someone making $100,000, the Illinois state income tax would amount to approximately $4,950. Unlike some states that have progressive tax brackets, Illinois’ flat tax system simplifies calculations but does not provide breaks for lower income levels.
Social Security and Medicare Taxes
In addition to federal and state income taxes, you must also pay FICA (Federal Insurance Contributions Act) taxes, which fund Social Security and Medicare. These are mandatory payroll taxes:
- Social Security Tax: 6.2% on income up to $168,600 (in 2024)
- Medicare Tax: 1.45% on all income, with an additional 0.9% on income exceeding $200,000 (not applicable in this case)
For a $100,000 salary, the Social Security tax amounts to $6,200, and the Medicare tax is $1,450. Together, these FICA taxes total $7,650.
Total Tax Liability on $100,000
Adding up all the taxes:
- Federal income tax: Approximately $17,500 (before any credits or deductions)
- Illinois state tax: $4,950
- Social Security tax: $6,200
- Medicare tax: $1,450
This results in a total tax burden of about $30,100, leaving a take-home pay of around $69,900.
Additional Considerations
Deductions and Credits
Many taxpayers qualify for deductions and credits that can reduce their overall tax burden. Common deductions include retirement contributions (401(k) or IRA), student loan interest, and health savings account (HSA) contributions. Tax credits, such as the Child Tax Credit or Earned Income Tax Credit, may also lower the final tax bill.
Local Taxes
Illinois does not have local income taxes, unlike some states that impose additional city or county taxes. However, property taxes in Illinois are among the highest in the nation, which can impact overall financial planning for homeowners.
Retirement and Investment Income
Illinois does not tax retirement income, including Social Security benefits, pensions, or withdrawals from IRAs and 401(k) plans. This makes the state attractive for retirees despite its relatively high property taxes.
Final Thoughts
If you earn $100,000 in Illinois, you can expect to pay around 30% of your income in taxes, primarily from federal and payroll taxes. The state’s 4.95% flat tax keeps state income tax calculations straightforward, but it does not provide progressive tax relief like some other states. While deductions and credits can reduce taxable income, it’s essential to factor in payroll taxes and federal obligations when budgeting for take-home pay.
Planning ahead by maximizing tax deductions, contributing to retirement accounts, and taking advantage of tax credits can help minimize tax liability and maximize earnings. If you’re looking for ways to optimize your tax situation, consulting with a tax professional can provide personalized strategies tailored to your financial goals.