Taxes in Chicago, Illinois
Complete tax guide for Chicago, IL. State income tax up to 4.95%, 2.1% property tax, 10.25% sales tax. Calculate your total tax burden.
Answer first
Taxes in Chicago, IL: income, FICA, property, and sales tax
For wage-income planning, this page estimates federal income tax, Illinois state income tax, and FICA. It also shows property-tax and sales-tax estimates because local household tax burden depends on address-level property assessments, sales-tax districts, exemptions, and item categories.
State Income Tax
4.95%
Illinois
Property Tax
2.1%
Effective rate
Sales Tax
10.25%
Combined rate
Tax Burden
Very High
Chicago, IL Tax Overview
Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax
Population
2,746,388
Median Income
$65,781
Cost of Living
107.8 (100 = avg)
State Income Tax
4.95%
Median Home Price
$310,000
Chicago Tax Calculator
Pre-filled with Chicago median: $65,781
Total Tax Burden in Chicago
$14,002
Take-Home: $51,779 · Effective Rate: 21.29%
Federal Tax
$5,714
8.69% eff.
IL State
$3,256
4.95% eff.
FICA
$5,032
7.65% eff.
Take-Home
$51,779
78.71% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $65,781.00 | $5,481.75 |
| Federal Income Tax | -$5,713.72 | -$476.14 |
| Illinois State Tax | -$3,256.16 | -$271.35 |
| Social Security (6.2%) | -$4,078.42 | -$339.87 |
| Medicare (1.45%) | -$953.82 | -$79.49 |
| Take-Home Pay | $51,778.87 | $4,314.91 |
Property Tax in Chicago
Median Home
$310,000
Annual Tax
$6,510
Monthly Tax
$543
Effective Rate
2.1%
Sales Tax in Chicago
Combined Rate
10.25%
State Portion
~7.8%
Local Portion
~2.5%
The combined sales tax rate in Chicago is 10.25%, which is above the national average of 7.12%. On a $100 purchase, you would pay $10.25 in sales tax.
Sales and use tax can vary by exact address, district, item category, exemptions, and effective date. Treat this city rate as a planning estimate and verify large purchases with the official state sales-tax lookup or local tax authority.
Tax Burden Comparison
| Tax Type | Chicago | Illinois Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.95% | 4.95% | 4.6% |
| Property Tax | 2.1% | ~2.1% | 1.1% |
| Sales Tax | 10.25% | ~10.25% | 7.12% |
| Overall Burden | Very High | — | Moderate |
About Taxes in Chicago
Chicago has a population of approximately 2,746,388 residents with a median household income of $65,781. The cost of living index is 107.8 (7.8% higher than the national average of 100).
Local context: Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax
Tax burden classification: Very High. Effective combined tax rate of 35.4% includes federal, state, FICA, property, and sales taxes for a typical Chicago household.
Official Tax Resources for Illinois
For authoritative Illinois tax forms, filing deadlines, and the latest legislative updates, consult these official government resources:
- Illinois Department of Revenue — official state revenue agency
- Illinois Individual Income Tax Forms — current tax year forms and instructions
- Illinois Property Tax Information — assessment, exemptions, and appeals
- Illinois Sales Tax Authority — current sales tax rates and rules
- IRS Federal Tax Forms and Instructions — federal income tax filing
Tax Saving Tips for Chicago Residents
- Illinois's income tax rate of 4.95% is competitive. You may still benefit from maximizing 401(k) contributions ($24,500 limit) to reduce your taxable income at both state and federal levels.
- Property tax in Chicago (2.1%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- The combined sales tax rate of 10.25% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,400 individual, $8,750 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Find Your Local Tax Authority in Chicago
The 2.1% property tax rate shown above is a city-profile effective estimate. Your actual Chicago property tax bill is set by your county assessor and may include additional levies from your school district, municipal utility district (MUD), or special assessment district. Use these official lookup tools to confirm exact rates for your specific address:
Look up the county your Chicago address belongs to and find your assessor's office:
- • NACo County Explorer — search by address
- • USA.gov — Illinois local govt directory
School districts add their own millage rate to property tax:
- • NCES District Locator — federal database
- • NCES School Locator (EDGE)
Municipal Utility Districts and special assessment districts are common in fast-growing Illinois suburbs:
- • Census — Census of Governments
- • Check your tax bill for line items beyond county + school district
Disagree with your assessment? You can appeal:
- • Property Tax Appeal Guide
- • Most counties allow 30-60 days post-assessment to file appeal
Why this matters: Two homes valued the same in Chicago can pay different property tax depending on which school district + MUD they fall within. Always verify with your specific address — the address-level rate may be 10-30% higher than the city average shown here.
Other Cities in Illinois
Aurora
HighJoliet
HighNaperville
Very HighRockford
HighElgin
HighSpringfield
ModeratePeoria
ModerateChampaign
HighSources & Methodology
Tax rate data on this page is compiled from official government sources and updated for the 2026 tax year. Calculations follow the IRS-published 2026 federal tax brackets, FICA rates (6.2% Social Security up to $184,500 wage base, 1.45% Medicare), and Illinois state tax provisions. Property tax estimates use Chicago's median home value of $310,000and the local effective property tax rate of 2.1%.
- • Federal tax brackets and standard deductions: IRS.gov
- • State income tax rates and brackets: Illinois Department of Revenue
- • Median household income, home value, and demographics: U.S. Census Bureau ACS
- • Cost of living comparisons: U.S. Bureau of Labor Statistics CES
- • National average benchmarks: Tax Foundation state-level tax burden studies
Disclaimer: Estimates are for informational purposes only. Actual tax liability depends on filing status, deductions, credits, and individual circumstances. Consult a licensed tax professional or your state revenue agency for binding tax guidance.
Reviewed by LevyIO Tax Research Team · Published 2026-01-15 · Last updated 2026-05-27
Calculate Your Full Illinois Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Reviewed data sources
Reviewed May 27, 2026. Calculations use current public tax guidance and published source data.
1. Enter the tax scenario
Use the filing status, income type, state, payroll, deduction, credit, or transaction details that match the real case.
2. Review assumptions
Check the visible formula context, source notes, related calculators, and federal or state limits before relying on the estimate.
3. Verify before filing
Confirm final tax positions with IRS guidance, state revenue agencies, payroll records, brokerage forms, or a qualified tax professional.
Planning estimate, not tax advice
LevyIO calculators are educational planning tools. Actual federal, state, payroll, property, sales, and local tax results can change with filing status, credits, deductions, residency, employer withholding, address-level rates, and current forms. Verify final filing positions with IRS or state guidance, payroll records, tax software, or a qualified tax professional.
Frequently Asked Questions
What are the tax rates in Chicago, IL?
Chicago, Illinois has a state income tax rate up to 4.95%. The property tax rate is 2.1% and the combined sales tax rate is 10.25%. Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax
How much is property tax in Chicago?
The effective property tax rate in Chicago is 2.1%. On the median home price of $310,000, this equals approximately $6,510 per year or $543 per month. This is above the national average of 1.1%.
What is the sales tax rate in Chicago?
The combined sales tax rate in Chicago is 10.25%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Chicago's tax burden compare to other cities?
Chicago has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 35.4%. The combination of 4.95% state income tax, 2.1% property tax, and 10.25% sales tax determines the total burden. Cost of living index is 107.8 (100 = national average).
Are there any local taxes in Chicago?
Chicago does not impose a separate local or city income tax. Residents pay the state income tax of 4.95%, federal income tax, and FICA (Social Security and Medicare). Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax