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IL-700-T Illinois Withholding Tax Guide

Effective January 1, 2026, Tax Rate 4.95%

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What is the purpose of this resource?

This guide provides information to help you figure out how much Illinois Income Tax to withhold. It includes withholding tables and step-by-step instructions for using them. You’ll find the tables in the Withholding Tables section of this guide.

This guide is for informational purposes only. It does not replace Illinois tax laws, rules, or court decisions.

Where do I get help?

For answers to questions about your responsibilities as an Illinois withholding agent, see Publication 130, Who is Required to Withhold Illinois Income Tax and Publication 131, Withholding Income Tax Payment and Filing Requirements.

For help with other questions, see the “Where to Get Help” section at the end of this guide.

How much do I withhold?

The Illinois Income Tax withholding rate is 4.95%. To figure out how much to withhold from wages or other payments, subtract any exemptions from the wages paid, then multiply the result by 4.95%. If you're withholding tax from other types of payments, like lottery or gambling winnings follow the specific rules for those situations, see Publication 130, Who is Required to Withhold Illinois Income Tax.

How do I figure out how much tax to withhold?

The Illinois income tax rate is 4.95%, and the exemption allowance is $2,925. You can use a withholding table to find out how much tax to withhold. Follow these steps:

  • Step 1: Identify your payroll period (for example, weekly, biweekly, or monthly). Use the section of the table that matches how often you pay your employee.
  • Step 2: Find your employee’s wage amount. Then, use the number of allowances claimed on Line 1 of Form IL-W-4 to determine the base amount of tax to withhold. You can do this by selecting or locating the wage range and the number of claimed allowances in the table.
  • Step 3: If your employee claimed any allowances on Line 2 of Form IL-W-4, subtract the allowance amount shown in the table for each Line 2 allowance from the amount found in Step 2.
  • Step 4: If your employee asked you to withhold an additional amount (Line 3 of Form IL-W-4), add that amount to the result from Step 2 (or Step 3, if used). This is the total amount of tax you should withhold.

Example

You pay Mary $300 each week. She claims three allowances on her Form IL-W-4:

  • Two (2) allowances on Line 1
  • One (1) allowance on Line 2
  • She does not ask for any extra withholding on Line 3.
  • You withhold $8.38 from her pay.

What other method may I use to figure the amount of tax that I should withhold?

You can use a formula to calculate the amount of Illinois Income Tax to withhold instead of using the tax tables.

Here’s how the formula works:
Tax withheld = 0.0495 × (Wages − (((Line 1 allowances × $2.925) + (Line 2 allowances × $1,000)) ÷ Number of pay periods in a year))
To use this method:
  • Start with the employee’s wages.
  • Subtract the total value of their allowances:
  • Multiply the number of allowances from Line 1 of Form IL-W-4 by $2.925.
  • Multiply the number of allowances from Line 2 by $1,000.
  • Add those two amounts together.
  • Divide that total by the number of pay periods in the year (for example, 52 for weekly pay).
  • Subtract the result from the employee’s wages.

Based on allowances claimed from Line 1 of Form IL-W-4, Illinois Withholding Allowance Certificate