Chicago is the third largest city in the United States and one of the very few that does not tax the income of the people who live in it. New York takes close to 4 percent from residents. Philadelphia takes more. Chicago takes nothing. That does not make it a low tax city, because the money is collected somewhere else entirely.
The breakdown below assumes a single filer taking the federal standard deduction, with no pre-tax contributions.
Your take-home pay on a $70,000 Illinois salary
| Gross Income | $70,000 |
|---|---|
| Federal Income Tax | −$6,570 |
| State Income Tax | −$3,320 |
| Social Security | −$4,340 |
| Medicare | −$1,015 |
| Total Taxes | −$15,245 |
| Net Pay | $54,755 |
| Effective Rate | 21.78% |
| Marginal Federal Rate | 22.00% |
Where every dollar goes
Your $70,000 gross income, split up.
- Federal Tax — $6,570 (9.4%)
- State Tax — $3,320 (4.7%)
- Social Security — $4,340 (6.2%)
- Medicare — $1,015 (1.5%)
- Take-Home Pay — $54,755 (78.2%)
Your income across the federal brackets
Only the last slice is taxed at your top federal rate of 22.00% — every slice before it is taxed at a lower rate.
- Tax-free (deduction & pre-tax) — $16,100
- 10% on $12,400 = $1,240
- 12% on $38,000 = $4,560
- 22% on $3,500 = $770
How we got this number — step by step
Step 1 — Federal income tax $6,570
- Start with your gross income: $70,000.
- Subtract the standard deduction — the chunk of income the government lets everyone earn tax-free: −$16,100.
- What’s left is your taxable income: $53,900 — the number the tax brackets actually apply to.
The U.S. uses a progressive system: your income is sliced up, and each slice is taxed at its own rate. You do not pay your top rate on every dollar. Your top slice is taxed at 22.00% — that’s your marginal rate, the rate on your next dollar earned.
| Rate | Income slice | Amount taxed | Tax |
|---|---|---|---|
| 10.00% | $0–$12,400 | $12,400 | $1,240 |
| 12.00% | $12,400–$50,400 | $38,000 | $4,560 |
| 22.00% | $50,400–$105,700 | $3,500 | $770 |
| Total | $6,570 | ||
Step 2 — Social Security & Medicare (FICA) $5,355
These are payroll taxes, separate from income tax. They come out of every paycheck no matter which state you live in.
- Social Security: 6.20% of your wages = $4,340.
- Medicare: 1.45% of all your wages = $1,015.
Step 3 — Illinois state income tax $3,320
- Start from your adjusted income: $70,000.
- Subtract Illinois’s standard deduction: −$2,925.
- That leaves a state taxable income of $67,075.
Illinois uses a flat tax: one rate for everyone. Multiply your state taxable income by 4.95% = $3,320.
Putting it all together
Add up every tax above — federal, Social Security, Medicare, state — for a total of $15,245. Subtract that from your gross pay to get your take-home: $54,755.
Your effective tax rate is 21.78% — the share of your income that actually went to taxes. Notice it’s lower than your top bracket, because only your last dollars are taxed at the highest rate.
The table above shows federal income tax, the flat 4.95 percent Illinois rate, and FICA, with the resulting take-home pay and effective rate. Chicago residents pay exactly the same as residents of Peoria or Rockford.
No Illinois city can levy an income tax
This is not a Chicago policy choice. Illinois does not permit municipalities to impose income taxes at all, so the flat state rate is the only income tax anywhere in the state. Compare that to Ohio, where hundreds of municipalities levy their own, or Pennsylvania, where nearly every one does.
For a $70,000 earner deciding between Chicago and a suburb, or between Illinois and a neighbouring state, this removes an entire category of complication. Your pay stub does not change if you move within Illinois, and your employer does not need to know which township you live in.
The money comes back at the register
Chicago’s combined sales tax reaches 10.25 percent on general merchandise, among the highest of any major American city. It stacks four layers: 6.25 percent from the state, 1.25 percent from the city, 1.75 percent from Cook County, and 1 percent for the Regional Transportation Authority.
Restaurant meals face the full rate, and in parts of downtown additional levies push it higher still. Groceries and prescription drugs are treated far more gently, which limits the damage for essentials but not for anything else.
The result is a genuine trade rather than a saving. An income tax takes a fixed share of what you earn. A sales tax takes a share of what you spend, which means the comparison depends entirely on your own saving rate. A $70,000 earner who saves aggressively does well out of the Chicago arrangement. One who spends everything does not.
And at the property line
Cook County property taxes are the other half of the answer, and they are covered in more detail on the $100,000 page. For a renter at $70,000 the effect arrives indirectly through rent. For an owner it is direct and substantial.
Where the federal brackets sit
After the $16,100 standard deduction, taxable income crosses $50,400, putting the top slice in the 22 percent federal band for 2026. Combined with the flat state rate and FICA, your marginal rate on an additional dollar is around 35 percent, and it stays there as your income climbs because Illinois adds no escalation of its own.
Work out your exact take-home pay
Use the payroll calculator with Illinois selected. The rung below is $40,000 after taxes in Illinois.
Frequently asked questions
How much is $70,000 after taxes in Illinois?
It depends on your filing status. The breakdown above covers federal income tax, the flat 4.95 percent Illinois rate, and FICA for a single filer. There is no local income tax anywhere in Illinois, so Chicago residents pay the same as everyone else.
Does Chicago have a city income tax?
No. Illinois does not permit municipalities to levy income taxes, so the flat state rate is the only income tax in the state. This distinguishes Chicago from New York City and Philadelphia, both of which tax residents directly.
What is the sales tax in Chicago?
10.25 percent on general merchandise, combining 6.25 percent state, 1.25 percent city, 1.75 percent Cook County, and 1 percent for the Regional Transportation Authority. It is among the highest of any major American city, though groceries and prescription drugs are treated more favourably.
Is it cheaper to live in Chicago than New York on the same salary?
On income tax specifically, yes, because Chicago levies none while New York City does. Whether it works out cheaper overall depends on your spending, since Chicago recovers revenue through one of the highest sales tax rates in the country and Cook County property taxes are substantial.
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