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Illinois Bonus Tax Calculator 2025

Estimate your net bonus after taxes in Illinois

Your Information

Bonus Breakdown

Gross Bonus Amount $0.00
Federal Withholding $0.00
Illinois State Tax (4.95%) $0.00
Social Security Tax (6.2%) $0.00
Medicare Tax (1.45% + Add'l) $0.00
Total Tax Withholding $0.00
Net Bonus (Take-Home) $0.00
Effective Tax Rate 0.00%

How to Use This Calculator

1

Enter Your Annual Salary

Input your regular yearly income (pre-bonus) to determine your base tax situation.

2

Input Bonus Amount

Enter the gross (total before tax) amount of the bonus you are receiving.

3

Select Filing Status

Choose your tax filing status (e.g., Single, Married) for accurate bracket calculations.

4

Choose Withholding Method

Select Percentage (22% flat federal) or Aggregate (combines with regular pay).

5

Review Your Results

See the estimated breakdown of taxes and your final net bonus amount.

For official information about Illinois taxes, visit the Illinois Department of Revenue website.

Illinois Bonus Tax Rates for 2025

Illinois uses a flat 4.95% state income tax rate for all bonuses in 2025. Federal taxes follow supplemental wage rules. Bonuses face a 22% federal rate unless they exceed $1 million, then 37%. Social Security (6.2%) and Medicare (1.45%) also apply up to wage limits. This table breaks down the rates clearly.

Tax TypeRateApplies To
Illinois State Tax4.95%All bonuses
Federal Tax22% or 37%Up to/over $1 million
Social Security6.2%Up to $168,600 (2025 cap)
Medicare1.45%All wages; 2.35% over $200,000

Example Calculation for a $5,000 Bonus in 2025

A $5,000 bonus shows how taxes reduce your pay. Illinois withholds 4.95%, or $247.50. Federal tax at 22% takes $1,100. Social Security takes $310, and Medicare takes $72.50. Your net pay totals $3,270 after all deductions.

    • Gross bonus: $5,000.
    • Illinois tax: $247.50.
    • Federal tax: $1,100.
    • Net pay: $3,270 (single filer, under wage caps).

How Illinois Taxes Bonuses in 2025

Illinois treats bonuses as supplemental wages. The state withholds 4.95% from your bonus for income tax. Employers can use the percentage method or aggregate method for federal taxes. Federal supplemental tax rates are 22% for bonuses up to $1 million and 37% above that. Your net bonus depends on these combined taxes.

  • Illinois flat tax rate: 4.95%.
  • Federal tax rate: 22% or 37% based on bonus size.
  • No local income taxes apply in Illinois.

Recent Illinois Tax Changes for 2025

Illinois updated tax laws for 2025. The state keeps its 4.95% flat income tax rate. Net operating loss deductions rose to $500,000 for businesses. Grocery tax drops to 0% starting January 1, 2026, but not for 2025 bonuses. These changes ensure accurate bonus tax calculations.

  • Flat tax rate unchanged at 4.95%.
  • NOL cap increased from $100,000 to $500,000.
  • No local income tax affects bonuses.

Factors Affecting Your Bonus Tax in 2025

Several factors change your bonus tax amount. Filing status adjusts federal tax brackets.

Bonus size impacts federal rates (22% or 37%). Yearly earnings affect Social Security and Medicare caps. Illinois keeps its 4.95% rate constant regardless of these factors.

  1. Single filers face higher federal rates than married filers.
  2. Earnings over $168,600 skip Social Security tax.
  3. High earners (over $200,000) pay extra 0.9% Medicare tax.

Comparing Illinois Bonus Tax to Other States

Illinois’s 4.95% flat rate differs from other states. Neighboring Wisconsin uses graduated rates up to 7.65%.

Iowa applies rates from 0.33% to 6%. Kentucky matches Illinois with a 4.5% flat rate.

Federal supplemental rates remain consistent across states.

StateTax RateNotes
Illinois4.95% flatNo local income tax
Wisconsin3.54%–7.65%Graduated rates
Iowa0.33%–6%Graduated rates
Kentucky4.5% flatSimilar to Illinois

Tips to Maximize Your Bonus Take-Home Pay

You can reduce taxes on your 2025 bonus. Contribute to a 401(k) to lower taxable income.

Use pre-tax deductions like health savings accounts. Spread bonuses across paychecks if possible.

Consult a tax professional for personalized advice.

  • 401(k) contributions cut federal taxable income.
  • HSAs reduce both federal and state tax.
  • Splitting bonuses may avoid higher tax brackets.

Illinois Bonus Tax 2025 FAQs

What is the Illinois Bonus Tax for 2025?

There is no separate "Illinois Bonus Tax." Bonuses are taxed as regular income. Illinois applies a flat 4.95% state income tax rate. Federally, bonuses are supplemental income with higher withholding rates. Use calculators like PaycheckCity for precise estimates. Check your W-2 for accurate reporting.

How is a bonus taxed in Illinois in 2025?

Bonuses are taxed at Illinois’ flat 4.95% state rate. Federally, they are supplemental income, taxed at 22% (or 37% if over $1 million) using the percentage method. If combined with regular pay, the aggregate method applies. This affects federal withholding, not state tax. Confirm payment details with your employer. Use OnPay’s calculator for clarity.

What are the tax rates for bonuses in Illinois for 2025?

Illinois taxes bonuses at a flat 4.95% state rate. Federally, the percentage method applies 22% for bonuses up to $1 million and 37% for larger amounts. If paid with regular wages, the aggregate method calculates tax on total income. Social Security and Medicare taxes also apply. Visit Illinois Department of Revenue for details.

Is there a difference between how regular income and bonuses are taxed in Illinois?

Yes, federally, bonuses are supplemental income with 22% or 37% withholding rates. Illinois taxes both regular income and bonuses at 4.95%. The federal percentage method applies to separate bonus payments. The aggregate method combines bonuses with regular pay. This affects only federal, not state, tax calculations. Review Bankrate’s guide for more.

How can I calculate the tax on my bonus in Illinois for 2025?

Use online tools like PaycheckCity or OnPay. For separate bonuses, federal tax is 22% (or 37% if over $1 million); state tax is 4.95%. If combined with regular pay, use the aggregate method. Input your bonus amount and payment method. Check with your employer for accuracy. Save results for tax planning.

Are there any deductions or credits that apply to bonuses in Illinois?

Bonuses qualify for standard or itemized deductions like regular income. New 2025 credits, like REV Illinois and MICRO, may apply if eligible. The personal exemption increased to $2,850 in 2025, reducing taxable income. Pre-tax contributions to 401(k)s also lower tax liability. Explore credits at Illinois Department of Revenue. Consult a tax professional for specifics.

Does the way my bonus is paid affect how it’s taxed?

Yes, federal withholding depends on payment method. Separate bonus checks use the percentage method (22% or 37%). Bonuses paid with regular wages use the aggregate method, taxing total income. Illinois state tax remains 4.95% regardless. Verify payment structure with your employer. Use PaycheckCity’s aggregate calculator for estimates.

What if my bonus is over $1 million; how is it taxed differently?

Bonuses over $1 million face a 37% federal withholding rate for separate payments. Illinois state tax remains 4.95%. If combined with regular pay, total income determines federal tax. Social Security and Medicare taxes also apply. Plan for higher tax liability with large bonuses. See OnPay’s guide for calculations.

Can I reduce my bonus tax by contributing to retirement accounts?

Yes, pre-tax contributions to 401(k)s or IRAs reduce taxable income. This lowers taxes on bonuses and regular pay. Illinois taxes bonuses at 4.95% after deductions. Check 2025 contribution limits with your plan provider. Other deductions, like health insurance, may help. Consult a financial advisor for strategies.

How does the Illinois bonus tax compare to federal bonus tax?

Illinois taxes bonuses at a flat 4.95% state rate. Federally, bonuses are supplemental income, taxed at 22% (or 37% for over $1 million) for separate payments. The aggregate method applies if combined with regular pay. Federal taxes are generally higher due to supplemental rates. Review NerdWallet’s Illinois tax guide for context.

Are there any recent changes to the Illinois bonus tax for 2025?

No specific changes to bonus taxation exist for 2025. Illinois maintains a 4.95% flat rate. New tax credits, like REV Illinois and MICRO, start in 2025 and may offset taxes. The personal exemption rose to $2,850. Check Illinois Department of Revenue for updates. Monitor for legislative changes.

Do I need to do anything special when filing my taxes if I received a bonus?

No, bonuses are reported as regular income on your W-2. Include them in your tax return like other wages. Higher federal withholding may apply if paid separately. Use tax software or a professional for accuracy. No additional forms are typically needed. Visit Illinois Department of Revenue for filing guidance.

How can I minimize my tax liability on a bonus in Illinois?

Increase pre-tax contributions to 401(k)s or IRAs to lower taxable income. Claim eligible deductions and 2025 credits like REV Illinois. Adjust regular paycheck withholding to balance taxes. Consider deferring bonuses if feasible. Consult a tax advisor for personalized advice. Explore options at NerdWallet.

Is the bonus tax the same for all types of bonuses (e.g., signing bonus, performance bonus)?

Yes, signing, performance, and other bonuses are taxed as supplemental income. Federal withholding is 22% (or 37% for over $1 million) for separate payments. Illinois taxes all at 4.95%. Payment method affects federal, not state, tax. Confirm with your employer. See Bankrate’s bonus tax guide.

Where can I find official information about the 2025 Illinois Bonus Tax?

Visit the Illinois Department of Revenue for official tax information. IRS guidelines cover federal bonus taxation. Use calculators like PaycheckCity for estimates. These sources provide accurate, up-to-date details. Check for 2025 updates regularly. Contact a tax professional for complex cases.