Employer payroll taxes in Illinois for 2026
On top of each paycheck, a Illinois employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $5,109.38 a year, so the employee costs $65,109.38.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| Illinois unemployment (SUTA) | 3.35% for new employers | First $14,250 |
Illinois unemployment tax (SUTA)
Illinois employers pay state unemployment tax on the first $14,250 of each employee's wages in 2026. A new employer starts at 3.35%, and experienced employers pay from 0.75% to 7.05% depending on their layoff history.
The standard 3.35% starting rate includes the 0.55% fund building rate. A few industries start slightly higher.
What an employee costs in Illinois
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,814.38 | $32,814 | 9.4% | $24,945 |
| $40,000 | $3,579.38 | $43,579 | 8.9% | $32,485 |
| $50,000 | $4,344.38 | $54,344 | 8.7% | $40,025 |
| $60,000 | $5,109.38 | $65,109 | 8.5% | $47,565 |
| $75,000 | $6,256.88 | $81,257 | 8.3% | $58,025 |
| $100,000 | $8,169.38 | $108,169 | 8.2% | $74,375 |
| $125,000 | $10,081.88 | $135,082 | 8.1% | $90,661 |
| $150,000 | $11,994.38 | $161,994 | 8% | $106,511 |
Withholding from Illinois paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare and Illinois income tax. Employees checking their own pay can use the Illinois paycheck calculator. Running a bonus? Use the bonus payroll calculator.
Illinois employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border Illinois, Iowa has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| Illinois | $477.38 | $5,109.38 | $65,109 |
| Indiana payroll calculator | $237.50 | $4,869.50 | $64,870 |
| Iowa payroll calculator | $204.00 | $4,836.00 | $64,836 |
| Kentucky payroll calculator | $324.00 | $4,956.00 | $64,956 |
| Missouri payroll calculator | $213.84 | $4,845.84 | $64,846 |
| Wisconsin payroll calculator | $427.00 | $5,059.00 | $65,059 |
Sources
Illinois unemployment and program rates come from the state's own 2026 figures: ides.illinois.gov, ides.illinois.gov. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.