Verified AscenPay tables
Illinois payroll tax rules, 2026
These are the figures AscenPay uses to run Illinois payroll.
State income tax withholding
Flat rate: 4.95% of taxable wages.
- Each exemption or allowance: $2,850 a year.
State unemployment (employer)
- Taxable wage limit: $13,916 per employee per year.
- New-employer rate used: 3.95%. Your state assigns your actual rate.
Federal taxes (every state)
- Social Security 6.2% employee + 6.2% employer, up to $184,500 of wages.
- Medicare 1.45% employee + 1.45% employer; extra 0.9% employee tax over $200,000.
- Federal unemployment (FUTA) 0.6% on the first $7,000 per employee.