Illinois

Q: Employer Obligations (What Your Employer Must Withhold & Remit)

Register for withholding and unemployment. Unemployment applies to the first $13,590 of wages.

Work State Tax Rate

Flat 4.95%

Withholding Starts

After 30 days

Law Last Updated

No change 2025/2026

Employee Obligations (Which Returns YOU Must File)

If you physically work in Illinois, file a nonresident Illinois return (tax rate: Flat 4.95%). Then file your New York return and claim the Form IT-112-R credit so you don't get taxed twice on the same income.

Employer Obligations (What Your Employer Must Withhold & Remit)

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Employee/Individual Tax Source: https://tax.illinois.gov/research/taxinformation/withholdingincometax.html

Employer/Withholding Source: https://tax.illinois.gov/research/publications/pubs/who-is-required-to-withhold-illinois-income-tax/withholding-illinois-income-tax-for-my-employees.html

Row last reviewed: May 9, 2026Home state credit form: Form IT-112-R

This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.