The Illinois bonus tax calculator at the top of this page helps employers quickly estimate the net (take-home) pay employees should receive for bonus payments, using the state’s flat income tax rate.
Behind the numbers
Behind the numbers
Updated: July 8, 2025
Does Illinois tax bonuses?
Yes. Illinois applies a flat income tax rate on all wages, including bonuses. Keep in mind that withholding also applies to commissions and other supplemental compensation, including vacation pay that’s paid in addition to regular wages for the vacation period.
How to calculate bonus tax in Illinois
Apply the state’s flat withholding rate of 4.95% to any bonus, in addition to the 22% federal rate. You can use the calculator at the top of this page to do this for you also.
How can employers in Illinois pay bonuses to employees?
Bonuses can be paid via:
- Check
- Direct deposit
- Pay card
Why are bonuses taxed differently than standard pay?
In Illinois, they’re not — the same rate applies to regular and supplemental wages.
How much tax is taken out of a bonus in Illinois?
Here are the percentages you’ll want to pay attention to:
- 4.95% state + 22% federal = 26.95%, plus other deductions as applicable.