1. What is Net Salary?

Net salary is the amount of money you take home after all deductions including federal tax, state tax, and FICA (Social Security and Medicare) have been subtracted from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated based on IRS tax brackets and your filing status
• Illinois State Tax — Flat 4.95% of gross income
• FICA — 6.2% for Social Security (up to wage base) + 1.45% for Medicare

3. Illinois Tax Information

Details: Illinois has a flat income tax rate of 4.95% for all income levels. There are no standard deductions or personal exemptions in Illinois.

4. Using the Calculator

Tips: Enter your annual gross salary in USD and select your filing status. The calculator will estimate your take-home pay after all deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are local taxes included in this calculation?
A: No, this calculator only includes federal, state, and FICA taxes. Some Illinois municipalities have local taxes that would further reduce take-home pay.

Q2: What about pre-tax deductions like 401(k)?
A: This calculator assumes no pre-tax deductions. If you contribute to retirement accounts or health savings, your actual take-home pay may be different.

Q3: Is this calculator accurate for all income levels?
A: It provides a good estimate for most taxpayers, but very high incomes may have additional tax considerations not included here.

Q4: How often are the tax brackets updated?
A: Federal tax brackets are adjusted annually for inflation. The calculator uses current year brackets.

Q5: What if I have tax credits?
A: This calculator doesn't account for tax credits which could reduce your actual tax liability.