1. What is Net Salary Calculation?

The net salary calculation determines take-home pay after deducting all mandatory taxes and contributions. For Illinois government employees, this includes federal tax, Illinois state tax (4.95% flat rate), and FICA contributions (7.65% for Social Security and Medicare).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Annual pre-tax earnings
• Federal Tax — Amount withheld for federal income tax
• 0.0495 — Illinois state tax rate (4.95%)
• 0.0765 — FICA rate (7.65%)

3. Importance of Net Salary Calculation

Details: Understanding net salary helps with budgeting, financial planning, and verifying paycheck accuracy. It's particularly important for Illinois government employees due to the state's flat income tax rate.

4. Using the Calculator

Tips: Enter your annual gross salary and estimated federal tax withholding. The calculator will automatically compute Illinois state tax (4.95%) and FICA contributions (7.65%).

5. Frequently Asked Questions (FAQ)

Q1: Why is Illinois state tax a flat rate?
A: Illinois has a flat income tax rate of 4.95% for all income levels, unlike the progressive federal tax system.

Q2: What's included in FICA?
A: FICA includes 6.2% for Social Security and 1.45% for Medicare (total 7.65%). High earners may pay additional Medicare tax.

Q3: Are there other deductions not included?
A: This calculator doesn't account for retirement contributions, health insurance premiums, or other voluntary deductions.

Q4: How accurate is this for Illinois government employees?
A: This provides a baseline estimate. Actual paychecks may vary based on specific benefit elections and payroll cycles.

Q5: When does the Illinois tax rate change?
A: The 4.95% rate has been in effect since 2017. Any future changes would require legislative action.