Illinois · 2026 employer costs
The cost of an employee in Illinois
At a $75,000 salary, the fully-burdened cost of an employee in Illinois is about $81,407, the 35th-lowest of 51 — above Oklahoma ($81,361) and Wisconsin ($81,338), below Alaska ($81,427) and Colorado ($81,431).
Illinois's 2026 state unemployment (SUI) tax applies to the first $14,250 of each employee's wages, at a 3.35% new-employer rate. Experienced employers pay 0.75%–7.05% based on their layoff history. Illinois adds no employer-specific payroll tax beyond SUI; its income tax is withheld from employees, not paid by you.
Illinois SUI and FUTA quick rates
2026 employer-side planning defaults, before experience-rating adjustments.
- Default SUI rate
- 3.35%
- New-employer rate; use your notice rate if available.
- SUI taxable wage base
- $14,250
- Maximum wages subject to Illinois SUI per employee.
- New-employer SUI maximum
- $477
- Taxable wage base × the new-employer rate; experience rates vary.
- Net FUTA maximum
- $42
- Assumes the full standard credit after timely state UI payment: 0.60% on the first $7,000.
Review the federal FUTA sources and Illinois rate sources.
Illinois employer payroll tax calculator
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How the $6,407 on top of salary breaks down
- Social Security73%
- Medicare17%
- FUTA1%
- State SUI7%
- Workers' comp2%
| Cost item | Rate or assumption | annual amount |
|---|---|---|
| Base wages | Annual rate basis | $75,000 |
| Social Security (employer) | 6.20% up to $184,500 | $4,650 |
| Medicare (employer) | 1.45% (no cap) | $1,088 |
| FUTA | 0.60% on first $7,000 | $42 |
| State unemployment (SUI/IL) | 3.35% up to $14,250 | $477 |
| Workers' compensation (est.)est. | ~0.20% (office/clerical est.) | $150 |
| Total annual cost | $81,407 |
$75,000 annualized wages · 2,080 paid hours · Illinois · 1 in role · 1 total employer headcount · tax year 2026.
Health $0/year · retirement 0% · other benefits 0% · payroll/PEO fees $0/year.
Employer-paid costs only — employee withholdings (state income tax, SDI, employee-funded leave) are excluded; these are costs on top of wages, not deductions. Estimate for budgeting, not tax advice. Defaults use the new-employer SUI rate and an office-class workers'-comp estimate. See methodology.
Illinois employer payroll taxes (2026)
- State income tax on wages
- Yes
- State unemployment (SUI) wage base
- $14,250
- SUI new-employer rate
- 3.35%
- SUI rate range (experienced)
- 0.75% – 7.05%
- FUTA (federal unemployment)
- 0.60% on first $7,000Standard 0.6% net rate (no projected credit reduction).
- Workers' comp (office class, est.)
- ~$0.1–$0.3 / $100Estimate — set by your carrier and experience rating.
2026 tax year · each Illinois figure carries a primary and an independent source (see sources) · last verified June 2026.
Worked examples
Default employer-cost estimates in Illinois, using 2026 rates:
| Salary | Added | Total cost | Burden |
|---|---|---|---|
| $45,000 | $4,052 | $49,052 | +9.0% |
| $75,000 | $6,407 | $81,407 | +8.5% |
| $120,000 | $9,939 | $129,939 | +8.3% |
Hourly wage examples
Assumes 40 hours/week for 52 paid weeks.
| Base rate | Burden / hr | Loaded / hr | Burden |
|---|---|---|---|
| $20.00 | $1.82 | $21.82 | +9.1% |
| $40.00 | $3.39 | $43.39 | +8.5% |
Both tables include Social Security (6.20% to $184,500), Medicare, net FUTA, Illinois SUI at the new-employer rate (3.35%), automatically modeled state employer charges, and an office workers'-comp estimate. They assume a total employer headcount of one and exclude optional benefits.
Illinois employer cost FAQ
How much does it cost to employ someone in Illinois?
Beyond salary, a Illinois employer pays Social Security and Medicare (7.65% combined), FUTA, and Illinois state unemployment on the first $14,250 of wages. For a $75,000 salary that totals about $81,407 (+8.5%) before optional benefits.
What is the Illinois SUI / SUTA rate for 2026?
The 2026 Illinois taxable wage base is $14,250. New employers pay 3.35%; experienced employers range 0.75%–7.05% based on their claims history.
What employer payroll costs are specific to Illinois?
Illinois adds no employer-specific payroll tax beyond SUI; the rest of the stack is the federal FICA and FUTA every US employer pays.
How much does an employer pay for payroll tax?
For a $75,000 salary in Illinois, an employer pays about $6,407 in payroll taxes and workers' comp on top of wages — roughly 8.5% — for a fully-burdened cost near $81,407. The Illinois SUI rate is the main variable.
How much does a $20 an hour employee cost an employer?
A $20/hour employee (about $41,600 a year) in Illinois costs an employer roughly $45,385 fully burdened — about 9.1% over wages — once Social Security, Medicare, FUTA, Illinois SUI and workers' comp are added.
States with a similar cost of employment
Read how the burden stack works in our labor burden rate guide, compare 1099 vs W-2 employer costs, and see every figure sourced in our methodology.