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Illinois Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against Illinois Department of Employment Security's own pages and the other official sources below

Illinois employers pay state unemployment tax (SUTA) on the first $14,250 of each employee's wages in 2026, and new employers pay 3.35% — at most $477.38 per employee for the year. Every Illinois employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).

SUTA wage base
$14,250
per employee, 2026
New-employer rate
3.35%
2026
New-employer max
$477.38
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in Illinois?

Enter your headcount and average pay to see the employer's share of Illinois and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.

Illinois employer payroll tax estimator · 2026

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3.35% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
Illinois unemployment (SUTA)
3.35% × first $14,250 per employee
$2,387
Federal unemployment (FUTA)
0.6% × first $7,000 after the full state credit
$210
Social Security (employer half)
6.2% × first $184,500
$15,500
Medicare (employer half)
1.45% of all wages
$3,625
Total employer taxes$21,722
Per employee$4,344

Assumes every employee earns the average and works in Illinois all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.

Illinois unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$14,250 per employee (26th highest of 51)
New-employer rate
3.35%
How the new-employer rate works
2026 standard new-employer rate 3.35% including the 0.55% fund builder; 3.45% for administrative support & waste management.
Most a new employer pays per employee
$477.38 (3.35% × $14,250)
Experience-rated range (2026, as published)
0.75% to 7.05%
2025 average employer rate
2.69% of taxable wages (U.S. DOL)
Employee contribution
None — employer-paid only
Agency
Illinois Department of Employment Security

Register with Illinois Department of Employment Security when you first pay wages in Illinois; you get an account number for quarterly wage reports and tax payments.

Federal payroll taxes every Illinois employer pays

  • Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
  • Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
  • FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Illinois unemployment tax paid on time = 0.6%, or $42 per employee.
  • Federal income tax withholding from each paycheck based on the employee's Form W-4.

Next for Illinois employers: Illinois paycheck calculator (employee withholding) · Illinois new hire reporting · Illinois payday & final paycheck rules · Illinois workers' comp · full payroll cost calculator

Illinois payroll tax FAQ

What is the Illinois SUTA rate for new employers in 2026?

3.35%. 2026 standard new-employer rate 3.35% including the 0.55% fund builder; 3.45% for administrative support & waste management.

What is the Illinois SUTA wage base for 2026?

$14,250 per employee. Once an employee's 2026 wages pass that amount, you stop paying Illinois unemployment tax on them for the rest of the year. That is the 26th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in Illinois?

No. In Illinois unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.

What other payroll taxes do Illinois employers pay?

For 2026, Illinois has no statewide paid-leave or disability payroll tax, so the state-level employer tax is unemployment insurance. You still withhold any state income tax from employees' pay.

How much FUTA do Illinois employers pay?

0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Illinois unemployment tax on time. Illinois is not a credit-reduction state for 2026.

How does my Illinois SUTA rate change after the first years?

New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Illinois Department of Employment Security assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.75% to 7.05%. Use the rate on your annual rate notice. The 2025 average employer rate in Illinois was 2.69% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

Related Resources on This Site

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General information, not tax advice. Rates change every year; confirm yours on the notice from Illinois Department of Employment Security before filing.