$100k in Chicago
Your salary isn't what you earn. It's what you keep.
See the exact impact of IL taxes and Chicago living costs on your paycheck.
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2026 IRS Brackets • FICA Limits • State & Local Rules
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📊 Chicago Salary Guide
The Real Salary Guide: Chicago, IL ($100k Analysis)
You see a six-figure offer. The number looks solid. But what hits your bank account in Chicago is a different story. We ran the numbers on a $100,000 salary to see how deep you can actually cut into the Windy City.
The Verification Test ($100,000 Analysis)
Let's run the "Sticker Price" against the "Take Home" reality.
A $100,000 salary in Chicago is a mirage before you even see the first paycheck. Between the feds and the state, you are losing nearly 27% of your gross income immediately.
- Sticker Price: $100,000
- The Damage:
- Federal Tax: -$13,614
- FICA Tax: -$7,650
- State Tax: -$4,950 (Illinois hits hard here)
- Real Cash Flow: $73,786 Annually / $6,149 Monthly
The Analysis:
Illinois is a flat-tax state, and it stings. You are paying $4,950 just for the privilege of working here. That is money that could be going straight into your 401(k). Instead, it vanishes into Springfield.
If you are moving here from a state with no income tax (like Texas or Florida), prepare for a lifestyle haircut. You are effectively taking a $5,000 pay cut just to cover the tax man.
Smart Budget Breakdown (50/30/20 Rule)
With $6,149 hitting your checking account every month, you have to be disciplined. The 50/30/20 rule is the only way to survive Chicago without drowning in debt.
Needs ($3,074/mo)
This is your survival bucket. In Chicago, this number is tight.
- The Rent Reality: A decent one-bedroom in a safe, non-tourist neighborhood (think Logan Square, Pilsen, or Lakeview) will run you roughly $2,000 to $2,300.
- The Math: After rent ($2,200), you have $874 left for utilities, CTA transit passes, groceries, and insurance. This is doable, but it requires you to cook at home and skip the Uber Lux rides. You are purchasing power is "comfortable but cautious."
Wants ($1,845/mo)
This is your social life.
- Chicago is a "going out" city. A single dinner and drinks in River North can easily burn $150.
- With $1,845, you can go out 3-4 times a week, but you can't go wild. This budget covers your gym, streaming services, and a summer festival ticket. It is a healthy allocation, but it disappears fast if you aren't watching it.
Savings ($1,230/mo)
This is your escape velocity.
- Wealth Creation: Saving $1,230 monthly is the bright spot here. That is $14,760 a year free of capital gains tax if you put it in a 401(k).
- The Strategy: If you max out your tax-advantaged accounts, this $1,230 is your down payment fund or your investment seed. In Chicago, you need a robust savings plan because the cost of living isn't getting cheaper.
Chicago Taxes vs The Competition
How does Chicago stack up against other major hubs? We ran the numbers on a $100k salary.
| City | Gross Salary | State Tax | Local Tax | Net Pay |
|---|---|---|---|---|
| Chicago, IL | $100,000 | $4,950 | $0 | $73,786 |
| New York, NY | $100,000 | ~$5,100 | ~$1,200 | ~$72,000 |
| Austin, TX | $100,000 | $0 | $0 | $78,736 |
The Verdict:
Chicago is cheaper than NYC, but it is significantly more expensive than Austin. The lack of a local city tax (unlike NYC's J-51 and Yonkers taxes) saves you some grief, but Illinois State Tax is the killer.
If you want to keep your cash, move to Texas. If you want deep dish and skyscrapers, you pay the premium.
Frequently Asked Questions (FAQ)
Q: What is the income tax rate in Chicago?
A: Chicago relies on a combined tax structure. You pay a flat 4.95% Illinois State Income Tax, plus Federal taxes. There is no specific "City of Chicago" income tax, though sales taxes are high.
Q: Is $100k a good salary in Chicago?
A: Yes, it is a good salary. It allows for a comfortable lifestyle, a modern apartment, and savings. However, it does not make you "rich." You will still need to budget for major expenses like buying a home, which is becoming increasingly difficult in the city.
Q: Does Chicago have a local city tax?
A: No. Unlike cities like St. Louis or Philadelphia, the City of Chicago does not levy a separate local income tax on residents. You only pay the Illinois state tax.
Methodology: Calculations based on IRS 2026 tax brackets (Projected), Bureau of Labor Statistics (BLS) inflation data, and Illinois State Comptroller tax rates. Standard deduction and FICA (7.65%) applied. Net pay assumes single filer taking the standard deduction.