Peoria, IL Salary Guide: The Real Value of a $100,000 Paycheck

In Peoria, Illinois, a six-figure salary looks different than it does on a recruiting brochure. You see $100,000, but the government sees a revenue stream. To understand your actual purchasing power in the River City, you have to cut through the tax drag and apply a disciplined budget.

Here is the unvarnished math behind a $100,000 salary in Peoria.

The Verification Test ($100,000 Analysis)

Let’s run the "Sticker Price" through the reality filter of the 2026 tax code. This is the difference between what you are promised and what actually hits your bank account.

The Breakdown:

• Gross Salary: $100,000
• Federal Tax: -$13,614
• FICA Tax: -$7,650
• State Tax (IL): -$4,950
• Local Tax: $0

The Verdict:

• Total Take Home Pay: $73,786
• Effective Tax Rate: 26.2%

Analysis:
The "sticker price" of $100,000 is a mirage. You are losing roughly 26 cents of every dollar earned to taxes before you buy a single coffee. In Peoria, your $100,000 salary is actually a $73,786 lifestyle allowance. The $26,214 difference is the cost of doing business in the U.S. economy.

Smart Budget Breakdown (50/30/20 Rule)

With a monthly net income of $6,149, the 50/30/20 rule isn't just a suggestion—it’s a wealth accelerator in a low-cost market like Peoria.

Needs: $3,074/month

This bucket covers rent, utilities, groceries, and insurance.

• The Rent Reality: In Peoria, the median rent for a 1-bedroom apartment hovers around $900–$1,100. Even if you splurge on a luxury unit for $1,500, you are utilizing less than 25% of your "Needs" budget.
• Purchasing Power: With $3,074 dedicated to survival, you aren't just scraping by; you are living comfortably. You can cover high-tier utilities, a reliable car payment, and premium groceries with room to spare.

Wants: $1,845/month

This is your discretionary spending—dining out, hobbies, and entertainment.

• The Peoria Advantage: $1,845 goes a long way in the Gateway District or the Warehouse District. You can afford frequent dinners out, concert tickets, and weekend trips without checking your balance.

Savings: $1,230/month

• Wealth Creation: This is the most critical number. Saving $1,230 monthly equals $14,760 per year.
• The Trajectory: If you invest this $1,230 monthly into a standard S&P 500 index fund, compounding interest turns this into a significant portfolio over a decade. In Peoria, a $100k salary allows you to save the equivalent of a entry-level salary elsewhere.

Peoria Taxes vs The Competition

Peoria’s tax situation is a mixed bag. It is not a tax haven, but it is far from a tax trap.

• Vs. New York City: If you earned $100k in NYC, you would face a brutal combination of City, State, and Federal taxes. Your take-home pay would plummet to roughly $64,000. Peoria gives you $9,786 more in spendable cash annually.
• Vs. Austin, Texas: Texas has no state income tax. Austin would net you approximately $76,000 (roughly $2,200 more than Peoria). However, Peoria’s cost of living is significantly lower than Austin’s. That $2,200 difference is easily erased by Austin’s higher rent and insurance premiums.

The Takeaway: Peoria’s 4.95% flat state tax hurts, but the lack of a local city tax keeps you competitive against major metros.

Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Peoria?
A: Peoria residents pay a flat 4.95% state income tax to Illinois. There is currently no local city income tax added to that rate. Combined with Federal and FICA taxes, your total effective tax burden is roughly 26%.

Q: Is $100k a good salary in Peoria?
A: Yes. With a take-home pay of $73,786, you are earning significantly above the median household income for the area. This salary allows for a high standard of living, aggressive savings, and the ability to afford a mortgage on a median-priced home with ease.

Q: Does Peoria have a local city tax?
A: No. As of the current fiscal data, Peoria does not levy a municipal income tax on residents, which keeps your payroll calculations simpler compared to cities like Chicago or St. Louis.

• Methodology: Calculations based on IRS 2026 single-filer standard deduction brackets, Illinois Department of Revenue flat tax rates, and FICA standard (7.65%). Budget recommendations utilize the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey guidelines.
• Sources: Internal Revenue Service (IRS), U.S. Bureau of Labor Statistics (BLS), Illinois Department of Revenue, City of Peoria Comptroller Data.