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Paycheck Formula:
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Net pay calculation determines your take-home pay after all deductions from your gross pay. This includes federal tax, state tax (Illinois), FICA (Social Security and Medicare), and local taxes specific to Illinois jurisdictions.
The calculator uses the paycheck formula:
Where:
Explanation: This calculation provides your actual take-home pay after all mandatory deductions specific to Illinois tax laws.
Details: Accurate paycheck calculation helps with budgeting, financial planning, and ensuring proper tax withholding. Understanding your net pay is essential for managing personal finances and planning expenses.
Tips: Enter all amounts in USD. Gross pay and deduction amounts must be positive numbers. Ensure you have accurate figures from your pay stub or employer documentation.
Q1: What is FICA and how is it calculated?
A: FICA includes Social Security (6.2% on income up to $168,600) and Medicare (1.45% on all income, plus 0.9% additional Medicare tax on income over $200,000).
Q2: What is Illinois state income tax rate?
A: Illinois has a flat state income tax rate of 4.95% for all income levels as of 2025.
Q3: Are there local taxes in Illinois?
A: Yes, some Illinois municipalities impose local income taxes. Check with your local government for specific rates.
Q4: How often should I calculate my net pay?
A: Calculate with each pay period, especially when starting a new job, changing withholding allowances, or experiencing significant income changes.
Q5: What if my net pay seems incorrect?
A: Verify your W-4 form with your employer, check for accurate withholding allowances, and consult with HR or a tax professional if discrepancies persist.