What is the SUTA rate in Illinois?

Illinois's SUTA (State Unemployment Tax) rates range from 0.5% to 6.75%, with a typical new employer rate around 2.75%. The SUTA wage base is $13,590 per employee.

Does Illinois have state income tax?

Yes, Illinois has a state income tax. While this is paid by the employee (not the employer), it affects take-home pay and overall compensation planning.

What workers' compensation insurance costs in Illinois?

The average workers' compensation rate in Illinois is approximately 1.19% of payroll. For a $60,000 salary, that's about $714 per year. Rates vary significantly by industry and claims history.

How Much Does It Cost to Hire an Employee in Illinois? (2026)

State-specific payroll taxes, workers' comp, and total employer costs in Illinois.

Total Cost at $60K Salary

$65,720

Cost multiplier: 1.1x

SUTA Rate (Mid)

2.75%

Wage base: $13,590

Workers' Comp Rate

1.19%

Has state income tax

Illinois Employer Tax Details

State-specific payroll obligations for employers

SUTA Rate Range	0.5% – 6.75%
SUTA New Employer Rate (typical)	2.75%
SUTA Wage Base	$13,590
Workers' Compensation (avg)	1.19% of payroll
State Income Tax	Yes

Example Employer Costs in Illinois

Mandatory employer taxes only (no benefits or overhead)

Component	$40,000 Salary	$60,000 Salary	$80,000 Salary
Social Security (6.2%)	$2,480	$3,720	$4,960
Medicare (1.45%)	$580	$870	$1,160
FUTA	$42	$42	$42
SUTA (IL)	$374	$374	$374
Workers' Comp	$476	$714	$952
Total Employer Taxes	$3,952	$5,720	$7,488
Total Cost (salary + taxes)	$43,952 (1.1x)	$65,720 (1.1x)	$87,488 (1.09x)

These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.

How Illinois Compares

Illinois's typical SUTA rate of 2.75% is above the national average of ~1.70%.

Workers' compensation at 1.19% of payroll is below the national average of ~1.20%.

Employee Costs in Other States

Alabama AL Alaska AK Arizona AZ Arkansas AR California CA Colorado CO Connecticut CT Delaware DE District of Columbia DC Florida FL Georgia GA Hawaii HI Idaho ID Indiana IN Iowa IA Kansas KS Kentucky KY Louisiana LA Maine ME Maryland MD Massachusetts MA Michigan MI Minnesota MN Mississippi MS Missouri MO Montana MT Nebraska NE Nevada NV New Hampshire NH New Jersey NJ New Mexico NM New York NY North Carolina NC North Dakota ND Ohio OH Oklahoma OK Oregon OR Pennsylvania PA Rhode Island RI South Carolina SC South Dakota SD Tennessee TN Texas TX Utah UT Vermont VT Virginia VA Washington WA West Virginia WV Wisconsin WI Wyoming WY

Related Calculators

Interactive Employee Cost Calculator

Customize salary, state, and benefits for your exact situation

Startup Cost Estimator

Estimate all business startup costs including labor

Calculate Your Exact Employee Cost

Use our interactive calculator with your specific salary, state, and benefits to get an exact number.

Open Employee Cost Calculator

More Free Calculators

Break-Even Calculator

Find how many units to sell to cover costs

Markup & Margin

Convert between markup and margin percentages

Startup Cost Estimator

Estimate one-time and recurring startup costs

Loan Comparison

Compare loan options side by side

Profit Margin Calculator

Calculate gross, operating, and net margins

Employee Cost Calculator

Find the true cost of hiring an employee

Get Free Business Tips

Join small business owners getting weekly financial tips and calculator updates. No spam, unsubscribe anytime.

We respect your privacy. Unsubscribe with one click.