How Much Does It Cost to Hire an Employee in Illinois? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Illinois.
Hiring a $60,000/year employee in Illinois costs employers approximately $65,738 total in 2026, including $5,738 in mandatory payroll taxes and workers' comp. That's a 1.1x multiplier on base salary.
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Total Cost at $60K Salary
$65,738
Cost multiplier: 1.1x
SUTA Rate (Mid)
2.75%
Wage base: $14,250
Workers' Comp Rate
1.19%
Has state income tax
Key Insight
For a $60,000 salary in Illinois, employers pay $5,738 in mandatory taxes — a 1.1x cost multiplier. Illinois's SUTA rate (2.75%) is above the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Illinois's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Illinois Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.5% – 6.75% |
| SUTA New Employer Rate (typical) | 2.75% ↓ 0.20% from 2025 |
| SUTA Wage Base | $14,250 |
| Workers' Compensation (avg) | 1.19% of payroll ↓ 0.03% from 2025 |
| State Income Tax | Yes |
2026 Rate Changes in Illinois
- ↓ SUTA rate decreased from 2.95% (2025) to 2.75% (2026) — a 0.20% reduction, saving $29 per $60K employee.
- ↓ Workers' comp rate decreased from 1.22% (2025) to 1.19% (2026) — saving approximately $18 per $60K employee per year.
Rate changes reflect Illinois #{TaxConstants::TAX_YEAR} announcements vs. 2025 baseline. Workers' comp rates are industry averages and vary by classification code.
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) | $392 | $392 | $392 |
| Workers' Comp | $476 | $714 | $952 |
| Total Employer Taxes | $3,970 | $5,738 | $7,506 |
| Total Cost (salary + taxes) | $43,970 (1.1x) | $65,738 (1.1x) | $87,506 (1.09x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Illinois Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
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%.
Illinois Employer Environment
Moderate employer costs- State income tax applies — factor into total compensation packages
- Above-average SUTA rate (2.75% on $14,250 wage base) — one of the higher state unemployment rates nationally
- Workers' comp rate 1.19% — near national average, varies by industry classification
Illinois's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.
Illinois Employment Profile
Illinois has a higher employer tax profile than most Midwest neighbors, with a $14,250 SUTA wage base and elevated workers' compensation costs tied to its comprehensive system.
financial services, food manufacturing, transportation & logistics (O'Hare hub)
Chicago-area employers frequently benchmark total employment cost against Wisconsin and Indiana, where SUTA and workers' comp rates can be meaningfully lower.
Cost at Different Salary Levels in Illinois
Total employer cost including all mandatory payroll taxes
Compare Illinois With
Employee Costs in Other States
Hiring Cost by Industry in Illinois
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Illinois
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $123,140 | 535,120 |
| Legal | $103,540 | 51,250 |
| Computer and Mathematical | $100,250 | 178,480 |
| Architecture and Engineering | $93,520 | 79,070 |
| Healthcare Practitioners and Technical | $82,960 | 376,760 |
| Business and Financial Operations | $80,250 | 391,780 |
| Life, Physical, and Social Science | $78,430 | 42,610 |
| Construction and Extraction | $78,420 | 193,300 |
States With Similar Hiring Costs
These states have SUTA rates close to Illinois's 2.75% — good for cost benchmarking.
Illinois Business Resources
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Simplify Payroll in Illinois
These providers handle tax calculations, filings, and compliance automatically.
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