Illinois (IL) – 2023

Illinois Effective 1/1/2023 Federal Effective 7/24/2009

Minimum WageIllinoisFederal
Minimum Wage$13.00$7.25
Minimum Cash Wage (Tipped Employee)$7.80$2.13
Maximum Tip Credit$5.20$5.12
Youth Minimum Wage$13.00$4.25
State Income TaxIllinoisFederal
Wage Withholding4.95%
Supplemental Wage / Bonus Rate4.95%
Unemployment InsuranceIllinoisFederal
Maximum 2023 Taxable Earnings (no change from 2022)$13,271
Employee 2023 DeductionNone
Employer 2023 Tax Rates (Includes 0.55% fund-building surtax)0.850% – 8.650%
Standard 2023 New Employer Rate (Includes 0.55% fund-building surtax)3.950%
Voluntary Contribution PermittedNo

Federal (FED) – 2023

Minimum WageFederal
Youth Minimum Wage$4.25
Maximum Tip Credit$5.12
Minimum Cash Wage (Tipped Employee)$2.13
Minimum Wage$7.25
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)0.90%
Maximum Taxable EarningsNo Limit
Maximum Taxable Earnings (Increased from $147,000 in 2022)$160,200
Employee / Employer Tax Rate (Unchanged from 2022)6.20%
Normal Net Tax0.60%
Maximum Credit5.40%
Percent of Taxable Wages6.00%
Maximum Taxable Earnings$7,000
Health Savings AccountsFederal
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2022)$1,000
Family Contribution Limit (Employee / Employer) (Increased from $7,300 in 2022)$7,750
Self-Only Contribution Limit (Employee / Employer) (Increased from $3,650 in 2022)$3,850
Pension PlansFederal
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,500 in 2022)$7,500
Supplemental Wage / Bonus RatesFederal
Pay over $1 Million (Unchanged from 2022)37%
Flat Rate Withholding Method (Unchanged from 2022)22%

Illinois State Resources

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