Illinois Overtime Calculator

Not fully. For 2025-2028 the federal premium, the "half" of time-and-a-half, is also deductible when you file, up to $12,500 ($25,000 married filing jointly). It's claimed on Schedule 1-A, phases out above $150,000 of income ($300,000 joint), and doesn't reduce Social Security or Medicare. It's a federal deduction, so don't assume Illinois income tax follows it. Your employer still withholds on overtime unless you claim the deduction on a new W-4, so for most people it shows up as a bigger refund.

Overtime can push your annualized income into a higher bracket, but only the dollars above the threshold are taxed at the higher rate: you always take home more by working the hours. Priced for Illinois: five overtime hours a week is worth $7,351 a year after tax, ten overtime hours a week is worth $14,203 a year after tax, fifteen overtime hours a week is worth $20,579 a year after tax, against $19,500 gross on the middle figure.

Under the Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular rate beyond 40 hours in a workweek. Illinois adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.

Illinois follows the federal FLSA standard: at least 1.5× your regular rate for hours beyond 40 in a workweek, with no additional daily-overtime requirement. If you believe you're owed overtime, the Illinois Department of Labor is the place to check. Our calculator uses the standard 1.5× multiplier.

Add regular earnings (rate × regular hours) to overtime earnings (rate × 1.5 × overtime hours), then subtract federal tax, Illinois income tax and FICA. In Illinois that leaves about 72.8% of each overtime dollar: $14,203 of the $19,500 that ten overtime hours a week adds over a year.

Against the 5 states Illinois borders, the same ten overtime hours a week is worth $14,203 here: Indiana keeps $390 more ($14,593), Kentucky keeps $283 more ($14,486), Iowa keeps $224 more ($14,427), Wisconsin keeps $57 more ($14,260) and Missouri keeps $49 more ($14,252). Indiana, Iowa, Kentucky, Missouri and Wisconsin are the only borders worth crossing for the tax alone.

Illinois property taxes are among the highest in the nation, especially in Chicago and surrounding suburbs. A $400,000 home in Chicago might incur $8,000-$12,000+ annually in property taxes (roughly $667-$1,000 monthly), which can offset income tax savings compared to other states. These taxes come through mortgage escrow or direct property tax bills, not on your paycheck, which is why many people don't factor them in when comparing states.

It depends on your income level and property ownership. High earners ($300,000+) will likely save $10,000-$20,000+ annually compared to California's progressive brackets. However, Illinois property taxes are among the highest in the nation ($8,000-$12,000+ for typical homes in Chicago area), which can offset income tax savings for homeowners. Middle-income earners ($75,000-$150,000) might see smaller savings or even pay more in Illinois than in California's lower brackets. Factor in property ownership when evaluating Illinois.