The Illinois General Assembly in Public Act 100-0022 increased the state income tax rate for individuals from 3.75 percent to 4.95 percent, effective July 1, 2017. The new income tax rate applies to Illinois income tax withholding on Illinois income, including wages, bonuses, overtime, and commission pay reported to the recipient on a Form W-2.

This rate increase will be reflected beginning with the next payroll pay date of Friday, July 21, 2017.