Is unemployment income taxable in Illinois?

Check whether Illinois taxes unemployment compensation for 2025 or 2026 by entering benefit amounts and other income. The tool estimates the state tax impact and whether additional payments may be needed.

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How this calculation works

  • Uses unemployment benefits and other income inputs.
  • Applies Illinois taxability rules to estimate state tax.
  • Highlights whether additional payments may be needed.

Common mistakes and caveats

  • Federal tax rules are separate from Illinois rules.
  • Withholding on benefits is optional.
  • Local taxes are not included.

FAQ

Do I need Illinois withholding on unemployment benefits?

Withholding on unemployment is optional. This tool estimates the potential Illinois tax impact.

Last updated & sources

Last updated January 27, 2026.

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