Travel Nurse Tax Guide: Illinois
2026 income tax rates, reciprocity agreements, and tools to calculate your real take-home pay.
State Income Tax
Only your taxable hourly wages are subject to Illinoisstate income tax. Tax-free stipends (housing, M&IE) are excluded.
Reciprocity Agreements
If you live in one of these states and your only Illinois income is wages, you pay income tax only to your home state — not Illinois:
Give your agency the appropriate exemption form to stop withholding in the assignment state.
Calculate Your Take-Home in Illinois
Common Questions
Does Illinois have a state income tax?
Yes. Illinois taxes wage income at 4.95% flat for 2026.
Does Illinois have tax reciprocity with other states?
Yes. If you live in Indiana, Iowa, Kentucky, Michigan, Wisconsin, you may only owe income tax to your home state on wages earned in Illinois. File the appropriate exemption form with your agency.
How do travel nurse stipends work in Illinois?
Tax-free housing and M&IE stipends are not subject to Illinois state income tax, as long as you maintain a valid tax home. Only your taxable hourly wages count toward Illinois income tax.
Rates reflect 2026 tax year. Tax estimates are for informational purposes only — not tax advice. Consult a tax professional for your specific situation.