On July 6, 2017, Illinois legislation was passed to increase the state individual income tax rate from 3.75% to 4.95% effective July 1, 2017. Prior to the passage of the new income tax rate, the University of Illinois withheld at the 3.75% rate as required. The new 4.95% withholding rate will be implemented with payrolls paid on or after July 13, 2017. Due to the passage of the increased rate after the July 1, 2017, effective date, you may owe additional income tax next year when you file your 2017 Illinois individual income tax return. 

To see how this change affects your state income tax withholding and your net pay, you can use the Monthly Net Pay Calculator and Bi-Weekly Net Pay Calculator found on the Payroll and Benefits web page.

If you have questions about the Illinois state income tax withholding change, please contact the University Payroll & Benefits Customer Service Center:

• Urbana:            217-265-6363
• Chicago:           312-996-7200
• Springfield:       217-206-7144
• Email:               payinq@uillinois.edu

Jim Davito

Executive Director, University Payroll and Benefits