Southern Wisconsin into Chicago
Live in Wisconsin, work in Illinois (2026)
Whether the two states have a reciprocity agreement, which form stops the withholding, and what your paycheck actually looks like after both states and any local tax have taken their share.
Is there a reciprocity agreement?
Yes. Illinois and Wisconsin have a reciprocity agreement, so Illinois takes $0 from a Wisconsin resident. File IL Form IL-W-5-NR with your employer. Chicago levies no city income tax either, so your total local tax is $0, and the commute changes nothing about your take-home.
Commuting from southern Wisconsin into the Chicago area is about as clean as interstate tax gets, and the reason is that Illinois has almost nothing to charge you with. The two states have a reciprocity agreement, so Illinois does not tax your wages: file Form IL Form IL-W-5-NR with your employer and Illinois withholding never begins. Illinois takes $0. Then comes the part that surprises people who have commuted into New York or Philadelphia. Illinois has no local income tax. Not in Chicago, not anywhere in the state. There is no city wage tax waiting behind the state agreement to catch you, which is exactly what happens to a New Jersey resident working in Philadelphia. Your entire tax bill is Wisconsin's: $4,465 in state tax at $100,000, for a take-home of $74,715, which is the same $74,715 you would keep working in Milwaukee. Nothing about the border changes what you owe.
At $100,000 single filer, against working at home in Wisconsin
This commute changes nothing about your take-home. You keep $74,715 either way.
Computed from the tax engine with 2026federal brackets, FICA, both states' income tax, and any local tax at either end. Standard deduction, no pre-tax contributions.
Who taxes you, and how much?
Single filer at $100,000, 2026 rules.
| Tax | Amount |
|---|---|
| Illinois income tax (work state) | $0 |
| Wisconsin income tax (resident state) | $4,465 |
| Combined state income tax | $4,465 |
How the Wisconsin and Illinois rule works
Illinois maintains reciprocity with exactly four states: Iowa, Kentucky, Michigan and Wisconsin. Indiana is not among them, which catches people who assume that sharing a border is enough. The certificate is Form IL Form IL-W-5-NR, filed with your Illinois employer, and it is what stops Illinois deducting tax at source. Without it you will be filing an Illinois return to recover money you never owed. One historical note is worth carrying, because stale advice about it is everywhere: Minnesota and Wisconsin used to have an agreement and it ended for tax years beginning in 2010. A Wisconsin resident working in Minnesota today uses the credit for tax paid to another state, not reciprocity. The Illinois agreement is alive and well; the Minnesota one is not. The agreement also covers wages only, so a Wisconsin resident with self-employment income sourced to Illinois is outside it and may owe Illinois on that income.
What this estimate covers
These figures apply 2026 federal brackets after the standard deduction, FICA, Wisconsin's income tax, Illinois's income tax where the agreement does not remove it, and the local tax at each end of the commute. State-administered payroll programs such as disability and paid family leave follow the work state, so where Illinois runs them they come out of your check on Illinois's schedule rather than Wisconsin's. They assume every workday is spent in Illinois and all of your wages are earned there.
One limit is worth naming. A split week, with some days worked from home, is not modelled: the credit, the local tax and the work-state payroll programs would each be apportioned across the two states, and this estimate treats the whole year as Illinois work.
Living in Wisconsin and working in Illinois: FAQ
Does Illinois tax Wisconsin residents?
Do I pay a Chicago city income tax?
Which form stops Illinois withholding?
Which states does Illinois have agreements with?
Didn't Wisconsin have an agreement with Minnesota too?
What is my take-home?
This estimate is for planning purposes only and does not constitute tax or financial advice. Actual paycheck withholding depends on your employer's payroll system, custom W-4 elections, additional income, and personal tax situation. For specific tax-planning decisions, consult a licensed CPA or tax professional. Cross-state estimates additionally assume all wages are earned in the work state and exclude any apportionment of remote workdays.
See also
Reviewed
How This Page Is Reviewed
The Wisconsin to Illinois commute rule is taken from each state's own reciprocity guidance and withholding forms, and is reviewed against those primary sources before each tax-year update. Local tax figures come from the municipal research files behind the city pages.
Reviewed by
PaycheckCalc Research Desk
Last reviewed
2026-07-12