Illinois Updates the Personal Exemption Allowance

September 14, 2018

The Illinois Department of Revenue issued revised Illinois Withholding Tables. Employers and payers are encouraged to review their current withholdings.

Illinois Department of Revenue (IDOR) has recently issued a revised Booklet IL-700-T (Illinois Withholding Tables).

2018 Personal Exemption Allowance

The wage bracket withholding tables and automated payroll method have been updated to reflect an increase in the personal exemption allowance from $2,000 to $2,225.

The IDOR says that this is a small change that may result in 2018 withholding to date being slightly more than what is required, and a small decrease in the amount of Illinois income tax required to be withheld for the rest of the year. Employers and payers should adjust their withholding amounts based on the new personal exemption amount.

The Illinois Income Tax rate for individuals remains at 4.95%.

Reminder for Current Withholding

The IRS and the IDOR recommend taxpayers review their current withholding to ensure you are not under-withheld for 2018.  You should specifically review if you:

  • Are a two-income family.
  • Have two or more jobs at the same time or only work part of the year.
  • Claim credits like the child tax credit.
  • Have dependents age 17 or older.
  • Itemized deductions in 2017.
  • Have high income or a complex tax return.
  • Have a large tax refund or tax bill for 2017.


Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.