Reciprocity state pair

Live in Illinois, work in Wisconsin

Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.

State income tax: $4,805 a year

Living in Illinois and working in Wisconsin, you'd pay about $4,805 in state income tax on $100,000 of wages.

Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.

Tax to Wisconsin
$0
nonresident
Tax to Illinois
$4,805
resident
Total state tax
$4,805
State returns to file
1

State tax at different salaries

WagesTo WITo ILTotalIf you worked in IL
$50,000$0$2,330$2,330$2,330
$75,000$0$3,568$3,568$3,568
$100,000$0$4,805$4,805$4,805
$150,000$0$7,280$7,280$7,280
$250,000$0$12,230$12,230$12,230

Single filer, all wages earned in Wisconsin, 2026 state tax rules, standard deductions. Local income taxes not included.

What to do

Frequently asked questions

Do I pay Wisconsin income tax if I live in Illinois?

No. Under the reciprocity agreement you pay only Illinois. IL residents working in WI exempt from WI tax on wages; file Form W-220 (Nonresident Employee's Withholding Reciprocity Declaration).

Do I have to file taxes in both Illinois and Wisconsin?

Usually you file only one state return (a resident return in Illinois), though some states still require a nonresident return to get a refund of any wrongly withheld tax.

Will I be taxed twice?

No. Under the reciprocity agreement only Illinois taxes your wages: about $4,805 on $100,000.

Related

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.