Reciprocity state pair

Live in Illinois, work in Wisconsin

An eligible Illinois resident's Wisconsin W-2 wages are taxed by Illinois under reciprocity. Wisconsin withholding should stop after payroll receives W-220; other Wisconsin income is a separate filing question.

By Abu HasnatPage updated Nov 7, 2026Data: Illinois and Wisconsin revenue departments (methodology)

Choose your next step

Payroll starting point: Wisconsin W-220 reciprocity declaration (opens in new tab). Give W-220 to the Wisconsin employer, arrange Illinois withholding with IL-W-4 or check IL-1040-ES, and inspect the W-2 for any Wisconsin withholding that needs a 1NPR refund claim.

Official tax guidance for both states

Check withholding, filing requirements and current forms with each state's tax agency.

Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.

Before you use this estimate

This model assumes a full-year resident of Illinois, ordinary employee wages and all workdays physically in Wisconsin. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.

Wage-exemption conditions: IL residents working in WI exempt from WI tax on wages; file Form W-220 (Nonresident Employee's Withholding Reciprocity Declaration).

I live inI work inAnnual wages ($)Filing status

State income tax: $4,805 a year

Modeled annual state income tax for living in Illinois and working in Wisconsin: about $4,805 on $100,000 of wages.

Reciprocity agreement: covered employee wages are subject to state income tax only in your home state. Give your employer the work state's exemption form and arrange home-state withholding. County and city taxes require a separate check.

Conditions for this pair: IL residents working in WI exempt from WI tax on wages; file Form W-220 (Nonresident Employee's Withholding Reciprocity Declaration).

Tax guide and official sources: live in Illinois, work in Wisconsin

Official agency starting points: Illinois tax agency (opens in new tab) · Wisconsin tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.

Tax to Wisconsin

nonresident

Tax to Illinois

$4,805

resident

Total state tax

$4,805

Typical state returns

This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.

How this $100,000 estimate adds up

These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.

Modeled state income tax for Illinois residence and Wisconsin work
Step	Wisconsin work state	Illinois home state
Tax before the modeled other-state credit	$0	$4,805
Modeled other-state credit subtracted	$0	$0
Tax after that credit	$0	$4,805

Total: $0 + $4,805 = $4,805 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.

No other-state credit is subtracted in this selected scenario. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.

State tax at different salaries

Wages	To WI	To IL	Modeled total	If 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.

From paycheck withholding to your returns

Withholding: Give your Wisconsin employer W-220, Nonresident Employee's Withholding Reciprocity Declaration, certifying eligible Illinois residence. The declaration authorizes payroll to stop Wisconsin withholding on covered compensation and remains effective while reciprocity applies. Ask the employer to withhold Illinois tax using IL-W-4. If it does not, check Illinois estimated payments using IL-1040-ES; the Wisconsin exemption does not prepay the Illinois bill.
Returns: Report the wages on the Illinois resident IL-1040 when required. If covered employee compensation is your only Wisconsin-source income and no Wisconsin tax was withheld, Wisconsin generally requires no income-tax return. If Wisconsin tax was withheld, file Wisconsin Form 1NPR to claim its refund. Other Wisconsin-source income may require 1NPR: Publication 121 describes a $2,000 Wisconsin gross-income filing threshold, excluding compensation exempt by reciprocity, for the return it covers. The January 2026 publication expressly concerns the 2025 return; use the annual forms and thresholds for the year being filed.
Credit or refund: Illinois Schedule CR instructions do not allow a credit for Wisconsin tax withheld or paid on covered reciprocal wages. Request the Wisconsin refund instead. Nonwage income or a dual-residence issue can change the credit and return analysis and is outside this wage example.

Worked example: $100,000 of wages

Single filer, full-year resident of Illinois, all work performed in Wisconsin, no other income, standard deductions and modeled personal exemptions. Covered wages are exempt from Wisconsin state income tax under wage reciprocity. Pay a modeled $4,805 to Illinois, total $4,805. This exemption is not an other-state tax credit.

Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. Local income taxes not included.

Remote-work and local exceptions

Full-year Illinois resident and domiciliary, ordinary W-2 employee compensation only, all workdays physically in Wisconsin, with no Wisconsin residence. Reciprocity does not cover self-employment, Wisconsin rental income, property gains or other nonemployee income. Illinois domicile alone is insufficient if you are not an Illinois income-tax resident. Keep residence and work records if those facts change; no part-year or hybrid allocation is calculated.

Lake County home, Kenosha workplace: a wages-only case

For an eligible full-year Illinois resident living in Lake County and working in Kenosha, compare the W-220 residence declaration with payroll's state-tax lines. If Wisconsin withholding is zero and those covered wages are the only Wisconsin income, the normal path is the Illinois resident return without a Wisconsin return. A Wisconsin rental or other nonexempt income changes that filing check. Keep the signed W-220, W-2 and Illinois withholding or estimated-payment records; use 1NPR if Wisconsin withheld tax in error.

Official forms and instructions

Source audit 2026-11-01. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.

Check your payslip and keep these records

Compare the payroll certificate you supplied with the state withholding on your next payslip. Check city, county and school-district entries separately; a state exemption does not settle local tax.
Keep your W-2 and other withholding statements, copies of payroll certificates, filed state and local returns, and proof of tax paid. A refund depends on actual withholding and the completed return, not this annual estimate.
Keep an actual work-location log, including home-working days. This calculator assumes ordinary employee wages, full-year residence in Illinois and every workday physically in Wisconsin.
If you moved during the year, have nonwage income or do not meet that scope, follow the pair's remote and local exceptions and the moving-year tax guide before using the amount as your own result. This tool does not calculate hybrid allocation, local credits or a personal refund.

What to do

Keep a record of the days you work in each state, especially if you sometimes work from home.

Frequently asked questions

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

If you qualify for the wage-reciprocity exemption, no Wisconsin state income tax on covered employee wages: under reciprocity Illinois taxes them. City and county taxes require a separate check. 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?

Report the wages on the Illinois resident IL-1040 when required. If covered employee compensation is your only Wisconsin-source income and no Wisconsin tax was withheld, Wisconsin generally requires no income-tax return. If Wisconsin tax was withheld, file Wisconsin Form 1NPR to claim its refund. Other Wisconsin-source income may require 1NPR: Publication 121 describes a $2,000 Wisconsin gross-income filing threshold, excluding compensation exempt by reciprocity, for the return it covers. The January 2026 publication expressly concerns the 2025 return; use the annual forms and thresholds for the year being filed.

Will I be taxed twice?

Not at the state level on covered wages: under reciprocity Illinois taxes them, about $4,805 on $100,000 in this model. The estimate includes resident county tax where modeled; other local taxes or credits are separate.

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