Live in Iowa, work in Illinois
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: $3,148 a year
Living in Iowa and working in Illinois, you'd pay about $3,148 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.
State tax at different salaries
| Wages | To IL | To IA | Total | If you worked in IA |
|---|---|---|---|---|
| $50,000 | $0 | $1,248 | $1,248 | $1,248 |
| $75,000 | $0 | $2,198 | $2,198 | $2,198 |
| $100,000 | $0 | $3,148 | $3,148 | $3,148 |
| $150,000 | $0 | $5,048 | $5,048 | $5,048 |
| $250,000 | $0 | $8,848 | $8,848 | $8,848 |
Single filer, all wages earned in Illinois, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Reciprocity: IA residents working in IL are exempt from IL tax on wages; file Form IL-W-5-NR with employer.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Iowa: School district income surtax on residents only (percentage of state tax); does not affect nonresident commuters.
Frequently asked questions
Do I pay Illinois income tax if I live in Iowa?
No. Under the reciprocity agreement you pay only Iowa. IA residents working in IL are exempt from IL tax on wages; file Form IL-W-5-NR with employer.
Do I have to file taxes in both Iowa and Illinois?
Usually you file only one state return (a resident return in Iowa), 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 Iowa taxes your wages: about $3,148 on $100,000.
Related
- Live in Illinois, work in Iowa
- Moving from Iowa to Illinois
- Moving from Illinois to Iowa
- Live in Iowa, work in Minnesota
- Live in Iowa, work in Missouri
- Live in Iowa, work in Nebraska
- Live in Iowa, work in South Dakota
- Live in Iowa, work in Wisconsin
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.