Does Illinois tax Social Security?
Does not tax Social Security
No. Illinois lets you subtract the Social Security that is taxed on your federal return.
What the Illinois Department of Revenue says
We do not paraphrase the rule from memory. This is the state's own wording, copied from the page linked below it:
“You may subtract the amount of federally taxed Social Security and retirement income included in your adjusted gross income on Form IL-1040, Line 1, that you received from”
Federal tax is a separate question
Even though Illinois does not tax it, the IRS can still tax part of your Social Security on your federal return. Whether it does depends on your other income. Our taxable Social Security calculator follows the IRS worksheet line by line, and this guide explains the rule.
You can ask Social Security to withhold federal tax from each payment. Withholding for Illinois state tax, if you need it, is arranged with the state, not with Social Security. State rules change with new laws, so check with the Illinois Department of Revenue before you file.
Other states where the answer is “does not tax Social Security”
Check our work
The answer above comes from this page. Follow the link and compare.
- Social Security benefits and certain retirement plansIllinois Department of Revenue. Read on November 12, 2026.