Illinois Form IL-W-4-NR – Nonresident Employee Withholding Certificate (2026)
Last reviewed: 2025-11-08
Use the Illinois Tax Form Calculator Form IL-W-4-NR: Nonresident Employee Withholding Certificate as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Illinois state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Form IL-W-4-NR is used by nonresident employees who earn income from work performed within Illinois. This form instructs the employer how much Illinois income tax to withhold from wages, commissions, or other Illinois-source payments. The tax rate is 4.95% for all employees, including nonresidents. Residents of states with reciprocity agreements—currently Iowa, Kentucky, Michigan, and Wisconsin—are generally exempt from Illinois withholding.
When to File Form IL-W-4-NR
File this form with your Illinois employer if you:
- Live outside Illinois but perform work physically within Illinois.
- Are an out-of-state resident with Illinois-source income (e.g., consultant, remote worker, contractor).
- Qualify for reciprocity and need to claim exemption from Illinois withholding.
How Illinois Nonresident Withholding Works
Illinois taxes income earned within the state regardless of residency. The employer calculates tax based on wages attributable to Illinois and applies the flat 4.95% rate unless an exemption applies. Employees can request additional withholding if they have other Illinois-source income or anticipate underpayment.
- Enter total Illinois-source wages on Line 1.
- Enter allowable nonresident exemptions on Line 2.
- Subtract Line 2 from Line 1 to get taxable Illinois wages (Line 3).
- Multiply Line 3 by 4.95% to calculate the required withholding (Line 4).
- Add any additional voluntary withholding (Line 5) if you wish to cover other tax obligations.
| 1 | Illinois-source wages | |
| 2 | Nonresident exemptions | |
| 3 | Taxable Illinois wages (Line 1 − Line 2) | |
| 4 | Illinois tax (4.95%) × Line 3 | |
| 5 | Additional voluntary withholding | |
| 6 | Total Illinois withholding (Line 4 + Line 5) |
Example
Example: Taylor lives in Indiana but works two days a week in Chicago. Taylor earns $40,000 annually, with $15,000 attributable to Illinois work. The Illinois withholding is $15,000 × 4.95% = $742.50. Because Indiana and Illinois have no reciprocity, Taylor’s employer must withhold Illinois tax on the Illinois portion of income.
Tips for Nonresident Employees
- Keep clear records showing how wages are allocated between states.
- If you live in Iowa, Kentucky, Michigan, or Wisconsin, you may claim exemption due to reciprocity.
- If you have multiple Illinois employers, submit a separate IL-W-4-NR to each.
- File Schedule NR with your Illinois return to report and reconcile nonresident income at year-end.
Employers use Form IL-W-4-NR to ensure compliance with Illinois withholding requirements under 35 ILCS 5/701 and corresponding administrative rules.
Last reviewed: 2025-11-08: If you believe this form requires an update, please contact us.
Related Forms and Resources
- Form IL-W-4 – Employee’s Illinois Withholding Allowance Certificate
- Schedule NR – Nonresident and Part-Year Resident
- Form IL-1040 – Individual Income Tax Return
- Illinois DOR – Form IL-W-4-NR Information
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Frequently Asked Questions
Do I need to file IL-1040-X if the IRS changes my income?
Yes. If the IRS adjusts your federal return and it affects Illinois tax, you must file IL-1040-X within 120 days of receiving the federal notice.
Are donations made through Schedule G-L tax-deductible?
Yes. Your Schedule G-L donations are eligible for a federal charitable deduction if you itemize on your federal Form 1040 Schedule A. Keep a copy of the filed schedule and any Lottery confirmation of your gift. The contribution will increase your Illinois payment or reduce your refund, but may lower your federal taxable income in the following year.
Changing jobs mid-year in IL
Update income/withholding and frequency; brackets are flat but credits/exemptions still matter.
Who must file Schedule FD?
You must file Schedule FD if you are a former Illinois resident who receives income (such as installment sale gains or deferred bonuses) sourced from Illinois that became taxable for federal purposes during 2026.
What documentation must accompany Schedule 1299-DA?
Attach copies of the other states’ filed tax returns, W-2s, or K-1s showing withholding and payments. Failure to attach proof can lead to denial of the credit. For convenience, you can track and upload copies directly through the MyTax Illinois portal.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.