IL · Tax Year 2026
How Illinois taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Qualifying retirement income fully exempt
No general age requirement
Additional Notes
State has income tax but subtraction for qualifying retirement distributions
Does Illinois tax Social Security benefits?
No. Illinois does not tax Social Security retirement benefits.
Does Illinois tax pension income?
No. Illinois exempts pension income from state income tax.
Does Illinois tax 401(k) and IRA withdrawals?
No. Illinois does not tax qualifying 401(k) and IRA distributions.
Is Illinois a tax-friendly state for retirees?
Generally yes. Illinois exempts Social Security and offers exemptions for other retirement income, making it relatively favorable for retirees.
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Data Source
Official Illinois state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Related for Illinois
Data reflects tax year 2026 rules sourced from official Illinois state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.