Illinois / Wisconsin tax reciprocity
Each pair below is taxed by the RESIDENCE state, not the work state — the work state agrees not to withhold. Figures are illustrative, on a $75,000 salary.
Who taxes you, and what to file
The certificate goes to your employer in the state you work in. Figures are state income tax on $75,000, single, no dependents.
| Work in | Live in | Certificate to file | Tax under reciprocity | If the work state taxed you |
|---|---|---|---|---|
| Illinois | Wisconsin | IL-W-5-NR | $2,944 | $3,568 |
| Wisconsin | Illinois | W-220 | $3,568 | $2,944 |
The last column is hypothetical — what the work state would take with no agreement in place. It is not a second bill.
Does this cancel the local city or county tax?
Reciprocity is a state income tax concept. A local wage tax is a separate levy and can survive it.
- Working in Illinois
- Publication 130 does not address local wage taxes either way; Illinois has no state-wide local income tax for it to address.
Sources
- Illinois: Illinois Dept. of Revenue — Publication 130 (February 2026) — https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/pubs/documents/pub-130.pdf
- Wisconsin: Wisconsin Dept. of Revenue — Publication 121, Reciprocity (01/26) — https://www.revenue.wi.gov/DOR%20Publications/pb121.pdf
Run your own Illinois / Wisconsin numbers
Opens on work in Illinois, live in Wisconsin. Change the salary, either state, or filing status below.
Illinois / Wisconsin: common questions
Does Illinois tax Wisconsin residents who work there?
No. Illinois does not withhold its state income tax from a Wisconsin resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Wisconsin instead. File IL-W-5-NR with your Illinois employer to stop the withholding. Source: Illinois Dept. of Revenue — Publication 130 (February 2026).
Does Wisconsin tax Illinois residents who work there?
No. Wisconsin does not withhold its state income tax from an Illinois resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Illinois instead. File W-220 with your Wisconsin employer to stop the withholding. Source: Wisconsin Dept. of Revenue — Publication 121, Reciprocity (01/26).
Does reciprocity also cancel the local city or county tax?
Not necessarily — reciprocity is a state income tax concept, and a local wage tax is a separate levy that can survive it. Illinois: Publication 130 does not address local wage taxes either way; Illinois has no state-wide local income tax for it to address.
Does reciprocity cover self-employment or 1099 income?
No. Reciprocity covers employee compensation only, and the scope is set by each state's own materials rather than by a common rule — covers salaries, wages, tips and other employee compensation only. Self-employment income, rental income, gambling winnings and pass-through income are outside it, and may still require a nonresident return in the work state.
Other pairs involving these states
See all 32 state reciprocity pairs →