Live in Illinois, Work in Washington: Which State Taxes Your Paycheck?
Answer
Illinois taxes the income and Washington cannot. Residency, not the location of the job, drives this answer: Illinois reaches all of a resident's income, and Washington has no personal income tax to apply to the part earned inside its borders.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Illinois reaches all of a resident's income, and Washington adds nothing on top.
What you file
- 1Resident return · Illinois
File a Illinois resident return reporting all of your income.
The two states, side by side
| Illinois | Washington | |
|---|---|---|
| Taxes wages | Yes — flat | No |
| Reciprocity partners | 4 (Form IL-W-5-NR) | None |
| Convenience rule | No | No |
| Nonresident return | Form IL-1040 with Schedule NR | Not applicable |
| Credit for other-state tax | Schedule CR | No income tax |
| Nonresident safe harbour | 30 days | Not applicable |
| Local income tax | No | No |
| Revenue department | Illinois Department of Revenue | Washington State Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Washington and working in Illinois gives:Work state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Illinois → WashingtonHome state only
- 1099 contractor: Illinois → WashingtonHome state only — estimated payments
- Moved mid-year: Illinois → WashingtonOne part-year return — the state you left
Other Illinois pairs
Questions people actually ask
I live in Illinois and work in Washington. Which state takes the tax out of my paycheck?
Illinois taxes the income and Washington cannot. Residency, not the location of the job, drives this answer: Illinois reaches all of a resident's income, and Washington has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
Illinois. Your employer should withhold Illinois tax rather than Washington tax on these wages. If a Washington line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Illinois and Washington rules on this page were last checked against Illinois Department of Revenue and Washington State Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Illinois Department of Revenue — individual income taxaccessed 2026-08-07
- Washington State Department of Revenue — individual income taxaccessed 2026-08-07