Illinois Minimum Wage 2026: $15.00 Statewide, $17.05 in Chicago
Illinois minimum wage is $15.00 per hour in 2026 with a $9.00 tipped cash wage and $13.00 youth rate; Chicago pays $17.05 and Cook County $15.40 from July 1, 2026, and no statewide increase is scheduled.
The Illinois minimum wage is $15.00 per hour for workers 18 and older, unchanged since January 1, 2025, when the state completed the schedule set by its 2019 law. Workers under 18 who work fewer than 650 hours in a year may be paid $13.00, and tipped employees receive a cash wage of $9.00, which is 60 percent of the minimum. Two local ordinances go higher: Chicago pays $17.05 and suburban Cook County pays $15.40 from July 1, 2026. Illinois has no scheduled statewide increase and no inflation indexing. See how Illinois compares in our minimum wage by state guide.
Current Illinois Minimum Wage
The Illinois Department of Labor sets the 2026 rate at "$15.00 per hour for workers 18 years of age and older." The Illinois Minimum Wage Law applies to employers with four or more employees, not counting the employer's parents, spouse, children or other immediate family members. Employers with fewer than four employees are still covered by the federal FLSA in most cases and must pay at least $7.25.
Illinois runs three statewide rates:
| Employee group | 2026 rate | Basis |
|---|---|---|
| Workers 18 and older | $15.00 | Illinois Minimum Wage Law |
| Workers under 18 working fewer than 650 hours per calendar year | $13.00 | Youth rate; once a minor passes 650 hours the adult rate applies |
| Tipped employees (cash wage) | $9.00 | 60 percent of the minimum wage |
Illinois also allows a training wage of 50 cents below the minimum for the first 90 days of employment for adults in new jobs, though the Department of Labor's current guidance should be checked before using it.
Illinois Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Notes |
|---|---|---|
| Federal minimum wage | $7.25 | Since 2009 |
| Illinois minimum wage | $15.00 | Since January 1, 2025 |
| Chicago minimum wage | $17.05 | From July 1, 2026, employers with four or more employees |
| Cook County minimum wage (suburban) | $15.40 | From July 1, 2026 |
Illinois matches Missouri at $15.00 and pays far more than its other neighbors: Iowa, Indiana, Kentucky and Wisconsin are all at $7.25. An employer with a Rockford office and a Beloit office across the Wisconsin line pays $15.00 on one side and $7.25 on the other.
Tipped Minimum Wage in Illinois
Illinois allows employers to pay tipped employees 60 percent of the minimum wage, so the cash wage is $9.00 per hour with a maximum tip credit of $6.00. The Department of Labor's rule is that "an employer where gratuities are paid to employee, may pay 60% of the minimum wage to its employees." For tipped minors on the youth rate, the cash wage is 60 percent of $13.00, or $7.80.
Tips plus the cash wage must equal at least $15.00 for every hour worked in the workweek, and the employer must make up any shortfall. Chicago is phasing out its tip credit entirely: the city's tipped cash wage rises each July 1 by 8 percent of the full minimum wage until it matches the standard rate in 2028, which is why Chicago's tipped wage of $12.96 is so much higher than the state's $9.00.
Illinois Minimum Wage Increase Schedule
The 2019 Lifting Up Illinois Working Families Act raised the rate from $8.25 to $15.00 over six years. The law contains no inflation indexing, so the rate stays at $15.00 until the General Assembly acts.
| Effective date | Minimum wage | Youth rate (under 18, under 650 hours) | Tipped cash wage |
|---|---|---|---|
| January 1, 2020 | $9.25 | $8.00 | $5.55 |
| July 1, 2020 | $10.00 | $8.00 | $6.00 |
| January 1, 2021 | $11.00 | $8.50 | $6.60 |
| January 1, 2022 | $12.00 | $9.25 | $7.20 |
| January 1, 2023 | $13.00 | $10.50 | $7.80 |
| January 1, 2024 | $14.00 | $12.00 | $8.40 |
| January 1, 2025 | $15.00 | $13.00 | $9.00 |
| January 1, 2026 | $15.00 | $13.00 | $9.00 |
| 2027 | No change scheduled | No change scheduled | No change scheduled |
Bills to index the rate or raise it further have been introduced but not passed. Employers in Chicago and Cook County should plan for local increases every July 1 instead.
Local Minimum Wages in Illinois
Illinois allows home rule municipalities and counties to set higher rates, and two do.
| Jurisdiction | Standard rate (from July 1, 2026) | Tipped cash wage | Notes |
|---|---|---|---|
| City of Chicago | $17.05 | $12.96 | Employers with four or more employees; youth workers now receive the full rate; adjusts each July 1 by CPI, capped at 2.5 percent |
| Cook County (suburban municipalities that have not opted out) | $15.40 | $9.25 | Adjusts each July 1; many suburbs opted out and use the state rate |
Chicago's rate applies to any employee who works at least two hours in a two-week period inside city limits, which captures delivery drivers and remote employees living in the city. Cook County's ordinance covers only municipalities that did not opt out; more than 100 suburbs did, so check the county's list for each work location. Everywhere else in Illinois uses the $15.00 state rate.
Who Is Covered and Who Is Exempt
The Illinois Minimum Wage Law covers employees of employers with four or more employees. Groups outside the standard rate include:
- Exempt executive, administrative and professional employees under the federal duties tests and the $684 weekly salary floor; Illinois has no higher state threshold. See exempt vs non-exempt employees.
- Workers under 18 working fewer than 650 hours in a calendar year, who may be paid $13.00.
- Outside salespeople, certain agricultural workers, and members of religious orders.
- Employees of employers with fewer than four employees, excluding family members, who fall under the FLSA.
- Students working at their own college or university and certain learners under Department of Labor licenses.
Illinois does not permit the federal $4.25 youth opportunity wage; the state youth rate of $13.00 is the floor for minors.
Overtime and the Minimum Wage
Illinois requires 1.5 times the regular rate for hours over 40 in a workweek. There is no daily overtime. Chicago and Cook County follow the same 40-hour rule at their higher rates. See overtime pay laws in the US for the details.
A minimum wage employee working 45 hours earns:
| Hours | Rate | Pay |
|---|---|---|
| 40 regular hours | $15.00 | $600.00 |
| 5 overtime hours | $22.50 | $112.50 |
| Weekly gross pay | $712.50 |
In Chicago the same week at $17.05 is $682.00 plus $127.88, or $809.88. Overtime for tipped staff is calculated on the full minimum wage, not the $9.00 cash wage. The overtime calculator handles both.
What a Minimum Wage Worker Earns in Illinois
| Period | Hours | State ($15.00) | Chicago ($17.05) |
|---|---|---|---|
| Week | 40 | $600.00 | $682.00 |
| Month (average) | 173.33 | $2,599.95 | $2,955.28 |
| Year | 2,080 | $31,200.00 | $35,464.00 |
Illinois has a flat state income tax, so take-home pay is lower than gross. See gross pay vs net pay for the deductions, and the salary to hourly calculator to compare an annual offer.
Employer Compliance Checklist
- Post the Illinois minimum wage notice and, where applicable, the Chicago Office of Labor Standards and Cook County notices.
- Pay $15.00 for every hour worked statewide, $17.05 in Chicago and $15.40 in covered Cook County suburbs, based on where the work is performed.
- Track hours for minors separately so the youth rate stops at 650 hours in a calendar year.
- Apply the 60 percent tipped cash wage of $9.00, or the higher Chicago figure, with weekly reconciliation and written notice.
- Calendar July 1 for Chicago and Cook County adjustments; the state rate has no scheduled change.
- Keep payroll records for at least three years; Illinois allows employees to recover unpaid wages plus 5 percent per month in damages, so a time card calculator check before payroll is worthwhile.
- Review the Illinois labor law guide for the One Day Rest in Seven Act, paid leave and pay frequency rules.
Frequently Asked Questions
What is the minimum wage in Illinois in 2026?
$15.00 per hour for workers 18 and older. Workers under 18 who work fewer than 650 hours a year may be paid $13.00, and tipped employees receive $9.00 in cash plus tips.
Is Illinois minimum wage going up in 2027?
No statewide increase is scheduled. Illinois reached the end of its 2019 schedule in 2025 and does not index the rate to inflation. Chicago and Cook County adjust their local rates every July 1.
What is the tipped minimum wage in Illinois?
$9.00 per hour, which is 60 percent of the minimum wage. In Chicago the tipped cash wage is $12.96 from July 1, 2026 as the city phases out its tip credit.
What is the minimum wage in Chicago?
$17.05 per hour from July 1, 2026 for employers with four or more employees. Youth workers in Chicago now receive the full rate.
What is the Cook County minimum wage?
$15.40 per hour from July 1, 2026, with a $9.25 tipped cash wage, in suburban municipalities that have not opted out of the county ordinance.
Is Illinois minimum wage $15?
Yes. The state rate reached $15.00 on January 1, 2025 and remains there in 2026.
What is the youth minimum wage in Illinois?
$13.00 per hour for workers under 18 who work fewer than 650 hours in a calendar year. Once a minor passes 650 hours, the $15.00 adult rate applies for the rest of the year.
Does the Illinois minimum wage apply to small businesses?
The state law covers employers with four or more employees, not counting immediate family. Smaller employers covered by the FLSA must pay at least $7.25.
Sources
- Illinois Department of Labor: Minimum Wage Law
- Chicago Office of Labor Standards: 2026 Minimum Wage Notice
- Cook County: Notice of Minimum Wage Ordinance Rates Effective July 1, 2026
- US Department of Labor: State Minimum Wage Laws
- US Department of Labor: Minimum Wages for Tipped Employees
Reviewed September 2026
Illinois has no scheduled statewide change, but Chicago and Cook County adjust every July 1. Confirm the current figures with the Illinois Department of Labor and the relevant local office before setting pay rates.
State, City and County Rates from One Timesheet
HiveDesk records where and when each employee works, so Illinois, Chicago and Cook County rates, youth hour limits and overtime are calculated from accurate data. $5/user/month, 14-day free trial.