Last updated: September 23, 2026
The Illinois vs Wisconsin minimum wage gap is one of the widest between any two neighboring states. Illinois requires $15.00 an hour. Wisconsin requires $7.25. That’s a short drive up I-94 for the same job at roughly half the legal floor.
If you only operate in one state, that’s trivia. However, if you have locations, crews, or delivery routes on both sides of the line, it decides what you owe for every hour worked. Here’s the full side-by-side for 2026, including the Chicago and Cook County rates, tipped wages, and youth rates. Every number comes from the state or local agency that sets it, or from reporting on those agencies’ announcements.
The short version
Illinois’s minimum wage is more than double Wisconsin’s, and the tipped wage gap is even wider.
- Illinois: $15.00 an hour, $9.00 for tipped employees. Chicago and suburban Cook County are higher.
- Wisconsin: $7.25 an hour, $2.33 for tipped employees. No local minimum wages.
- The rate that applies generally depends on where the work is done, not where the employee lives.
Illinois vs Wisconsin Minimum Wage at a Glance
Here’s the short answer, side by side.
| Illinois | Wisconsin | |
|---|---|---|
| Standard minimum wage | $15.00 | $7.25 |
| Tipped employee cash wage | $9.00 | $2.33 |
| Youth or new-worker rate | $13.00 (under 18, fewer than 650 hours a year) | $5.90 opportunity wage (under 20, first 90 days) |
| Higher local rates | Chicago $17.05; suburban Cook County $15.40 | None |
| Last statewide change | January 1, 2025 | July 24, 2009 |
| Overtime | 1.5x after 40 hours a week | 1.5x after 40 hours a week |
In the Illinois vs Wisconsin minimum wage comparison, neither state has a statewide increase scheduled right now. Chicago and Cook County, on the other hand, adjust every July 1.
Illinois: $15.00 Statewide
Illinois reached $15.00 on January 1, 2025, the final step of the phase-in passed in 2019. According to the Illinois Department of Labor’s rate schedule, the 2025 rates are $15.00 standard, $9.00 for tipped employees, and $13.00 for youth. Those rates carry into 2026.
A few details matter for payroll setup:
- Youth rate: $13.00 applies only to workers under 18 who work fewer than 650 hours in a calendar year. After 650 hours, the full $15.00 applies.
- Tipped employees: the $9.00 cash wage is 60% of the minimum. If tips don’t bring the employee to $15.00, you make up the difference.
- Training rate: Illinois also allows 50 cents less for adult, non-tipped employees during their first 90 days. Confirm eligibility before using it.
Chicago and Cook County Pay More
Illinois lets local governments go higher, and two big ones do. As reported by WTTW, Chicago’s minimum wage rose to $17.05 on July 1, 2026, for employers with four or more workers. The city’s tipped wage rose to $12.96. Chicago had been phasing out its tip credit, but it paused that schedule, so the tipped rate holds until a scheduled increase in 2028.
Chicago’s rule also reaches employers based outside the city. It covers employees who work at least two hours inside city limits in any two-week period. That includes compensated travel like deliveries and sales calls, but not commuting. So a suburban crew that works a few jobs in the city owes Chicago’s rate for those hours.
Suburban Cook County rose to $15.40 on July 1, 2026, with a $9.25 tipped wage. Some suburbs have opted out of the county ordinance, so check your specific town. Also worth knowing: Lake County, where our Mundelein office is, follows the $15.00 state rate.
Wisconsin: $7.25, Plus the Opportunity Wage
Wisconsin’s minimum wage matches the federal rate and hasn’t changed since July 24, 2009. According to Wisconsin DWD, the current rates are:
- Adults and minors: $7.25
- Opportunity employees: $5.90 for workers under 20, during their first 90 consecutive calendar days with an employer
- Tipped employees: $2.33 cash wage, as long as tips bring them to $7.25 over the pay period
- Tipped opportunity employees: $2.13
Wisconsin state law also prevents cities and counties from setting their own minimum wages for private employers. So Milwaukee, Madison, and Grafton all follow the $7.25 state rate.
That said, the legal floor isn’t the going rate. In practice, many Wisconsin employers pay well above $7.25 just to compete for workers.
Tipped Employees: The Biggest Gap
For restaurants, salons, and bars, the tipped wage is where the Illinois vs Wisconsin minimum wage gap really shows. The difference is stark:
- Illinois requires a $9.00 cash wage, or $12.96 in Chicago.
- Wisconsin requires $2.33.
In both states, the employer must make up the difference if tips don’t reach the full minimum wage. That’s why accurate tip reporting matters on either side of the line. If tip reporting is already a headache, see how one Mundelein family restaurant fixed its tip-reporting problem.
Crews That Work in Both States
This is where the Illinois vs Wisconsin minimum wage difference causes the most mistakes. Minimum wage generally follows where the work is performed, not where the employee lives or where your office is.
For example, a Kenosha plumbing company that sends a tech to a job in Lake County owes Illinois’s $15.00 for those Illinois hours. If that job is in Chicago, then the Chicago rate applies once the tech crosses the two-hour threshold. In the other direction, an Illinois-based landscaper working in Wisconsin still has to meet Wisconsin’s floor there, though most already pay more.
Income tax is a separate question. Illinois and Wisconsin have a reciprocal agreement, so withholding generally follows the employee’s home state. As a result, an employee can be paid at Illinois’s wage floor while their withholding goes to Wisconsin. So your payroll setup has to handle both at once.
What the Illinois vs Wisconsin Minimum Wage Gap Costs
Here’s the math for one full-time employee at the legal minimum, 2,080 hours a year:
- Illinois at $15.00: $31,200
- Wisconsin at $7.25: $15,080
- Difference: $16,120 per year, before payroll taxes
In practice, the real gap is smaller, since few Wisconsin employers actually pay $7.25. Still, for businesses weighing where to add a location or staff a crew, the Illinois vs Wisconsin minimum wage difference is real money. So run the numbers with your actual wage rates, not just the legal floors.
What This Means for You
What this means for you: the Illinois vs Wisconsin minimum wage gap means you set pay rates by work location, not by employee. In your payroll system, that usually means a separate work location or pay code for Illinois, Chicago, Cook County, and Wisconsin hours. Then track where time is actually worked.
Also, post the right notices. Illinois, Chicago, Cook County, and Wisconsin each have their own minimum wage posters.
For the rest of the state-by-state picture, see our complete compliance guide and our breakdown of Wisconsin payroll tax requirements. And if you’re unsure who’s owed overtime at these rates, start with our guide to exempt vs. non-exempt employees.
Illinois vs Wisconsin Minimum Wage FAQ
What is the minimum wage in Illinois in 2026?
The Illinois minimum wage is $15.00 an hour. Tipped employees get $9.00, and workers under 18 who work fewer than 650 hours a year get $13.00. Chicago ($17.05) and suburban Cook County ($15.40) are higher as of July 1, 2026.
What is the minimum wage in Wisconsin?
Wisconsin’s minimum wage is $7.25 an hour, unchanged since 2009. Tipped employees can be paid $2.33, and workers under 20 can be paid a $5.90 opportunity wage for their first 90 consecutive days.
Which rate applies if an employee works in both states?
Generally, the rate for the place where the work is performed. Illinois hours get the Illinois rate, and Chicago hours get the Chicago rate once the employee works at least two hours in the city in a two-week period.
Does Milwaukee have its own minimum wage?
Not for private employers. Wisconsin law prevents local governments from setting their own minimum wages, so Milwaukee follows the $7.25 state rate.
Paying people on both sides of the line?
Payroll Freedom runs payroll for businesses with Illinois and Wisconsin employees from offices in Mundelein and Grafton. We set up work locations, local rates, and reciprocal withholding so every hour is paid right.
See Your Price → Request a MeetingThis article is provided for general informational purposes only and does not constitute legal, tax, or payroll advice. Minimum wage rates, local ordinances, and coverage rules change, and which rate applies depends on your specific facts. Before acting on anything you read here, please consult a qualified advisor, including, we hope, us. Reach out to Payroll Freedom for guidance specific to your business.
About the Author
Frank Fiore, CPA — President & Visionary, Payroll Freedom
Frank Fiore has spent 20+ years helping small business owners navigate payroll across state lines, including the wage and withholding rules that change at the border. Payroll Freedom serves clients from offices in Mundelein, IL and Grafton, WI.
