Illinois and Wisconsin have reciprocity in some areas and not others. The clearest and most useful piece is income tax: since 1971, W-2 employees who live in one state and work in the other pay income tax only where they live. The two states also recognize each other’s driver’s licenses for visitors. Professional licensing runs field by field with no blanket rule, and concealed carry recognition goes only one way: Wisconsin honors Illinois permits, but Illinois honors no other state’s permits.
Income Tax Reciprocity for Cross-Border Workers
If you live in Illinois and work in Wisconsin, or live in Wisconsin and work in Illinois, you owe state income tax only to your home state. The agreement covers wages, salaries, commissions, and other compensation paid to employees for personal services.1Wisconsin Department of Revenue. Publication 121 Reciprocity It is one of only four such agreements Wisconsin maintains, alongside Indiana, Kentucky, and Michigan.
Reciprocity doesn’t happen automatically. You have to tell your employer to stop withholding tax for the work state.
- Wisconsin resident working in Illinois: file Form IL-W-5-NR, Employee’s Statement of Nonresidence in Illinois, with your Illinois employer.2Illinois Department of Revenue. IL-W-5-NR Employee’s Statement of Nonresidence in Illinois
- Illinois resident working in Wisconsin: file Form W-220, Nonresident Employee’s Withholding Reciprocity Declaration, with your Wisconsin employer.3Wisconsin State Legislature. Tax 2.02 Reciprocity
Skip the form and your employer withholds for the work state by default. You’d then have to file a nonresident return in that state to get the money back and fix your home state withholding.
What the Tax Agreement Doesn’t Cover
Self-employment income is outside the agreement. If you’re a freelancer, an independent contractor, a solo attorney, or an accountant billing clients across the border, you generally owe tax to the state where you perform the work. You can then claim a credit on your home state return for taxes paid to the other state, which avoids full double taxation but not the paperwork.3Wisconsin State Legislature. Tax 2.02 Reciprocity Lottery winnings are also excluded.
Driver’s Licenses
Both states recognize each other’s driver’s licenses for visitors, so you can drive across the border without any additional documentation. Relocating is different. New Wisconsin residents have 60 days after establishing residency to get a Wisconsin license, and commercial drivers have 30 days.4Wisconsin Department of Transportation. Change Your Out-of-State Driver License to Wisconsin’s New Illinois residents have 90 days.
One gap to know about: Wisconsin is not a member of the Driver License Compact, the interstate agreement most states use to share traffic violation and suspension information.5AAMVA. Driver License Compact Non-Resident Violator Compact Illinois is a member.6Justia Law. Illinois Code Chapter 625 – Article VII Driver License Compact Serious offenses like DUI convictions still get reported through national databases, and both states act on out-of-state violations, but routine infractions may not travel the way they would between two compact states.
Professional Licensing by Field
There is no blanket reciprocity for professional licenses. Each profession sets its own rules, and how easily you can move a license across the border depends entirely on your field.
Real Estate
Illinois has a written reciprocal agreement with Wisconsin. An active Wisconsin licensee can take the Illinois reciprocity examination and get an Illinois license without completing Illinois pre-license education.7Illinois Department of Financial and Professional Regulation. Reciprocity Application Going the other way, Wisconsin requires out-of-state salesperson applicants who held a license within the past two years to complete 13 hours of pre-license education and pass the Wisconsin state exam.8Wisconsin REALTORS Association. Wisconsin Pre-license Out-of-State Licensee Broker applicants take both the 13-hour sales course and a 6-hour broker course before sitting for both state exams.
Nursing
Wisconsin belongs to the Nurse Licensure Compact, so a nurse who declares Wisconsin as their primary residence can hold a multistate license valid in all compact states.9State of Wisconsin Department of Safety and Professional Services. Registered Nurse Illinois is not a member.10NCSBN. NLC States An Illinois RN license alone won’t let you practice in Wisconsin. If you move to Wisconsin, you can apply for licensure by endorsement to get a Wisconsin-specific license, and you’d need to declare Wisconsin as your primary state of residence to qualify for a multistate license. Wisconsin may require a board-approved refresher course if you haven’t practiced within the past five years.
Physicians
Both states are members of the Interstate Medical Licensure Compact, which gives eligible physicians an expedited pathway to licenses in multiple member states. The physician designates one state as the state of principal licensure and applies for licenses elsewhere through a streamlined procedure. This matters most for telemedicine and for physicians splitting time between Chicago and Milwaukee practices.
Certified Public Accountants
Both states have adopted interstate mobility under the Uniform Accountancy Act framework. A CPA with an active, unrestricted license in their home state can practice in the other state without a separate license or additional fees, but only at the level of services allowed in the home jurisdiction, and remains subject to the regulatory authority of the state where the work is performed.
Professional Engineers
Wisconsin allows licensed professional engineers from other states to apply for registration by reciprocity, as long as the home state’s requirements aren’t lower than Wisconsin’s. Applicants need to have passed both the NCEES Fundamentals of Engineering and Principles and Practice examinations and hold an active license in another state.11State of Wisconsin Department of Safety and Professional Services. Professional Engineer Using an NCEES Council Record makes the process considerably easier.
Attorneys
Neither state makes the other’s attorneys retake a bar exam, but both demand proof of active practice. Wisconsin allows attorneys admitted in any state to apply for admission based on proof of practice, requiring at least three years of substantial legal practice within the five years before applying.12Wisconsin State Legislature. Amendment to SCR 40.05 – Legal Competence Requirement Proof of Practice Elsewhere Illinois allows admission on motion for attorneys licensed at least three years who can document at least 1,000 hours per year of active legal practice for three of the preceding five years and who meet character and fitness requirements. Anyone who failed an Illinois bar exam within the past five years is ineligible for this route.13Illinois Courts. Rule 705 Admission on Motion
Teachers
Both states participate in the NASDTEC Interstate Agreement, which helps educators move between member states. It isn’t automatic reciprocity. A teacher who completed an approved preparation program or holds a valid license in one state can pursue licensure in the other, but additional coursework, assessments, or background checks may apply.14National Association of State Directors of Teacher Education and Certification. Interstate Agreement
Social Workers
No direct reciprocity agreement exists for social workers. Illinois offers a pathway through licensure by endorsement, and licensed clinical social workers with at least five years of experience face a simplified process requiring only certified verification of licensure.15Illinois Department of Financial and Professional Regulation. Instructions for Social Worker Licensure
Concealed Carry Runs One Way
Wisconsin honors Illinois concealed carry permits, along with permits from dozens of other states, so an Illinois resident with a valid permit can carry a concealed handgun in Wisconsin while following Wisconsin’s carry laws.16Wisconsin Department of Justice. CCW Reciprocity The permit holder must be at least 21 years old and not a Wisconsin resident.17Wisconsin State Legislature. Wisconsin Statutes 175.60 – License to Carry a Concealed Weapon
Illinois does not honor concealed carry permits from any other state, including Wisconsin. Carrying a concealed firearm in Illinois requires an Illinois Concealed Carry License.18Illinois General Assembly. 430 ILCS 66/40 There is a workaround for Wisconsin residents. The Illinois State Police has determined Wisconsin’s firearm laws are “substantially similar” to Illinois’s, which means Wisconsin residents can apply for an Illinois non-resident concealed carry license.19Illinois State Police. Concealed Carry License The non-resident application fee is $300, and applicants must complete 16 hours of firearms training, provide a notarized affidavit, and meet all other standard Illinois licensing qualifications.
If you move from Illinois to Wisconsin, your Illinois license may be honored temporarily while you’re still treated as a non-resident, but you’ll need a Wisconsin license once you establish residency.
How to Confirm Your Specific Situation
Reciprocity rules change, and the details that matter most tend to sit in administrative codes rather than headline statutes. For income tax, the Wisconsin Department of Revenue’s Publication 121 is the definitive reference on the Wisconsin side, and the Illinois Department of Revenue handles Illinois withholding. For professional licenses, the Illinois Department of Financial and Professional Regulation and the Wisconsin Department of Safety and Professional Services cover most licensed fields. For driver’s license transfers, use the Wisconsin DOT or the Illinois Secretary of State. For concealed carry, the Illinois State Police and the Wisconsin Department of Justice keep current reciprocity lists on their websites. On any of these sites, look for sections labeled “out-of-state applicants,” “endorsement,” or “reciprocity.”