Your property tax rate will depend on your home’s “equalized assessed value” and the demands of your local taxing district. Usually, it will sit somewhere around two percent, almost double the national assets = liabilities + equity average. In most cases, Illinois’ state sales and use tax rate is 6.25 percent, with Illinois residents paying up to 11 percent when some local districts and counties add extra taxes.
Revoke, suspend, or hold your business certificate or professional license
However, the lack of tax brackets means the system is not progressive, so low-income residents pay the same rate as high earners. This can be seen as unfair by some, especially when combined with Illinois’s high property and sales taxes. Illinois residents and non-residents earning income in the state must file an Illinois income tax return if their income exceeds the threshold based on filing status and personal exemption. Taxpayers use the IL-1040 form, which requires documentation such as W-2s and 1099s. The deadline aligns with the federal tax deadline, typically April 15th. A six-month extension is available, but taxes owed must still be paid by the original deadline to avoid interest.
Original return
According to the Tax Foundation, the average effective property tax rate in Illinois is 1.83%, which is one of the highest rates in the country. Tax what is illinois state tax brackets are ranges of income that are taxed at specific rates. In Illinois, these brackets categorize taxpayers according to their income levels, which ultimately determines the percentage of tax owed to the state. By embedding key rates, worked examples, recapitulation by tax type, and limiting external links to essential official IDOR pages, this guide keeps the reader engaged and informed without needing to click away. Want worked examples specific to Chicago, taxable liability calculators, or breakdowns for business income apportionment?
Retirement Savings
Pay electronically via the MyTax Illinois payment portal, including estimated payments and balance-due. In addition to income tax, you’ll also pay FICA taxes, which include Social AI in Accounting Security (6.2%) and Medicare (1.45%) on your earnings. If you need to correct or change your return after it has been filed, you must file Form IL-1120-X, Amended Corporation Income and Replacement Tax Return.
Exemptions
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. Additionally, e-filing can expedite refunds, as electronic submissions are processed more quickly by the Illinois Department of Revenue. Many e-filing services also provide built-in error-checking features, which can minimize mistakes and reduce the risk of audits. Additionally, understanding the differences in tax obligations for different business structures (e.g., LLCs, S-Corps, C-Corps) is necessary for optimizing tax strategies. Understanding these brackets is crucial for effective financial planning and ensuring compliance with state tax laws.
The same items of general merchandise reported on Line 4a of Forms ST‑1 and ST‑2 that are subject to state sales tax are also subject to the locally imposed sales tax. The same items of general merchandise reported on Line 4a of Forms ST-1 and ST-2 that are subject to State sales tax are also subject to the locally imposed sales tax. The calculator will automatically estimate your take-home pay after federal taxes, Illinois state taxes, Social Security, and Medicare deductions.
For precise tax calculations or financial advice, please consult with a qualified tax professional or financial advisor familiar with Illinois tax laws. The calculator primarily focuses on federal and state-level taxes. Some localities in Illinois may have additional local income taxes that would need to be considered separately. Automatic extension payment — We grant an automatic six-month extension of time to file your return.
- You must complete Form IL-505-I, Automatic Extension Payment for Individuals, if you choose to pay by check or money order, and mail it with your extension payment.
- Illinois has no local wage income tax; leave Local Taxes off unless modeling a custom scenario.
- The base income earned in Illinois or while a resident of Illinois is then reduced by the number of federally claimed exemptions and any additional exemptions.
- So if you live in the Prairie State and are thinking about estate planning, you should learn about this all-important tax law.
- Next, taxpayers can choose to file their taxes online, via mail, or with the help of a tax professional.
Illinois Income Tax: Rates, Calculations, and Filing Guide
It varies by location, but is generally about 7% of the price of service. The Earned Income Tax Credit is currently 20% of the federal credit by the same name. For tax year 2024, the maximum state credit a person can claim is $1,566. The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses. One “food” that doesn’t qualify for an exemption is alcohol, which is taxed differently between types.
From just $107.88 $24.99 for Kiplinger Personal Finance
While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. Many fees apply to a property purchase in any state, and in Illinois specifically, things can get slightly confusing – as there’s no set rate for property tax. For official forms and instructions, visit the Illinois Department of Revenue website, which provides up-to-date resources and guidance for taxpayers. While some neighboring states have recently changed their tax systems—such as Indiana lowering its flat rate to 3% and Iowa moving to a flat rate of 3.8%—Illinois has chosen to keep its approach steady. This consistency is important for residents, employers, and anyone considering a move to Illinois, as it provides predictability in financial planning.