The income tax rate in Illinois is 4.95%, after an increase from 3.75% in 2017. Illinois also has higher-than-average sales taxes and property taxes. For tax year 2024, estates worth less than $4 million are exempt. Estates over that amount must file an Illinois estate tax return and face tax rates up to 16%.
Federal Married (separate) Filer Tax Tables
Among the most important items that are taxable federally but not in Illinois are retirement and illinois income tax rate Social Security income, as well as distributions from a 529 college savings plan. Food, drugs and medical appliances are all subject to a statewide tax rate of 1% of purchase price, in addition to local taxes of up to 1.25%, for a total tax of up to 2.25%. There are some food items that don’t count as a qualifying food. For example, candy and soda are generally subject to the higher “general merchandise” rate of 6.25%, but any candy containing flour is not, for sales tax purposes, classified as candy. Illinois has a flat income tax that features a 4.95% rate. This means that no matter how much money you make, you pay that same rate.
- Here are some key tax reduction programs in Illinois, and how to qualify.
- There are three types of residency statuses when it comes to Illinois state tax.
- Income from Illinois sources if your adjusted gross income is higher than your Illinois exemption allowance.
- In addition, Illinois has what is called an exemption allowance, which is a set amount that most people who earned a paycheck can knock off their taxable income.
- The 2.11% effective property tax rate in Illinois is second-highest in the nation, behind only New Jersey.
- Qualifying deductions might include an itemized deduction, the Illinois standard deduction, exemptions for dependants, business expenses, etc.
Federal Widower Filer Tax Tables
Let us know in a single click, and we’ll fix it as soon as possible. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of Accounts Receivable Outsourcing the tax data we present. There are three types of residency statuses when it comes to Illinois state tax. They determine what portion of your income the state will tax.
- The cigarette excise tax in Illinois is $2.98 per pack of 20.
- This tool is freely available and is designed to help you accurately estimate your 2025 tax return.
- The telecommunications tax is a tax on services including home phone lines, cell phones, television service and internet.
- Illinois applies per-gallon alcohol excise taxes based on the alcohol content of the beverage being sold.
Illinois exemption allowance
Sales and property taxes in Illinois are among the highest in the nation. Unlike the federal government and many other states, Illinois does not have tax brackets that impose higher rates on people who earn more. The general merchandise sales tax applies to almost all other Online Accounting products purchased for use in Illinois. However most areas have additional local taxes between 0% and 5.25%.
Illinois Standard Deductions & Personal Exemption Amounts
These reduce a taxpayer’s total tax bill by some amount, which is in contrast to tax deductions, which only reduce a taxpayer’s taxable income. If you paid $1,000 in property taxes in 2024, you could claim a credit of $50 on your income tax return, which equates to $50 less that you end up paying in taxes. Illinois has a flat income tax rate which applies to both single and joint filers. The Federal Income Tax, in contrast to the Illinois income tax, has multiple tax brackets with varied bracket width for single or joint filers. The state of Illinois has a flat income tax, which means that everyone, regardless of income, is taxed at the same rate. That makes it relatively easy to predict the income tax you will have to pay.
