Illinois Income Tax Calculator

Illinois collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Unlike the Federal Income Tax, Illinois’ state income tax does not provide couples filing jointly with expanded income tax brackets. Married Filing Jointly is the filing type used by taxpayers who are legally married (including common law marriage) and file a combined joint income tax return rather than two individual income tax returns.

Unlike the federal government and many other states, Illinois does not have tax brackets that impose higher rates on people who earn more. Corporate taxpayers did not escape from Byrd Rule constraints as they also faced temporary provisions and phaseouts. The amortization of research and development expenses (which requires companies to spread deductions out over several years instead of taking them immediately) took effect in 2022. The policy was never intended to take effect but was included in the TCJA as a revenue raiser within the budget window.

The Illinois Income Tax

A common piece of folk wisdom says that politicians can only see as far as their next election. That might be slightly exaggerated, but regular elections create incentives to deliver large short-term benefits rather than steady long-term benefits. The TCJA was passed under a process known as reconciliation. Reconciliation means a bill cannot be filibustered in the Senate and can pass with a simple majority, rather than being subject to the 60-vote threshold.

The Illinois income tax was lowered from 5% to 3.75% in 2015. Previously, the tax rate was raised from 3% to 5% in early 2011 as part of a statewide plan to reduce deficits. If you expect to owe $500 or more on April 15th, you must pay your income tax to Illinois quarterly using Form IL-1040-ES. Qualifying deductions might include an itemized deduction, the Illinois standard deduction, exemptions for dependants, business expenses, etc. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.

New 2024 Tax Rates and Thresholds

Tax-Rates.org provides easy access to five of the most commonly used Illinois income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Illinois tax forms library or the ‘s tax forms page. Our partners cannot pay us to guarantee favorable reviews of their products or services.

The standard deduction, which Illinois does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. The 2.23% effective property tax rate in Illinois is second-highest in the nation, behind only New Jersey. That means the typical homeowner in the Prairie State pays 2.23% of their home value in property taxes. If your state tax witholdings are greater then the amount of income tax you owe the state of Illinois, you will receive an income tax refund check from the government to make up the difference.

What You Need To Know About Illinois State Taxes

In general, the rate ranges from 6.25% to over 8.50%, depending on where the vehicle is purchased. Owner-to-owner sales, however, are subject to a lower rate, which depends on the price of the vehicle and, in some situations, the illinois tax brackets model year. Illinois also accepts online payments of your tax debt with credit cards and debit cards, or through a bank transfer. There is, however, a convenience fee for the use of a credit or debit card when paying your taxes.

• For details on specific deductions available in Illinois, see the list of Illinois income tax deductions.
• The Illinois K-12 education expense credit can knock up to $750 off of your tax bill if you spent more than $250 on qualified education expenses.
• Similarly, to permanently increase economic output from individual tax changes, they would need to be permanent.
• The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Illinois’ and may have different rules.
• Single is the filing type used by all individual taxpayers who are not legally married, and who have no dependants for whom they are monetarily responsible.