Illinois Income Tax Calculator

Cook, Kane and Warren counties are home to the state’s highest combined sales tax rates of 11.50%, 11% and 11%, respectively. Paying your Illinois state income tax is a straightforward process. You can file your state income tax return electronically or by mail. Many taxpayers opt for electronic filing for convenience and faster processing times. Also, online tax filing software options like Beem are available for your use. Be sure to submit your payment and return by the tax deadline to avoid penalties.

Illinois Income Tax Returns

The latest available tax rates are for 2024, and the Illinois income tax bracketshave not been changed since 2021. Illinois does not tax either retirement and Social Security income, as well as distributions from a 529 college savings plan. So, you pay the Federal social security tax only and not the state tax on social security benefits. Discover Illinois’s individual income tax, which applies to both residents and non-residents of the state. The tax is calculated based on an individual’s federal-adjusted gross income and has a flat rate of 4.95%.

Calculate your take-home pay per paycheck for salary and hourly jobs after federal & Illinois taxes

In the absence of allowances, filers are required to enter annual dollar amounts for things like income tax credits, non-wage income, itemized and other deductions and total annual taxable wages. While the change is retroactive to January 1, 2021, New York’s individual income tax increase is notable as one of only two individual income tax rate increases implemented in the last year. As part of the FY 2022 Enacted Budget Bill, New York’s top marginal rate for individual income taxation increased from 8.2 percent to 10.9 percent.

Understanding your Illinois paycheck

Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. 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. Our Illinois mortgage rates guide has important information about mortgages in the Prairie State that will help make the process of getting a mortgage a bit easier – whether you’re looking to purchase a property or refinance. 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 state of Illinois collects 66.5 cents for every gallon of regular gasoline.
• Tax-Rates.org provides easy access to five of the most commonly used Illinois income tax forms, in downloadable PDF format.
• You might have elective deductions such as health insurance premiums and retirement contributions.
• Reviewing and updating your Form W-4 periodically is crucial, especially after significant life events like getting married, having a child, or buying a house.
• This page also provides Illinois income tax rates, Illinois sales tax rates and property tax rates.

The State of Illinois collects $7,379 in state and local tax collections per capita. Illinois has $13,094 in state and local debt per capita and has a 51 percent funded ratio of public pension plans. Illinois’s tax system ranks 37th overall on the 2025 State Tax Competitiveness Index. When these pensions eat up more property tax dollars, less funding is left for essential services such as schools – unless taxes are increased. State teachers’ Online Bookkeeping pension payments have grown 225% since 2000, now consuming 39 cents of every K-12 education dollar spent by the state in 2022.

• Instead, the form now focuses on your filing status, income, dependents, and any additional income or deductions you might have.
• For example, the top rate kicks in at $1 million or more in California (when the “millionaire’s tax” surcharge is included), as well as in New Jersey, New York, and the District of Columbia.
• When you prepare your return on eFile.com this is all calculated for you.
• Pending revenue triggers, the tax would eventually have been reduced to 2.5 percent, regardless of income level.
• This tax is a crucial component of the state’s revenue system, funding essential services like education, healthcare, and infrastructure.
• Some of the scheduled future rate reductions rely on tax triggers, where rate reductions will occur once certain revenue benchmarks are met.

Illinois Married (Joint) Filer Tax Tables

Each household would have to pay $38,813 to eliminate all state and local pension debt. This average pension debt is even higher in nine other large municipalities, highlighting the pervasiveness of the state’s pension crisis. When cities and towns face dangerously high pension QuickBooks costs, they are forced to raise property taxes to cover shortfalls on debt payments. As a result, residents pay more in taxes towards past government services but don’t see benefits from current government services. They are more likely to see cuts to services as the old pension debts consume the new taxes. This often forces low-income families out of home ownership, or out of the state altogether.

• The remaining rates were each reduced by 0.125 percentage points, except for the second-lowest rate, which was reduced by 0.025 percentage points.
• When filing an income tax return in Illinois, taxpayers begin with their federal taxable income.
• There are state-level exemptions for all types of filers and dependents.
• 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%.
• Illinois’ flat income tax rate means that every resident, regardless of income level, pays the same individual income tax rate of 4.95 percent.

More From iCalculator™

If you double-claim allowances while holding more than one job, you’ll owe more money at tax time. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.

For the tax year 2025, these adjustments ensure that the credit remains aligned with the current economic conditions, providing targeted support to eligible taxpayers. Understanding the latest EITC rates and thresholds is crucial for taxpayers who wish to maximize their potential credit and accurately plan their finances. The EITC can have a significant impact on a family’s annual budget, offering relief and illinois income tax rate financial stability to millions of Americans each year including those in Illinois. If you file your taxes as single, any earnings you make in excess of $200,000 will be subject to an additional 0.9% Medicare tax, which is not matched by your employer. Joint filers making over $250,000, and married individuals with more than $125,000 filing separately, also pay the Medicare surtax.

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