Illinois State Tax Brackets, Standard Deductions, Forms

The three categories are qualifying food and drugs, vehicles and general merchandise. When calculating your Illinois income tax, keep in mind that the Illinois state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions. Technically, you don’t have just one “tax bracket” – you pay all of the Illinois marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your Illinois tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. Find out about your state taxes—property taxes, tax rates and brackets, common forms, and much more.

• Illinois collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets.
• The general merchandise sales tax applies to almost all other products purchased for use in Illinois.
• Many states also offer credits for families with children, charitable contributions, and environmental initiatives, for example.
• While federal tax rates apply to every taxpayer, state income tax rates vary by state.
• But if you moved to another state during the year, lived in one state but worked in another, or have, say, income-producing rental properties in multiple states, you might need to file more than one.
• The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses.

Check with your state’s tax and revenue authority for further information. Illinois income tax is fairly simple since taxpayers pay the same rate regardless of filing of status or income level. Though it is simple, taxpayers with lower incomes pay a higher tax rate than they would in many other states. Illinois state taxes are high in some areas and low in others.

How do Illinois tax brackets work?

This site is a free public service not affiliated with the IRS or any governmental organization. The per gallon tax on gasoline is $0.454 (effective from July 1, 2023 through December 31, 2023). Localities can add as much as 4.75%, and the average combined rate is 8.82%, according to the Tax Foundation. The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States. What do The Rolling Stones, NFL star Tyreek Hill, and Maryland millionaires have in common? Here are some key tax reduction programs in Illinois, and how to qualify.

For IRS or Federal back taxes, access the tax forms here. In addition to the federal estate tax, with a top rate of 40 percent, some states levy an additional estate or inheritance tax. Qualified education expenses over $250 are eligible for a tax credit. The tax rates on this page apply to the 2020 tax season as Illinois hasn’t yet released its rates for the 2021 tax season. During the first year of the tax cycle, the property is assessed, reflecting the property value as of Jan. 1 of that year.

Illinois Sales Tax

The exemption for 2022 is as high as $4,850 for married couples filing jointly ($2,425 for single filers). Income tax is a tax that is imposed illinois income tax brackets on people and businesses based on the income or profits that they earned. The tax rates are broken down into groups called tax brackets.