Illinois Income Tax Brackets for Tax Year 2024 Filed April 2025

Corporations in Illinois are taxed at a rate of 9.5% on their net income. For businesses, understanding tax implications can guide strategic decisions related to revenue and expenses. Overall, being informed about tax brackets empowers taxpayers to make better financial choices. 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%. For example, candy and soda are generally subject to the higher “general merchandise” rate of 6.25%, but any candy containing flour is normal balance not, for sales tax purposes, classified as candy. As simple as Illinois tries to make income tax, the state seems to take the opposite approach with sales taxes.

Do lottery winnings count as earned income for Social Security purposes?

You’re responsible for paying property taxes even if you don’t receive a bill. Contact your county treasurer immediately to request a duplicate bill, typically available for a $2 fee. Most counties now provide online portals where you can download your bill as a PDF. The standard payment schedule includes two installments due around June 1st and September 1st.

When are Illinois property tax bills due in 2025?

The design and symbolism of flags can reflect a place’s history, culture, and values, and can also have a significant impact on national identity and international relations. The taxes and costs in Chicago are not helping the city keep the Bears. If the team were to leave, they would be following a path well-worn by thousands of Illinoisans. If you have more than one job, you’ll need to split your allowances between your jobs. You can’t claim the same allowances with more than one employer in a single tax year.

Which states send more to the federal government than they receive?

• The Social Security component, officially called Old-Age, Survivors, and Disability Insurance, is withheld at a rate of 6.2% of wages.
• As a new year begins, taxpayers across the country are navigating a new round of state tax changes.
• Income earned above that threshold is no longer taxed for the program.
• Taxes, both income and sales, can significantly impact your lifestyle.
• Unlike some states that employ multiple tax brackets, Illinois only has one rate applicable to all income levels.
• Louisiana continues to have the highest combined state and average local sales tax rate among the states at 10.11 percent.

Illinois also has reciprocity with the neighboring states of Iowa, Kentucky, Michigan and Wisconsin, which means those states don’t tax Illinois residents who work within their borders. So if you live in Illinois and work in Iowa, Kentucky, Michigan or Wisconsin, you’ll pay tax to your home state. Our partners compensate us for advertisements that appear on our site. This compensation helps us provide tools and services – like free credit score access and monitoring. With the exception of mortgage, home equity and other home-lending products or services, partner compensation is one of several factors that may affect which products we highlight and where they appear on our site.

• Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower.
• These partnerships do not influence our opinions or recommendations.
• It is a different calculation, Luscombe said, than what’s used for the new deduction for seniors.
• File Form IL-1040 and pay any tax owed by April 15, 2026; extensions apply to filing only, not payments.
• Most people who e-file and choose direct deposit see their refund within 21 days of the IRS accepting their return, though that timeline can be longer in certain instances.
• Unlike residents in certain other states who must contend with city or county-level income taxes, Illinois state law does not permit municipalities or local jurisdictions to impose an income tax on wages.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

According to analysis by VisaVerge.com, the flat structure can make budgeting easier during expensive immigration periods like adjustment of status, H-1B extensions, or family reunification. The risk is that do-it-yourselfers — and even some tax preparers — might not realize that a new Schedule 1-A exists to claim the enhanced deduction for seniors, which was supported by AARP and others. Lawmakers Opening Entry should keep that reality in mind as they make changes to tax and economic policies. The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare.

IRS may not submit refund information early.4 Credit Karma is not a bank. Get your paychecks right by quickly calculating your employees’ payroll taxes, withholdings, and deductions. Every year, the Internal Revenue Service announces illinois income tax rate new tax brackets, tiers of income that are taxed at different rates under our nation’s progressive tax system. Understanding tax brackets is key to predicting how much tax you owe. Avoidance of sales tax is most likely to occur in areas where there is a significant difference between jurisdictions’ rates.