Illinois Tax Calculator 2022-2023: Estimate Your Taxes

tax bracket illinois

Additionally, the revised statute for taxes on tobacco products takes effect and imposes a tax, equal to 43 percent of the cost price, on all tobacco products (unless taxed by another provision of the statute). Louisiana lawmakers repealed the state’s throwout rule, ending the taxation of so-called “nowhere income.” Now, Maine remains the only state that maintains this inefficient and uncompetitive tax. If this applies to you, you should be aware of Form IL-W-5-NR.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Prepare and e-File your Illinois Income Taxes here on together with your Federal Income Tax Return.

What You Need To Know About Illinois State Taxes

Yes, those little pieces of paper or electronic transactions that arrive every week or month, filling our pockets with the hard-earned fruits of our labor. Whether you work in Chicago, Rockford, or somewhere else, let’s take a look at how getting paid works here. The state of Illinois collects 39.2 cents for every gallon of regular gasoline. The diesel tax rate is also quite high at 46.7 cents per gallon. The Earned Income Tax Credit is currently 18% of the federal credit by the same name. The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses.

  • The tax rates are broken down into groups called tax brackets.
  • The state’s unemployment insurance tax administrative assessment for all experience-rated employers is set to expire in 2027.
  • This year, the tax brackets are shifting higher by about 5.4%.
  • The highest combined sales tax in Illinois is 10.75% which belongs to the cities of Berwyn and Cicero.

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, but any candy containing flour is 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. There are three rate structures depending on what you are buying. The three categories are qualifying food and drugs, vehicles and general merchandise.

All US Tax Tables

This codified a reduction that was triggered per conditions established in 2022 (House Bill 8). Find out about your state taxes—property taxes, tax rates and brackets, common forms, and much more. The Illinois marginal tax rate used in our example calculation above on this page is 4.95%. That is the tax rate applied to each additional dollar of taxable income you earn.

  • When filing an income tax return in Illinois, taxpayers begin with their federal adjusted gross income (AGI, or taxable income, is income minus certain deductions).
  • To this, however, can be added several additional tax changes adopted in 2023 with effective dates prior to 2024.
  • Qualified education expenses over $250 are eligible for a tax credit.
  • HB 1499, signed into law as PL 239, makes several notable property tax changes.
  • The law consolidated the state’s seven tax brackets for individual income into two and reduced the top marginal rate from 6.75 percent to 6.5 percent.
  • The IRS announced the higher limits for the federal income tax bracket and standard deductions in November.

The surtax rate (3 percent), which applies to corporate income over $50,000, remains unchanged. Property taxes are collected by local governments in Illinois and are usually based on the value of the property. Money that is collected from these taxes is often put back into local communities to help improve the schools, infrastructure, roads, and other community and public works projects. The property tax rates listed below are the average for properties in Illinois. Actual property taxes may vary depending on local geographic factors that affect the property values. The state income tax rate in Illinois is under 5% while federal income tax rates range from 10% to 37% depending on your income.

Sales Tax Rates(Updated January

Since Illinois is a flat tax rate state, the nominal or official tax rate equals the marginal tax rate. If you would like additional elements added to our tools, please contact us. You can claim 5% of the real estate tax you paid on your principal residence on your Illinois tax return. You must own and live in the residence, and your income must be below $500,000 (married filing jointly) or $250,000 (all other filers) to be eligible for this tax credit. Illinois state offers a personal exemption and tax credits, such as the earned income tax credit, and education expense credit. 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.

Every individual taxpayer is therefore in the same bracket regardless of filing status and amount. Married couples filing jointly with an adjusted gross income over $500,000, and all other filing statuses with AGI over $250,000, can’t claim the education expense credit. Illinois does not have a standard or itemized deduction; instead, it offers a personal exemption of $2,375 for the 2021 illinois income tax rate tax year. For married individuals over 65 (or legally blind) that filed tax returns jointly, you’re allowed an additional $1,000. The state of Illinois has one flat individual income tax rate of 4.95%. Remember that Illinois may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Illinois income tax return.

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