These reduce a taxpayer’s total tax bill by some amount, which is in contrast to tax deductions, which only reduce a taxpayer’s taxable income. If you paid $1,000 in property taxes in 2024, you could claim a credit of $50 on your income tax return, which equates to $50 less that you end up paying in taxes. Illinois has a flat income tax rate which applies to both single and joint filers. The Federal Income Tax, in contrast to the Illinois income tax, has multiple tax brackets with varied bracket width for single or joint filers. The state of Illinois has a flat income tax, which means that everyone, regardless of income, is taxed at the same rate. That illinois income tax rate makes it relatively easy to predict the income tax you will have to pay.
things to know about Illinois state tax
Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. Income from Illinois sources if your adjusted gross income is higher than your Illinois exemption allowance. Qualifying deductions might include an itemized deduction, the Illinois standard deduction, exemptions for dependants, business expenses, etc. 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 Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses.
Illinois: Federal EITC(Earned Income Tax Credits) Rates and Thresholds in 2024
If you have a dollar or $1 billion that’s subject to Illinois income tax, you owe 4.95% of that money to the state. The 2024 tax rates and thresholds for both the Illinois State Tax Tables and Federal Tax Tables are comprehensively integrated into the Illinois Tax Calculator for 2024. This tool is freely available and is designed to help you accurately estimate your 2025 tax return. Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.
Illinois Tax Tables 2024 – Tax Rates and Thresholds in Illinois
Sales and property taxes in Illinois are among the highest in the nation. Unlike the federal government and many other states, Illinois does not have tax brackets that impose higher rates on people who earn more. The general merchandise sales tax applies to almost all other products purchased for use in Illinois. However most areas have additional local taxes between 0% and 5.25%.
Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. 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 income summary 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.
Federal Married (separate) Filer Tax Tables
The Financial Forecasting For Startups income tax rate in Illinois is 4.95%, after an increase from 3.75% in 2017. Illinois also has higher-than-average sales taxes and property taxes. For tax year 2024, estates worth less than $4 million are exempt. Estates over that amount must file an Illinois estate tax return and face tax rates up to 16%.
- The telecommunications tax is a tax on services including home phone lines, cell phones, television service and internet.
- The cigarette excise tax in Illinois is $2.98 per pack of 20.
- There are some food items that don’t count as a qualifying food.
- Here are some key tax reduction programs in Illinois, and how to qualify.
- Income from Illinois sources if your adjusted gross income is higher than your Illinois exemption allowance.
Let us know in a single click, and we’ll fix it as soon as possible. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the tax data we present. There are three types of residency statuses when it comes to Illinois state tax. They determine what portion of your income the state will tax.
Illinois state income tax deductions and credits
Among the most important items that are taxable federally but not in Illinois are retirement and Social Security income, as well as distributions from a 529 college savings plan. 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%. 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 of 6.25%, but any candy containing flour is not, for sales tax purposes, classified as candy. Illinois has a flat income tax that features a 4.95% rate. This means that no matter how much money you make, you pay that same rate.