illinois income tax brackets

The Illinois K-12 education expense credit can knock up to $750 off of your tax bill if you spent more than $250 on qualified education expenses. These expenses include tuition, book rentals and lab fees. Our partners cannot pay us to guarantee favorable reviews of their products or services. We believe everyone should be able to make financial decisions with confidence. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Our experts have been helping you master your money for over four decades.

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, but any candy containing flour is not, for sales tax purposes, classified as candy. State income tax return deadlines usually mirror the federal deadline, but exceptions exist. Residents of Virginia, for example, generally get until May 1 to file their state returns.

eFile your Illinois tax return now

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. For example, the Illinois Property Tax Credit is equal to 5% of Illinois property tax paid on a principal residence. If you paid $1,000 in property taxes in 2021, you could claim a credit of $50 on your income tax return, which equates to $50 less that you end up paying in taxes. The state of Illinois has a flat income tax, which means that everyone, regardless of income, is taxed at the same rate. That makes it relatively easy to predict the income tax you will have to pay.

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For states with progressive tax systems, note that the dollar amounts in the income brackets apply to single filers; in many states, the income brackets double for joint returns. And, as is the case for federal returns, the amount you’ll pay to your state is also a function of your filing status, whether you have dependents, and whether you qualify for tax deductions and credits. 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.

Income Exemption Allowance for Illinois

Illinois state offers a personal exemption and tax credits, such as the earned income tax credit, and education expense credit. You can use our Illinois Sales Tax Calculator to look up sales tax rates in Illinois by address / zip code. The calculator will show you the total sales tax amount, as well as the county, city, and special district tax rates in the selected location. Taxpayers whose federal adjusted gross income exceeds $250,000 ($500,000 for married couples filing jointly), are not eligible to claim this tax benefit. Illinois’ income tax is imposed on every individual, corporation, trust and estate earning or receiving income in the state. The tax is a flat percentage of a taxpayer’s federal adjusted gross income.

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. The Illinois Earned Income Tax Credit/Earned Income Credit is for working people with low to moderate income to help reduce the amount of tax they owe. The credit is refundable, which means it may result in a refund. You can only claim the Illinois EITC/EIC if you qualify for it on your federal income tax return and it’s worth 18% of your federal EITC/EIC. Illinois collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Unlike the Federal Income Tax, Illinois’ state income tax does not provide couples filing jointly with expanded income tax brackets.

e-Filing: Submit Your Illinois Tax Return Online

You can learn more about how the Illinois income tax compares to other states’ income taxes by visiting our map of income taxes by state. In Illinois, the average effective property tax rate is 2.23%, which is one of the highest rates in the country. However, Illinois offers property tax breaks for some retirees. Income tax rates might provide relief for people with higher incomes but could burden some taxpayers who earn less. If you would like additional elements added to our tools, please contact us.

illinois income tax brackets

While figuring out your Illinois state income tax rate may be straightforward, not everything tax-wise is. When you prepare your return on eFile.com this is all calculated for you. Below find links to other important Illinois income tax return information and other related features (e.g. tax extension, amendment, etc.). As tax rates increase or products are banned from sale, consumers and producers search for ways around these penalties and restrictions. On top of that state sales tax, local governments can impose their own sales taxes, which can add to the costs of purchases made in different jurisdictions. Bankrate’s editorial team writes on behalf of YOU — the reader.

The state income tax rates are 4.95%, and the sales tax rate is 1% for qualifying food drugs and medical appliances and 6.25% on general merchandise. State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet. How illinois income tax brackets large depends on the amount you earn, as well as where you live and work. Here’s how it works, and a list of state tax rates across the U.S. As of 2022, 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%.

illinois income tax brackets