Illinois

Sales Tax

  • Statewide: 6.25%
  • Counties can levy an additional sales tax of no more than 5.24%.
  • Current average sales tax (with local taxes included): 8.17%
  • Common Exceptions at State Level:
    • Prescription and Over-the-Counter Medicine: 1%
    • Unprepared Foods: 1%
    • Prepared Foods: 8%
  • Gasoline Tax: 78.00 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 91.42 cents/gallon (Includes all state, local, and federal taxes)

 

Personal Income Tax

  • Personal Income Tax Rate Range: 4.95%
  • Standard deduction: None
  • Personal Exemption Allowance: $2,425/Married Filing Jointly: $2,850.
  • Dependent Exemption: $2,425 (additional $1,000 for 65 and over or blind). Phases out if Adjusted Gross Income is over $250,000
  • Itemized Deductions Allowed? Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Exempt
    • 401Ks/Defined contribution employer retirement plans: Exempt
    • Private pensions: Exempt
    • Public Pensions: Exempt
  • Military Pay
    • Active Duty Pay: Exempt
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt

 

Property Tax

  • Local municipalities average 2.23% of the property's assessed value.
  • Calculation of assessed value: Product of market value and equalized value computed by state.
  • Relief programs for:
    • Owner-occupied: Increase in assessed value over 1977 assessed value is exempt from taxation. Capped at $6,000 ($10,000 in Cook County). Long-time occupant exemptions also available.
    • 65 and over: Up to $5,000 ($8,000 in Cook County and in 2023, bordering counties) of assessed value is exempt from taxation. 
    • 65 and over Freeze: Freezes assessed value for households with income less than $65,000. Can defer taxes up to $7,500.
    • Returning Veterans from active duty: $5,000 ($8,000 in Cook County) of assessed value exempt from taxation.
    • Disabled Veterans/Surviving Spouse: Up to 100% exemption based on percentage of service-linked disability. Assessed value must be less than $250,000 ($100,000 reduction if specially adapted housing)
    • Disabled: $2,000 of assessed value exempt from taxation.
  • Personal Property Tax: No.
Property Tax Comments: Exemptions related to properties impacted by catastrophic events are available. Homestead improvement exemption available.

 

Inheritance & Estate Taxes: Estates over $4 million are taxed at a rate between 8% and 16%. There is no inheritance tax.

 

Department of Revenue website: https://tax.illinois.gov/

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