Illinois’s tax system ranks illinois income tax rate 37th overall on the 2025 State Tax Competitiveness Index. The 2024 standard deduction has also been raised from the 2023 deduction across filing statuses. The 2025 standard deduction across filing statuses has also been raised from the 2024 deduction. This free tax calculator will provide you with your esimtated tax return results. Illinois does not have standard and itemized deductions, nor do they use the federal standard deduction amounts.
Protecting Illinois Taxpayers
- Illinois’s tax system ranks 37th overall on the 2025 State Tax Competitiveness Index.
- Cuts and Jobs Act of 2017 (TCJA), the IRS now uses the Chained Consumer Price Index (C-CPI) to adjust income thresholds, deduction amounts, and credit values accordingly.
- To e-file your Illinois and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS.
- There are seven federal individual income tax brackets; the federal corporate income tax system is flat.
- Qualifying deductions might include an itemized deduction, the Illinois standard deduction, exemptions for dependants, business expenses, etc.
There’s no specific payroll tax in Illinois, but employers are obligated to contribute to the state’s unemployment insurance fund. Line 40 was updated to Certified Public Accountant clarify the subtraction for disallowed deductions under IRC Section 280E for cannabis establishments, cannabis cultivation centers, or medical cannabis dispensing organizations. University of Illinois Tax School is not responsible for any errors or omissions, or for the results obtained from the use of this information.
Earned Income Credit
Illinois has no state tax on inheritance, but you are required to file on all estates of $4 million or more. Illinois provides a standard Personal Exemption tax deduction of $ 2,625.00 in 2025 per qualifying filer and qualifying dependent(s), this is used to reduce the amount of income that is subject to tax in 2025. 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 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. Some tax rates are the same for all taxpayers (fixed rates) and some are determined by location (location-based).
iCalculator™ US
Completing this form accurately requires reflecting all income, deductions, and credits. Tax software or professional assistance can help simplify the process for those with complex tax situations. The Income tax rates and personal allowances in Illinois are updated annually with new tax tables published for Resident and Non-resident taxpayers.
Many tax provisions—both at the federal and state level—are adjusted for inflation. In a progressive individual or corporate income tax system, rates rise as income increases. There are seven federal individual income tax brackets; the federal corporate income tax system is flat. Illinois’ flat income tax rate means that every resident, regardless of income level, pays the same individual income tax rate of 4.95 percent.
- You can’t claim the same allowances with more than one employer in a single tax year.
- Illinois has a state income taxof 4.95%.For your convenience, Tax-Brackets.org provides printable copies of 76 current personal income tax forms from the Illinois Department of Revenue.
- Every state with an income tax as well as the IRS support the Single filing status.
- If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
This page shows Tax-Brackets.org’s archived Illinois tax brackets for tax year 2022. This means that these brackets applied to all income earned in 2022, and the tax return that uses these tax rates was due in April 2023. The latest available tax rates are for 2024, and the Illinois income tax bracketshave not been changed since 2021. This page shows Tax-Brackets.org’s archived Illinois tax brackets for tax year 2020. This means law firm chart of accounts that these brackets applied to all income earned in 2020, and the tax return that uses these tax rates was due in April 2021.
