Illinois State Taxes: What Youll Pay in 2025

The percentage that’s withheld will depend on things such as your income, your filing status (single, married filing jointly, etc.) and any tax credits you indicate on your W-4 form. Illinois’ corporate component score is also hurt by the state’s lack of bonus depreciation allowance under IRC Section 168(k). Illinois also has a 6.25 percent state sales tax rate and an average combined state and local sales tax rate of 8.86 percent. Illinois has a 1.95 percent effective property tax rate on owner-occupied housing value. Married Filing Jointly is the filing type used by taxpayers who are legally married (including common law marriage) and file a combined joint income tax return rather than two individual income tax returns. Illinois residents typically use Form IL-1040 for individual income tax returns.

Illinois Median Household Income

Filing jointly has many tax benefits, as the IRS and many states effectively double the width of most MFJ brackets when compared to illinois income tax rate the Single tax bracket at the same tax rate level. This means that in most cases, you will pay less income tax overall by filing jointly. In many states, married couples who choose to file separately are subject to additional restrictions.

Illinois Tax Tables 2024 – Tax Rates and Thresholds in Illinois

The new inflation adjustments are for tax year recording transactions 2024, for which taxpayers will file tax returns in early 2025. The 2023 tax rates and thresholds for both the Illinois State Tax Tables and Federal Tax Tables are comprehensively integrated into the Illinois Tax Calculator for 2023. This tool is freely available and is designed to help you accurately estimate your 2024 tax return.

Federal Married (separate) Filer Tax Tables

Tracking investment activity throughout the year ensures accurate reporting and compliance. Taxpayers with multiple income streams law firm chart of accounts may benefit from professional guidance or tax software to streamline the process. The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Illinois’ and may have different rules.

• Limits on the deduction begin phasing in for taxpayers with income above $191,950 (or $383,900 for joint filers) in 2024 (Table 7).
• 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 a few exceptions, including military pay you received as a civilian.Nonresidents — those who only live in the state because of military assignment — are not required to report military pay to Illinois.
• Your employer will also withhold money from each of your paychecks to put toward your federal income taxes.
• This nonbinding measure expresses support for establishing an extra 3 percent tax on income of over $1 million, with that revenue being directed to property tax relief.
• Step 4 and the Illinois Expanded EITC Worksheet were updated to simplify claiming the Illinois EITC.

Illinois State Income Tax Tables in 2021

Deductible mileage rates for the 2024 tax year have also changed, and are summarized in the following table. In the realm of the estate and gift tax, the basic exclusion for decedents in 2025 is $13,990,000. A relative, boy- or girlfriend, family member, or other person might qualify as an Other Dependent on your tax return. Illinois Income Tax did not increase for Tax Year 2024, with a constant tax rate of 4.95%. While supporters praise its predictability, critics argue it disproportionately impacts lower-income earners, raising broader questions of economic equity. Illinois also accepts online payments of your tax debt with credit cards and debit cards, or through a bank transfer.

You can save time and money by electronically filing your Illinois income tax directly with the . Benefits of e-Filing your Illinois tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below. Illinois’ maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Illinois’ %.