The state income tax system in Illinois only has a single tax bracket. However, there are multiple tax brackets for federal income tax. 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. 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%.
The Earned Income Tax Credit is currently 18% of the federal credit by the same name. The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses. A financial advisor can help you understand how taxes fit into your overall financial goals.
Where To Send Your Illinois Tax Return
Publication 131-D, 2023 Withholding Income Tax Payment and Return Dates, has been updated to include the specific due dates for withholding payments and Form IL-941, Illinois Withholding Income Tax Return. As bad as the tax burden is, Amendment 1 on the ballot Nov. 8 would guarantee Illinoisans’ total tax burdens continue to grow as pensions https://www.bookstime.com/ crowd out a greater share of state and local spending. The public union-backed change to the Illinois Constitution would protect union power and prevent it from ever being diminished without another statewide vote. The state also boasts a diverse economy, with thriving industries ranging from agriculture to finance to technology.
- Some states have a flat tax rate, marginal tax rate, or don’t have any state taxes at all.
- Illinois collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets.
- 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.
- This paycheck calculator also works as an income tax calculator for Illinois, as it shows you how much income tax you have to pay based on your salary and personal details.
- Illinois does have a dependent exemption of $2,425 per dependent for 2023.
- Married couples filing jointly with an adjusted gross income over $500,000, and all other filing statuses with AGI over $250,000, can’t claim the education expense credit.
This means that some people might be in a lower tax bracket than they were previously. Illinois’ maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Illinois’ %. 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. As your taxable income moves up this ladder, each layer gets taxed at progressively higher rates.
Do I Have to Pay Income Tax in Illinois?
Married couples filing jointly with an adjusted gross income over $500,000, and all other filing statuses with AGI over $250,000, can’t claim the education expense credit. Income tax deductions are expenses that can be deducted from illinois income tax rate your gross pre-tax income. Using deductions is an excellent way to reduce your Illinois income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Illinois tax returns.