Illinois Tax Brackets for the Single Filing Type

531, enacted in April 2022, Mississippi continues reducing its flat individual income tax rate. Effective January 1, 2025, the tax rate goes down from 4.7 percent to 4.4 percent (applied on taxable income exceeding $10,000). 521 was enacted, retroactively reducing Idaho’s individual and corporate income tax rates from 5.8 to 5.695 percent as of January 1, 2024.

• Read the Illinois Department of Revenue’s filing requirements for more.
• But taxpayers whose income exceeds $500,000 (married filing jointly filers) or $250,000 (all other filers) can’t claim a personal exemption.
• 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.
• Illinois’ flat income tax rate means that every resident, regardless of income level, pays the same individual income tax rate of 4.95 percent.
• Fringe benefits are usually taxable to employees and must be included in pay – unless they’re specifically excluded by law.
• If your spouse is not a U.S. citizen, tax-free gifts are limited to present interest gifts whose total value is below the annual exclusion amount, which is $194,000 in 2026 (it was $190,000 in 2025).

Tax Rate Database

Illinois retains a 4.95% flat income tax for 2025 and fully exempts retirement income per HR112. New residents should obtain an SSN or ITIN, verify employer records, and save paystubs. Withholding usually covers employee liabilities, but self-employed or investment earners must make estimated payments if liability exceeds $400. File Form IL-1040 and pay any tax owed by April 15, 2026; extensions apply to filing only, not payments.

• Some employees in Illinois might have more money taken from each paycheck.
• Enter income and filing status, then select Calculate for instant results.
• The standard deduction will increase by $350 for single filers and by $700 for joint filers compared to the 2025 tax year (Table 2).
• For example, if you paid $20,000 in taxes over the course of the year (including any payment you made when you filed your taxes), and your taxable income is $100,000, then your effective tax rate is 20%.
• Income tax deductions are expenses that can be deducted from your gross pre-tax income.
• Capital gains tax is what you pay on the profits you earn from selling your capital assets.

What is the deadline for filing Illinois state taxes in 2025?

Read more on exemptions at this Illinois Revenue Department page. If you have kids and meet the income limits, you can potentially take $2,000 off your tax bill per child. Yes — results are often shown per pay period and yearly totals. In 2026, the first $19,000 of gifts to any person is excluded from tax, remaining the same as in 2025. The exclusion is increased to $194,000 from $190,000 for gifts to spouses who are not citizens of the United States. Property Tax –  Property Tax Rate Tables are available in the Property Tax Statistics area illinois income tax rate by tax year in tables 27 and 28.

Mileage Rates

Illinois’ uncompetitive and burdensome tax environment makes it difficult for the NFL team to operate. Use these free tax calculator tools and get immediate answers to many of your personal tax questions. The telecommunications tax is a tax on services including home phone lines, cell phones, television service and internet.

Andy Rosen is a former NerdWallet writer who covered taxes, cryptocurrency investing and alternative assets. He has more than 15 years of experience as a reporter and editor covering business, government, law enforcement and the intersection between money and ideas. In these roles, Andy has seen cryptocurrency develop from an experimental dark-web technology into an accepted part of the global financial system.

Illinois uses a flat tax system for income, meaning all taxpayers are taxed at the same 4.95% rate, regardless of income level. The IRS has announced the annual inflation adjustments for the year 2026, including tax rate schedules, tax tables and cost-of-living adjustments. The monthly limit for qualified transportation fringe benefits and for qualified parking has been increased to $325, up from $315 in 2024. While this may not sound like much, it can help you reduce your taxable income.

• Figuring out how much of your paycheck you’ll actually take home after taxes and deductions can be confusing — especially in a state like Illinois where flat state income tax combines with federal and payroll taxes.
• Other factors, such as our proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site.
• No need to reference tax tables or manually compute every deduction.
• You can’t claim the same allowances with more than one employer in a single tax year.

Illinois — Married Filing Jointly Tax Brackets

If you paid $1,000 in property taxes in 2025, 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 tables below outline the income tax structure, deduction amounts, state-level credits and payroll-related rules used retained earnings for Illinois in 2026. All taxable income is taxed at the same rate, with no marginal brackets. To understand how flat tax tables differ from progressive systems, see our Tax Tables guide. Illinois makes filing state income taxes straightforward with its flat tax rate of 4.95% for all individual taxpayers.

State Tax Changes Taking Effect January 1, 2026

Whether you’re a full-year resident, part-year resident, or nonresident, TurboTax is here to help simplify the process. Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.

Illinois taxation is not limited to personal income; there are specific tax brackets for businesses as well. Corporations in Illinois are taxed at a rate of 9.5% on their net income. This article aims to provide a comprehensive guide to Illinois tax brackets, including current rates, the structure of taxation, and how to file taxes in the state. Tax credits are a dollar-for-dollar reduction in your Balancing off Accounts tax bill. If you owe $3,000 in taxes and you’re eligible for $500 in tax credits, your bill drops to $2,500. For most taxpayers, tax credits offer bigger savings than deductions.