Illinois Tax Calculator 2024-2025: Estimate Your Taxes

The downstate portion is distributed similarly, except that the collections from the 1977 tax year are used to calculate each taxing district’s share of the distribution. These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations. Unemployment Insurance (UI) supplies funding for the Illinois Department of Employment Security (IDES), which pays benefits to the unemployed. The wage base is $13,916 for 2025 and rates range from 0.75% to 7.85. Newly registered businesses must register with IDES within 30 days of starting up.

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The following tax tables are supported by iCalculator™ US tax percentage in illinois as part of the suite of free tax tools available in the US Tax HUB we provide for Illinois. The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00. As a rule, an individual’s income can be taxed both by the state in which the taxpayer resides and by the state in which the taxpayer’s income is earned. There are three types of residency statuses when it comes to Illinois state tax. However, Illinois has a handful of tax-saving programs that may affect your final tax bill, and these can apply differently based on income or other life circumstances.

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In 1979, a law was enacted to provide online bookkeeping for statewide taxes to replace the monies lost to local governments. Illinois has ahigher-than-average sales tax, includingwhen local sales taxes from Illinois’s 515 local tax jurisdictions are taken into account. In addition to state and local sales taxes, there are a number of additional taxes and fees Illinois car buyers may encounter.

What are the rates?

• Illinois Income Tax did not increase for Tax Year 2024, with a constant tax rate of 4.95%.
• Your county’s property tax assessor will send you a bill detailing the exact amount of property tax you owe every year.
• The tax on a package of adult use cannabis infused product is computed by multiplying the total sales price of the product by the Cannabis Cultivation Privilege (Adult Use) Tax rate of 7%, without regard to the amount of useable cannabis in the package.
• Utilities pay the invested capital tax by the fifteenth day of March, June, September, and December.
• Self-employed individuals or those with significant non-wage income may need to make quarterly estimated tax payments to avoid underpayment penalties.
• This means that you save the sales taxes you would otherwise have paid on the $5,000 value of your trade-in.
• Previously, the tax rate was raised from 3% to 5% in early 2011 as part of a statewide plan to reduce deficits.

These contributions are typically made pre-tax, and you can lower your taxable income, save on taxes, and invest in your future at the same time. With all these deductions accounted for, you’ll arrive at your net pay, which lands in your bank account. It’s important to review your paycheck regularly to ensure the accuracy of the deductions and to understand how your financial decisions impact your take-home pay. Social Security and Medicare are two more deductions on your paycheck, commonly known as FICA taxes. These taxes fund essential social programs and are shared between employees and employers. Your contributions today help ensure the future stability of these programs for you and others.

• Statistics show that about 25% of homes in America are unfairly overassessed, and pay an average of $1,346 too much in property taxes every year.
• All cultivators, craft growers, and dispensaries will be subjected to review for quarter-monthly (accelerated) payment requirements as of January 1, 2020.
• Other forms of supplemental wages you can seek include bonuses, commission, stock options and prizes.
• No Illinois cities charge a local income tax on top of the state income tax, though.
• A sale for resale transaction occurs when tangible personal property is sold to a purchaser (reseller) for the purpose of resale (this transaction is also referred to as a sale at wholesale).
• Estates over that amount must file an Illinois estate tax return and face tax rates up to 16%.
• A craft grower may contain up to 5,000 square feet of canopy space on its premises for plants in the flowering state.

State Individual Income Taxes on Nonresidents: A Primer

The origin-based method of determining sales tax is less complicated for vendors than destination-based sales tax, because all in-state buyers are charged the same sales tax rate regardless of their location. The state of Illinois has a relatively complex sales tax system, and utilizes a flat state tax rate which is broken down into four categories – the Retailers’ Occupation Tax, Use Tax, Service Occupation Tax and the Service Accounting Security Use Tax. All of these taxes are administered by the state’s Department of Revenue, and apply to the sale of goods and services respectively. Chicago for example, has a 9.25% sales tax including local-option taxes, which is one of the highest sales taxes of any city in the United States.