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. The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare.

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Illinois provides a standard Personal Exemption tax deduction of $ 2,625.00 in 2024 per qualifying filer and qualifying dependent(s), this is used to reduce the amount of income that is subject to tax in 2024. As home values have spiked, Florida and other states are weighing elimination of property taxes. If your state tax witholdings are greater then the amount of income tax you owe the state of Illinois, you will receive an income tax refund check from the government to make up the difference.

• You can’t claim the same allowances with more than one employer in a single tax year.
• Illinois also has a 66.5 cents per gallon gas tax rate and a $2.98 cigarette excise tax rate.
• Illinois provides a standard Personal Exemption tax deduction of $ 2,625.00 in 2024 per qualifying filer and qualifying dependent(s), this is used to reduce the amount of income that is subject to tax in 2024.
• Federal retirement plans in the United States, such as 401(k), 403(b), SARSEP, and 457 plans, along with SIMPLE plans, offer valuable opportunities for individuals to save for their post-working years while enjoying certain tax benefits.
• Estates over that amount must file an Illinois estate tax return and face tax rates up to 16%.
• 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.
• 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.

Illinois: Federal FICA Rates in 2024

You might also have money subtracted from your paycheck if you contribute to a 401(k), a flexible spending account (FSA) or a health savings account (HSA). The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00. View how much tax you may pay in other states based on the filing status and state entered above. The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Illinois.

Illinois State Taxes: What You’ll Pay in 2025

As simple as Illinois tries to make income tax, the state seems to take the opposite approach with sales taxes. The three categories are qualifying food and drugs, vehicles and general merchandise. According to the latest economic data from the US Census Bureau, the average per capita state and local tax burden is $7,109. However, collections vary widely by state, reflecting differences in tax rates and bases, natural resource endowments, the scale and scope of taxable economic activity in each state, and residents’ political preferences.

Beer will generally be subject to a rate of 23 cents per gallon while wine and liquor are subject rates of $1.39 and $8.55 per gallon, respectively. For each pay period, your employer will withhold 6.2% of your earnings for Social Security taxes and 1.45% of your earnings for Medicare taxes. Together these are called FICA taxes, and your employer will pony up a matching contribution. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.

Related Calculators

The Tax tables below include the tax rates, thresholds and allowances included in the Remote Bookkeeping Illinois Tax Calculator 2025. On the state level, you can claim allowances for Illinois state income taxes on Form IL-W-4. Your employer will withhold money from each of your paychecks to go toward your Illinois state income taxes. A reduced rate of 1 percent applies to qualifying food, drug and medical appliances. The general merchandise sales tax applies to almost all other products purchased for use in Illinois. However most areas have additional local taxes between 0% and 5.25%.

It’s important to look at your complete financial picture, including property taxes, sales taxes, and any local taxes, when deciding where to live. As reported by VisaVerge.com, the flat income tax rate in Illinois is both a strength and a weakness. It makes tax filing easier and more predictable, which is especially helpful for immigrants, new residents, and those with fluctuating incomes. However, the lack of tax brackets means the system is not progressive, so low-income residents pay the same petty cash rate as high earners.

• 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.
• Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
• With the standard deduction, generally speaking, you have to choose whether to take it or add up your itemized deductions and claim those instead.
• The Tax tables below include the tax rates, thresholds and allowances included in the Illinois Tax Calculator 2024.
• 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.
• Other factors, such as our own 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.

While some neighboring states have recently changed their tax systems—such as Indiana lowering its flat rate to 3% and Iowa moving to a flat rate of 3.8%—Illinois has chosen to keep its approach steady. This consistency is important for residents, employers, and anyone considering a move to Illinois, as it provides predictability in financial planning. Taxpayers 65 or older and those who are legally blind receive an extra exemption of $1,000 each.

Who has to file Illinois state income tax?

Our partners cannot pay us to guarantee favorable reviews of their products or services. The Earned Income Tax Credit is currently 20% of the federal credit by the same name. For tax year 2024, the maximum state credit a illinois income tax rate person can claim is $1,566. The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses. Some employees in Illinois might have more money taken from each paycheck. For example, if you pay a share of premiums for health insurance, life insurance or disability insurance through your company, that money will be deducted from your earnings.