Local governments can levy an additional sales tax of no more than 4.75%.
Current average sales tax (with local taxes included): 8.3%
Common Exceptions at State Level:
Prescription and Over-the-Counter Medicine: 1%
Unprepared Foods: Exempt
Prepared Foods: 8%
Gasoline Tax: 84.50 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 98.40 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: 4.95%
Standard deduction: None
Personal Exemption Allowance: $2,925/Dependent Exemption: $2,925 (additional $1,000 for 65 and over or blind). Phases out if Adjusted Gross Income is over $250,000.
Itemized Deductions Allowed? Yes, subject to limitations.
Active Duty Pay: Exempt if included in federal AGI
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Exempt
Property Tax
Local municipalities average 2.01% of the property's assessed value.
Calculation of assessed value: 1/3 of market value (except in Cook County).
Relief programs for:
Owner-Occupied: Increase in assessed value over 1977 assessed value is exempt from taxation. Capped at $6,000 ($8,000 in Cook County and bordering counties). Long-time occupant exemptions also available.
65 and Over: Up to $5,000 ($8,000 in Cook County and bordering counties) of assessed value is exempt from taxation.
65 and Over Freeze: Freezes assessed value for households with income less than $65,000. Can defer taxes up to $7,500.
Returning Veterans from Active Duty: $5,000 ($8,000 in Cook County) of assessed value exempt from taxation.
Disabled Veterans/Surviving Spouses: Up to 100% exemption based on percentage of service-linked disability. Assessed value must be less than $250,000 ($100,000 reduction if specially adapted housing)
Disabled: $2,000 of assessed value exempt from taxation.
Personal Property Tax: No.
Property Tax Comments: Exemptions related to properties impacted by catastrophic events are available. Homestead improvement exemption available.
Inheritance & Estate Taxes: Estates over $4 million are taxed at a rate between 8% and 16%. There is no inheritance tax.
Premium and Life members can consult our financial staff for education and consumer advice.
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