Illinois

Sales Tax

  • Statewide: 6.25%
  • Counties can levy an additional sales tax of no more than 4.75%.
  • Current average sales tax (with local taxes included): 7.821%
  • Common Exceptions at State Level:
    • Prescription and Over-the-Counter Medicine: 1%
    • Unprepared Foods: 1%
    • Prepared Foods: 8%
  • Gasoline Tax: 77.96 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 89.62 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: $2.98/pack of 20

 

Personal Income Tax

  • Personal Income Tax Rate Range: 4.95%
  • Standard deduction: None
  • Personal Exemption Allowance: $2,325. Dependent Exemption: $2,325. Phases out if Adjusted Gross Income is over $250,000
  • Itemized Deductions Allowed? Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Exempt
    • 401Ks/Defined contribution employer retirement plans: Exempt
    • Private pensions: Most are exempt
    • Public Pensions: Exempt
  • Military Pay
    • Active Duty Pay: Exempt
    • 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 2.27% of the property's assessed value.
  • Calculation of assessed value: Product of market value and equalized value computed by state.
  • Relief programs for:
    • Owner-occupied: Increase in assessed value over 1977 assessed value is exempt from taxation. Capped at $6,000 ($10,000 in Cook County)
    • 65 and over: Up to $8,000 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.
    • Returning Veterans: $5,000 ($8,000 in Cook County) of assessed value exempt from taxation.
    • Disabled Veterans/Surviving Spouse (not remarried): Up to 100% exemption based on percentage of service-linked disability. ($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.

 

Inheritance & Estate Taxes: Estates over $4 million are taxed at a maximum rate of 16%. There is no inheritance tax.

 

Department of Revenue website: www2.illinois.gov/rev

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