- Statewide: 6.25%
- Counties can levy an additional sales tax of no more than 5.24%.
- Current average sales tax (with local taxes included): 8.17%
- Common Exceptions at State Level:
- Prescription and Over-the-Counter Medicine: 1%
- Unprepared Foods: 1%
- Prepared Foods: 8%
- Gasoline Tax: 78.00 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 91.42 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: $2,425/Married Filing Jointly: $2,850.
- Dependent Exemption: $2,425 (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.
- Retirement Income
- Social Security: Exempt
- IRAs: Exempt
- 401Ks/Defined contribution employer retirement plans: Exempt
- Private pensions: 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 Comments: Exemptions related to properties impacted by catastrophic events are available. Homestead improvement exemption available.
- Local municipalities average 2.23% 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). Long-time occupant exemptions also available.
- 65 and over: Up to $5,000 ($8,000 in Cook County and in 2023, 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 Spouse: 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.
Inheritance & Estate Taxes: Estates over $4 million are taxed at a rate between 8% and 16%. There is no inheritance tax.
Department of Revenue website: https://tax.illinois.gov/