The state of Illinois has a flat income tax, which means that everyone, regardless of income, is taxed at the same rate. That makes it relatively easy to predict the net sales income tax you will have to pay. The income tax rate in Illinois is 4.95%, after an increase from 3.75% in 2017.
Illinois Property Tax
If you have more than one job, you’ll need to split your allowances between your jobs. You can’t claim the same allowances with more than one employer in a single tax year. An alternative is to divide your allowances between the two jobs on the Form IL-W-4 you give to each employer, or you could claim all your allowances with one job and none with the other. If you double-claim allowances while holding more than one job, you’ll owe more money at tax time. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. You can use the income tax estimator to the left to calculate your approximate Illinois and Federal income tax based on the most recent tax brackets.
How To File Your Illinois Income Tax Return
If you’re paid more frequently, each of your paychecks will be smaller. That’s why pay frequency is a common question on paycheck calculators. A bigger paycheck may seem enticing, but smaller, more frequent paychecks can make it easier to budget without coming up short by the Certified Bookkeeper end of the month. Some employees in Illinois might have more money taken from each paycheck.
Calculate Your Paycheck in These Other States
- 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.
- Your employer will also withhold money from each of your paychecks to put toward your federal income taxes.
- The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the “flat tax,” that requires all taxes on income to be at the same rate.
- A financial advisor can help you understand how taxes fit into your overall financial goals.
- For example, candy and soda are generally subject to the higher “general merchandise” rate of 6.25%, but any candy containing flour is not, for sales tax purposes, classified as candy.
- 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.
Illinois’ maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Illinois’ %. 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. When calculating your Illinois income tax, keep in mind that the Illinois state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions. Food, drugs and medical appliances are all subject to a statewide tax rate of 1% of purchase price, in addition to local taxes of up to 1.25%, for a total tax of up to 2.25%. For example, candy and soda are generally subject to the higher “general merchandise” rate of 6.25%, but any candy containing flour is not, for sales tax purposes, classified as candy. To e-file your Illinois and Federal income tax returns, you need a piece of tax software that is certified for eFile by the illinois income tax rate IRS.
Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Illinois tax refund, you can visit the Illinois Income Tax Refund page. In general, the rate ranges from 6.25% to over 8.50%, depending on where the vehicle is purchased. Owner-to-owner sales, however, are subject to a lower rate, which depends on the price of the vehicle and, in some situations, the model year. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
e-Filing: Submit Your Illinois Tax Return Online
These reduce a taxpayer’s total tax bill by some amount, which is in contrast to tax deductions, which only reduce a taxpayer’s taxable income. If you paid $1,000 in property taxes in 2024, you could claim a credit of $50 on your income tax return, which equates to $50 less that you end up paying in taxes. The Illinois Fair Tax was a proposed amendment to the Illinois state constitution that would have effectively changed the state income tax system from a flat tax to a graduated income tax.