The Illinois income tax rate is 4.95% and it is a flat tax rate, meaning that no matter what level of income you earn in Illinois, the income tax rate remains the same.
There are a total of eleven states in the U.S. that try to keep things simple when it comes to state income tax rates by imposing a flat rate. The Illinois income tax rate is one of the states that lock in their income tax rate regardless of whether you earn $16,000 a year or $160,000+ per year.
The attraction to move from another US state (or from overseas) to Illinois can be appealing for many reasons, but the fact that the Illinois income tax rate is fixed at 4.95% is even more enticing because it allows you to earn more money and not pay a higher rate of income tax.
Income taxes are something we all need to pay and we are going to specifically cover the Illinois income tax rate when you take into consideration the other taxes you will be liable to pay on your income if you reside in Illinois.
Illinois Income Tax Rates
We are not trying to dampen anyone’s hopes of only paying a 4.95% Illinois income tax rate. But, even though the Illinois income tax rates are fixed at 4.95%, you will still have to pay other taxes on your income whether you work for someone else or own an Illinois business or franchise.
If you live and work in Illinois your paycheck will reflect 4.95% for income tax deductions regardless of the amount your earn. You will also pay other Federal taxes that will affect your take-home pay. Likewise, if, as a business owner you pay yourself a salary through your own payroll or take a monthly, quarterly, or annual distribution/dividend from the net profit your business generates, you will still be liable for some tax. For corporations (excluding S corporations), the Illinois Income Tax is 7%.
Having the Illinois state income tax rate fixed at 4.95% is great. It is also simple and transparent and doesn’t require any complicated calculations. Since the US government is made up of local, state, and federal jurisdictions, you can be certain that in addition to the flat Illinois income tax rates, that the US federal government is going to tax you in one form or another on your income.
The goal of the information we are providing you with is to give you an overview of the likely tax you will pay on your earnings in Illinois. There are multiple factors that affect your tax liability such as being single or married, having children or other dependents, education benefits, and other circumstances. There is never a one-size-fits-all scenario even though the Illinois income tax rates are fixed at 4.95%. You should always consider seeking the help of an Illinois tax professional when filing taxes.
One thing you must always remember is that a flat 4.95% Illinois income tax rate does not mean that you will not be liable to pay other taxes on your earnings – it might just mean you will pay less than if you lived or worked in another state with a higher income tax rate. You should also be aware that while the Illinois state income tax rate is flat regardless of your income level, you will still have to pay Illinois sales tax on most goods and some services. The Illinois state sales tax rate is 6.25%, but depending on the local jurisdiction, the total tax rate can be as high as 9%, such as in Cook County. The average, however, is about 8.75%.
Illinois income tax rate calculator
Although the Illinois state income tax rate is 4.95% that is a flat rate regardless of your income level, we have provided you with various scenarios of the tax you will pay on your income as a resident of Illinois. The following Illinois income tax rate calculator should be used for approximation purposes and does not represent legal authority, or the exact amount of Illinois income tax (including Federal and FICA tax) that you will be liable for – it is a guide based on information from the IRS, the Illinois Department of Revenue (IDOR), and other sources.
The range we have provided in the Illinois income tax rate calculator is from $1,200 per month or $14,400 per year to $12,000 per month, or $144,000 per year. The gross monthly income of $1,603.33 or $19,240 per year in the table represents the minimum wage in Illinois in 2020 of $9.25 per hour. A standard full-time position in the US typically includes a 40-hour workweek that translates to 2,080 hours worked in a year (40 hours x 52 weeks).
There are no local income taxes imposed in Illinois, the 4.95% state-level income tax is all you pay. A deduction of $2,000 is allowed for each exemption claimed on your federal return. You can also receive an additional $1,000 exemption if you or your spouse is 65 or older, legally blind, or both.
Finally, as a resident of Illinois, you will have to pay a bunch of other taxes that are being utilized to rebuild the deteriorating infrastructure of the state. These include sales tax, gasoline and diesel tax, cigarette tax, a Chicago soft drink tax, and a sugary sales tax applicable in Cook County.
|Monthly Gross Wage||FICA Taxes (7.65%)||Federal Income Tax||Illinois Income Tax rate (4.95%)||Net Monthly Income||Net Annual Income||Annual Gross Income|
Illinois Income Tax Brackets
The above table provides you with a broad range of different Illinois income tax brackets scenarios. The income tax calculator used in the table above is based on a single taxpayer (not married or filing as married) claiming one personal exemption.
The Illinois income tax rates in the table reflect almost a worst-case scenario for a US taxpayer because those that are married and have dependents can typically take advantage of other deductions, which would effectively make the federal income tax you pay, less than what you see in the table. To learn more about the various deductions available to you, you may want to visit the Tax Credits and Deductions section of the USAGov website.
Again, you should always consult a professional when it comes to calculating your Illinois tax liability, since other factors may affect the amount of income tax you pay on your earnings in Illinois. The Illinois income tax brackets are fixed at 4.95% as noted on the table, but you are still responsible for paying Social Security (6.2%) and Medicare (1.45%), totaling 7.65%.
You are also responsible for paying Federal Income Tax regardless of whether you reside in Illinois. This is calculated on a sliding scale based on your monthly/annual income and these various tax brackets are illustrated in the table above.
Illinois Department of Revenue (IDOR) Contact Details
The Illinois Dept of Revenue can be contacted by phone, at their office(s), and through a frequently asked questions section on their website. You can ask questions in a search box, narrow down your search by choosing a support category, and if the website does not give you the appropriate answer, you can contact a support representative at the bottom of every answer page. Here is the link to the Illinois Taxpayer Answer Center.
To receive assistance by phone, please call 800 732-8866 or 217 782-3336 (if calling from overseas: 001-217-782-3336). Representatives are available Monday through Friday, 8 am – 5 pm. Our TDD (telecommunication device for the deaf) number is 800 544-5304. To receive assistance by email, use the information below.
- Business Income Tax or Withholding Income Tax: REV.TA-BIT-WIT@illinois.gov
- Individual Income Tax: REV.TA-IIT@illinois.gov
- Local Tax Allocation Division: REV.LocalTax@illinois.gov
- MyTaxIllinois Help: REV.MyTaxHelp@illinois.gov
- MyDec (Online Real Property Transfer Tax) Help: REV.MyDecProject@illinois.gov
- Order Forms: REV.OrderTaxForms@illinois.gov
- Power of Attorney: REV.POA@illinois.gov (submissions only)
- Sales Tax: REV.TA-Sales@illinois.gov
- Sales Tax Exemptions: REV.E99@illinois.gov
You can visit a local office and no appointment is necessary unless your tax matter is complicated. Make sure to bring all the appropriate paperwork.
To Visit the Illinois Dept of Revenue – Here are the local offices
JAMES R. THOMPSON CENTER – 7TH FLOOR
100 WEST RANDOLPH STREET
CHICAGO, ILLINOIS 60601-3274
8:30 am to 5:00 pm
SUBURBAN NORTH REGIONAL BUILDING
9511 HARRISON STREET
DES PLAINES, ILLINOIS 60016-1563
8:30 am – 5:00 pm
15 EXECUTIVE DRIVE – SUITE 2
FAIRVIEW HEIGHTS, ILLINOIS 62208-1331
8:30 am – 5:00 pm
2309 W. MAIN ST. SUITE 114
MARION, ILLINOIS 62959-1196
8:30 am – 5:00 pm
200 S. WYMAN ST.
ROCKFORD, ILLINOIS 61101
8:30 am – 5:00 pm
WILLARD ICE BUILDING
101 WEST JEFFERSON STREET
SPRINGFIELD, ILLINOIS 62702
8:00 am – 5:00 pm