Illinois Tax Calculator 2023-2024: Estimate Your Taxes

Some employees in Illinois might have more money taken from each paycheck. For example, if you pay a share of premiums for health insurance, life insurance or disability insurance through your company, that money will be deducted from your earnings. You might also have money subtracted from your paycheck if you contribute to a 401(k), a flexible spending account (FSA) or a health savings account (HSA).

How You Can Affect Your Illinois Paycheck

AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. Certain types of income are added back to your federal AGI on your Illinois return. Other types are subtracted, resulting in what Illinois calls your “base income.” The state put the question of switching over to a progressive tax system to voters on the November 2020 ballot. The telecommunications tax is a tax on services including home phone lines, cell phones, television service and internet. It varies by location, but is generally about 7% of the price of service.

Illinois Tax Tables 2024 – Tax Rates and Thresholds in Illinois

• You can’t claim this credit if your federal AGI exceeds $250,000, or $500,000 if you’re married and file a joint return.
• These state income tax rates apply to income earned in 2023, for tax returns filed in 2024.
• Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.
• The general merchandise sales tax applies to almost all other products purchased for use in Illinois.
• Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.

The problem with our current system is that property taxes often require lower-income families to pay a larger share of their income than affluent families. According to the Illinois Economic Policy Institute, Illinois has the eighth most unfair property tax system. ITEP says it ranks eighth for heaviest reliance on property taxes. Neither candidate’s team has said whether it would exempt tips only from income taxes, only from payroll taxes or both. But experts say there’s a reason Congress hasn’t made such a change already.

Illinois Sales Tax

The exemption for 2023 is as high as $4,850 for married couples filing jointly ($2,425 for single filers). Illinoisans paid the second-highest property tax rate in the U.S. in 2022, with the median Illinois homeowner spending more than taxpayers in Alabama, West Virginia, Arkansas, Louisiana and South Carolina combined. In the state capital of Springfield, 112% of property taxes go towards public pensions.

• Remember that Illinois may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Illinois income tax return.
• The museum said special programs on Tuesdays in August will include Open Art Studio, Let’s Move, and guest programming with UW Genetics outreach.
• View how much tax you may pay in other states based on the filing status and state entered above.
• Illinois has a flat income tax rate which applies to both single and joint filers.
• For an in-depth comparison, try using our federal and state income tax calculator.

But if you moved to another state during the year, lived in one state but worked in another, or have, say, income-producing rental properties in multiple states, you might need to file more than one state return. Illinois what is state income tax in illinois also accepts online payments of your tax debt with credit cards and debit cards, or through a bank transfer. There is, however, a convenience fee for the use of a credit or debit card when paying your taxes.

Illinois Head of Household Filer Tax Tables

• A growing share of property taxes have gone to government pensions, which continue eating more school and local government resources.
• For more information, see the IL-1040 Step-by-Step Instructions and Publication 101.
• The state uses a flat income tax rate but doesn’t tax retirement income or Social Security.
• Illinoisans paid the second-highest property tax rate in the U.S. in 2022, with the median Illinois homeowner spending more than taxpayers in Alabama, West Virginia, Arkansas, Louisiana and South Carolina combined.

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. The property tax credit is equal to 5% of the Illinois property tax paid on your primary residence. You can’t claim this credit if your federal AGI exceeds $250,000, or $500,000 if you’re married and file a joint return. Complete Schedule ICR with your Illinois tax return to claim it.

Illinois exemption allowance

The 2.23% effective property tax rate in Illinois is second-highest in the nation, behind only New Jersey. That means the typical homeowner in the Prairie State pays 2.23% of their home value in property taxes. As simple as Illinois tries to make income tax, the state seems to take the opposite approach with sales taxes. There are three rate structures depending on what you are buying.

Illinois Standard Deductions & Personal Exemption Amounts

There are some food items that don’t count as a qualifying food. For example, candy and soda are generally subject to the higher “general merchandise” rate, but any candy containing flour is not, for sales tax purposes, classified as candy. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.

Federal Head of Household Filer Tax Tables

Illinois collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Unlike the Federal Income Tax, Illinois’ state income tax does not provide couples filing jointly with expanded income tax brackets. The general merchandise sales tax applies to almost all other products purchased for use in Illinois. However most areas have additional local taxes between 0% and 5.25%. Cook, Kane and Warren counties are home to the state’s highest combined sales tax rates of 11.50%, 11% and 11%, respectively. In addition, Illinois has what is called an exemption allowance, which is a set amount that most people who earned a paycheck can knock off their taxable income.