Unlike states with complex tax brackets that increase rates based on income, Illinois’s flat tax system applies the same percentage to every taxpayer, simplifying calculations and filing. Property taxes vary by municipality, but northeastern Illinois — including Chicago — has significantly higher property taxes than the rest of the state. The due date for filing an Illinois individual income tax return is April 15 of the year after the tax year, unless it falls on a weekend or holiday. For calendar year filers, this date is also the deadline for making any required Illinois estimated tax payments.
- Automatic extension payment — We grant an automatic six-month extension of time to file your return.
- You owe this penalty if you file a return, an amended return, or a claim for refund or credit with the intent to defraud.
- A reduced rate of 1 percent applies to qualifying food, drug and medical appliances.
- Illinois allows personal exemptions but doesn’t offer a standard deduction.
- The exemption for tax year 2024 is a maximum of $5,550 for married couples filing jointly ($2,775 for single filers).
Illinois Income Tax Estimator
You also may qualify for exemptions for each dependent, further lowering taxable income. The base income earned in Illinois or while a resident of Illinois is then reduced by the number of federally claimed exemptions and https://demo.nitmag.com/set-your-practice-up-for-success-how-to-establish/ any additional exemptions. Illinois provides a standard Personal Exemption tax deduction of $ 2,625.00 in 2025 per qualifying filer and qualifying dependent(s), this is used to reduce the amount of income that is subject to tax in 2025.
What’s New for Illinois Income Taxes
The Illinois Department of Revenue (IDOR) provides free online filing through the MyTax Illinois portal, which allows users to submit their IL-1040, track their return status, and make payments directly. Many taxpayers also use third-party tax software that integrates state and federal returns. Illinois residents typically use Form IL-1040 for individual income tax returns. Completing this form accurately requires reflecting all income, deductions, and credits.
Individual Taxes
For official forms and instructions, visit the Illinois Department of Revenue website, which provides up-to-date resources and guidance for il individual income tax rate taxpayers. Illinois also has reciprocity with the neighboring states of Iowa, Kentucky, Michigan and Wisconsin, which means those states don’t tax Illinois residents who work within their borders. So if you live in Illinois and work in Iowa, Kentucky, Michigan or Wisconsin, you’ll pay tax to your home state.
Online Sports Betting Taxes by State, 2025
- Chicago residents are subject to federal income tax based on the progressive federal tax brackets outlined above.
- The Property Tax Credit allows homeowners to claim 5% of property taxes paid on their primary residence against state income tax liability.
- The 2025 tax rates and thresholds for both the Illinois State Tax Tables and Federal Tax Tables are comprehensively integrated into the Illinois Tax Calculator for 2025.
- Tax software or professional assistance can help simplify the process for those with complex tax situations.
- When comparing Illinois to other states, it’s important to note that some states have progressive income tax systems, where tax rates increase as income rises.
Unlike many other states, Illinois does not have a progressive income tax system. This means that regardless of how much you earn, the tax rate remains the same. For Illinois residents, the flat rate How to Invoice as a Freelancer for income tax is 4.95% as of 2025.
