The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Illinois’ and may have different rules. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. il income tax brackets Technically, you don’t have just one “tax bracket” – you pay all of the Illinois marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar.

Money Report

That is, billionaires should pay more in taxes than they typically do, as they benefit massively from being able to operate from the U.S. But, we cannot resolve these inequities at the state level, as states are competing with one another for economic development. For example, many Illinoisans depart for fast-growing Florida, Tennessee or Texas because there are no state income taxes there. Many of my friends live in Florida six months a year (or less) and avoid the 4.95% Illinois income tax. Single is the filing type used by all individual taxpayers who are not legally married, and who have no dependants for whom they are monetarily responsible.

Overview of Illinois Taxes

The 2023 tax rates and thresholds for both the Illinois State Tax Tables and Federal Tax Tables are comprehensively integrated into the Illinois Tax Calculator for 2023. This tool is freely available and is designed to help you accurately estimate your 2024 tax return. Illinois provides a standard Personal Exemption tax deduction of $ 2,425.00 in 2023 per qualifying filer and qualifying dependent(s), this is used to reduce the amount of income that is subject to tax in 2023. All taxes the virtual accountant Illinois Department of Revenue administers are below. Some tax rates are the same for all taxpayers (fixed rates) and some are determined by location (location-based).

Illinois Standard Deductions & Personal Exemption Amounts

Beer will generally be subject to a rate of 23.1 cents per gallon while wine and liquor are subject rates of $1.39 and $8.55 per gallon, respectively. The Earned Income Tax Credit is currently 20% of the federal credit by the same name. For tax year 2023, the maximum state credit a person can claim is $1,486. The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses. The federal standard deduction for a Head of Household Filer in 2023 is $ 20,800.00. Not sure if your child or an other person will qualify to be a dependent on your tax return?

• Not sure if your child or an other person will qualify to be a dependent on your tax return?
• 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.
• All income received while a resident, plus income from Illinois sources while a nonresident.
• State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet.

States with flat income tax rates

• (The best tax is one on thee and not on me.) So, look for the crushing Democratic majorities in Springfield to put a binding proposal on the ballot in 2026.
• The Earned Income Tax Credit is currently 20% of the federal credit by the same name.
• The standard deduction for single filers or married couples filing separately is $14,600 for 2024, a $750 increase.
• Illinois has a flat income tax of 4.95%, which means everyone’s income in Illinois is taxed at the same rate by the state.

Our partners cannot pay us to guarantee favorable reviews of their products or services. “If we can convert and still stay in the 24% bracket or lower, I’m a thumbs up,” he said. But bumping into the 32% bracket or higher prolongs the “recovery period” to recoup upfront taxes.

For single taxpayers and married individuals filing separately in tax year 2025, the standard deduction is rising to $15,000 — up $400 from 2024. Some accounts, like a 401(k), FSA or HSA, allow you to make pre-tax contributions. That means the money comes out of your paycheck before income taxes do.

• Typically, the strategy is popular during a stock market downturn because the converted balance triggers a smaller tax bill.
• For all of the tax forms we provide, visit our Illinois tax forms library or the ‘s tax forms page.
• Once you’ve filed your tax return, all you have to do is wait for your refund to arrive.
• For example, many Illinoisans depart for fast-growing Florida, Tennessee or Texas because there are no state income taxes there.
• You can also pay estimated taxes every quarter to cover your bases with the IRS.

Illinois Alcohol and Tobacco Tax

If you live and work in the same state, you probably need to file only one state return each year if applicable. 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. There are three types of residency statuses when it comes to Illinois state tax.

What about investment income?

When you prepare your return on eFile.com this is all calculated for you. Also, recording transactions you will find links to other important Illinois income tax return information and other related features (e.g. tax extension, amendment, etc.). Qualified education expenses over $250 are eligible for a tax credit.