Illinois uses a flat tax system for income, meaning all taxpayers are taxed at the same 4.95% rate, regardless of income level. 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. The two most popular tax software packages are H&R Block At Home, Bookkeeping for Chiropractors sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company.
- Most military pay, including retired pay, is not taxed in Illinois.
- Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.
- The Internal Revenue Service typically announces the numbers more than a year in advance.
- University of Illinois Tax School is not responsible for any errors or omissions, or for the results obtained from the use of this information.
- Married couples filing jointly with an adjusted gross income (AGI) over $500,000, and taxpayers in all other filing statuses with AGI over $250,000, can’t claim the education expense credit.
Sales Tax Rates(Updated January
Every state with an income tax as well as the IRS support the Single filing status. 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. For example, if you’re sitting on a large brokerage account with sizable gains, you could leverage your lower tax brackets to rebalance your portfolio, he said. While Tax Day is April 15, we don’t yet know for sure when the start of tax season will be. The IRS traditionally announces in early to mid-January when it will begin accepting and processing tax returns. Most military pay, including retired pay, is not taxed in Illinois.
States with flat income tax rates
Illinois provides a standard Personal Exemption tax deduction of $ 2,625.00 in 2024 per qualifying filer and qualifying dependent(s), this is used to reduce the amount of income that is subject to tax in 2024. State income tax return deadlines usually mirror the federal deadline in mid-April, but exceptions exist. Residents of Virginia, for example, generally generally have until May 1 to file their state returns. Check with your state’s tax and revenue authority for further information.
- Estates over that amount must file an Illinois estate tax return and face tax rates up to 16%.
- Plus, investors can get more tax-free growth when the market bounces back.
- But, we cannot resolve these inequities at the state level, as states are competing with one another for economic development.
- 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.
- 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.
- The 2025 standard deduction across filing statuses has also been raised from the 2024 deduction.
What about sales and other taxes?
- Here are some key tax reduction programs in Illinois, and how to qualify.
- This tool is freely available and is designed to help you accurately estimate your 2025 tax return.
- The EITC rates and thresholds are adjusted annually to reflect changes in the economy and cost of living.
- There are three types of residency statuses when it comes to Illinois state tax.
- This blog and the information contained herein does not constitute tax client advice.
However, it does offer several tax credits and exemptions based on specific circumstances, such as the Earned Income Credit and property tax credits. Married couples filing jointly with an adjusted gross income (AGI) over $500,000, and taxpayers in all other filing statuses with AGI over $250,000, can’t claim the education expense credit. The state of Illinois offers a personal exemption and tax credits, such as the earned income tax credit and the education expense credit.
Illinois: Federal Retirement Plan Thresholds in 2023
- For single taxpayers and married individuals filing separately in tax year 2025, the standard deduction is rising to $15,000 — up $400 from 2024.
- Many of my friends live in Florida six months a year (or less) and avoid the 4.95% Illinois income tax.
- If you have a dollar or $1 billion that is subject to Illinois income tax, you owe 4.95% of that money to the state.
- 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.
- So if you live in Illinois and work in Iowa, Kentucky, Michigan or Wisconsin, you’ll have to pay tax to your home state.
- And some states apply their tax rates to taxable income, while others use adjusted gross income.
Your employer will also withhold money from each of your paychecks to put toward your federal income taxes. The percentage that’s withheld will depend on things such as your income, your filing status (single, married filing jointly, etc.) and any tax credits you indicate on your W-4 form. Illinois’ flat income tax rate means that every resident, regardless of income level, pays il income tax brackets the same individual income tax rate of 4.95 percent.
If you have a qualifying child or relative, you might qualify for the Child Tax Credit. Answer a few questions with the CHILDuctor and you will get your answer. Prepare and e-File your Illinois Income Taxes here on eFile.com together with your Federal Income Tax Return. Per IRS/State regulation – not eFile.com – an Illinois state tax return can only be e-Filed together with an cash flow IRS tax return.
