Whether you work in Chicago, Rockford, or somewhere else, let’s take a look at how getting paid works here. Illinois applies per-gallon alcohol excise taxes based on the alcohol content of the beverage being sold. Beer will generally be subject to a rate of 29 cents per gallon while liquor is subject to a rate of $8.55 per gallon.
- The income thresholds for the 2023 tax brackets were adjusted significantly — up about 7% — from 2022 due to record-high inflation.
- Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.
- Illinois has specific residency requirements for individuals to be considered residents for tax purposes.
- Taxes for the 2024 year are due by April 15, 2024, or October 2024 with a tax extension.
- This means that a portion of their income is not subject to taxation, resulting in potential tax savings.
Find our Illinois tax rate calculations above on this page for more information. The actual amount of income tax you will pay in the state of Illinois will vary. Illinois, as with other states, often allow taxpayers to make additions and subtractions to their federal taxable income. Many states also offer credits for families with children, charitable contributions, and environmental initiatives, for example.
IRS announces new tax brackets for 2024. What does that mean for you?
The state of Illinois collects 39.2 cents for every gallon of regular gasoline. The diesel tax rate is also quite high at 46.7 cents per gallon. The telecommunications tax https://www.bookstime.com/ 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.
- Each state, including Illinois, has its own set of tax brackets that determine the percentage of income that is subject to taxation.
- The Illinois State Tax Tables for 2023 displayed on this page are provided in support of the 2023 US Tax Calculator and the dedicated 2023 Illinois State Tax Calculator.
- Food, drugs and medical appliances are all subject to a statewide tax rate of 1% of purchase price, in addition to local taxes of up to 1.25%, for a total tax of up to 2.25%.
- This means that only the portion of your income between $10,001 and $50,000 would be subject to the 4.90% tax rate.
- There are seven federal income tax rates as set by the 2017 Tax Cuts and Job Act and they are applied progressively, meaning the more you earn, the higher percentage of taxes you pay from your income.
- The state of Illinois requires you to pay taxes if you’re a resident or nonresident that receives income from an Illinois source.
This allows non-residents to avoid paying double taxes on their wages. As far as local income taxes, there aren’t any, so as far as taxes go, you only have to worry about federal and state ones on illinois income tax your income. Still need to prepare and file an IL return for a previous Tax Year? You can complete and sign the forms here on eFile.com before you mail them to the Illinois Department of Taxation.
Illinois Sales Tax
This page shows Tax-Brackets.org’s archived Illinois tax brackets for tax year 2022. This means that these brackets applied to all income earned in 2022, and the tax return that uses these tax rates was due in April 2023. The state income tax rate in Illinois is under 5% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.