Illinois Tax Brackets for the Single Filing Type

So if you live in Illinois and work in Iowa, Kentucky, Michigan or Wisconsin, you’ll have to pay tax to your home state. The Illinois K-12 education expense credit can knock up to $750 off of your tax bill if you spent more than $250 on qualified education expenses. Sales Tax – Sales tax rate changes generally occur effective January 1 or July 1 of each year. Effective August 1, 2023, the state updated its economic nexus thresholds for marketplace facilitators. 171 (Act 15), the state removed the 200 transactions threshold and changed the dollar threshold from $100,000 in gross sales to retail sales, thereby excluding wholesale and resale transactions.

Certain tax deductions may reduce the taxable estate below the taxable limit, and property or assets left to the husband, wife or civil union partner or the decedent are not taxable. When filing an income tax return in Illinois, taxpayers begin with their federal adjusted gross income (AGI, or taxable income, is income minus certain deductions). From there, certain items may be added back in, and others may be subtracted. Among the most important items that are taxable federally but not in Illinois are retirement and Social Security income, as well as distributions from a 529 college savings plan. Itemized and standard deductions are not allowed in Illinois, which is consistent with the state’s flat tax system. Available tax credits can reduce the amount of tax owed, however.

Illinois Paycheck Calculator

High income earners earning over certain limits do not qualify for the personal exemption deduction though. The federal government taxes your income based on your filing status, taxable income, etc. In contrast to state tax, federal income tax is progressive and your income is split into multiple brackets where lower illinois income tax rate brackets are taxed at lower rates and higher brackets are taxed at higher rates. Illinois has a flat income tax rate which applies to both single and joint filers. The Federal Income Tax, in contrast to the Illinois income tax, has multiple tax brackets with varied bracket width for single or joint filers.

To claim either credit, taxpayers will need to provide the vehicle’s VIN and file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit, with their tax return. All taxes the 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). Click here to see the list of taxes and whether they are a fixed or location-based rate. 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.

Illinois Alcohol and Tobacco Tax

The state income tax system in Illinois only has a single tax bracket. However, there are multiple tax brackets for federal income tax. To use our Illinois Salary Tax Calculator, all you need to do is enter the necessary details and click on the “Calculate” button.

• Still need to prepare and file an IL return for a previous Tax Year?
• Qualifying deductions might include an itemized deduction, the Illinois standard deduction, exemptions for dependants, business expenses, etc.
• New employers in Oregon will face a higher unemployment insurance tax rate in 2024, with the new employer rate rising from 2.1 percent to 2.4 percent.
• Illinois offers at least three credits in addition to the one that offsets taxes paid to other states.
• The Illinois marginal tax rate used in our example calculation above on this page is 4.95%.
• The Social Security tax rate is 6.2% and the Medicare tax rate is 1.45% for both employers and employees.

The law consolidated the state’s seven tax brackets for individual income into two and reduced the top marginal rate from 6.75 percent to 6.5 percent. In 2023, the legislature further reduced this rate to 5.9 percent. Additionally, individual taxpayers will be required to use the same filing status on both federal and state returns. https://www.bookstime.com/ The top marginal individual income tax rate was reduced to 4.9 percent in 2022, and beginning in 2024, this rate will be reduced again to 4.4 percent. Through House Bill 1430, Act 196, the state’s unemployment insurance tax wage base will be $7,000, provided the unemployment trust fund balance is equal to or exceeds $600 million.