Illinois Tax Tables 2020 Tax Rates and Thresholds in Illinois

Available tax credits can reduce the amount of tax owed, however. Taxpayers are allowed to claim personal exemptions of $2,375 as of the 2021 tax year—the return filed in 2022. Illinois has a flat state income tax rate of 4.95%, which means that all taxpayers in Illinois must pay the same income tax rate, regardless of income level or filing status. There are personal exemptions that can range from $2,375 to $4,750, depending on whether you are single or filing it as a couple. The Income tax rates and personal allowances in Illinois are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Illinois Tax Calculator 2024.

Illinois Tax Rates, Collections, and Burdens

There are three types of residency statuses when it comes to Illinois state tax. They determine what portion of your income the state will tax. Our partners cannot pay us to guarantee favorable reviews of their products or services. The telecommunications tax is a tax on https://www.bookstime.com/ 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. Illinois offers a homestead exemption up to a maximum of $10,000 in Cook County and $6,000 in all other counties.

Sales Taxes

If you’re ready to find an advisor who can help you achieve your financial goals, get started now. If you have more than one job, you’ll need to split your allowances between your jobs. You can’t claim the same allowances with more than one employer in a single tax year.

iCalculator™ US

The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Illinois. 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 illinois income tax rate Income Tax Refund page. Tax-Rates.org provides easy access to five of the most commonly used Illinois income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Illinois tax forms library or the ‘s tax forms page. Illinois’ No. 2 in the nation property taxes illustrate the issue.

Illinois State Income Tax Tables in 2020

The Earned Income Tax Credit (EITC) is a significant tax credit in the United States, designed primarily to benefit working individuals and families with low to moderate income. As a refundable credit, the EITC not only reduces the amount of tax owed but can also result in a refund if the credit exceeds the taxpayer’s total tax liability. This makes the EITC a powerful tool for reducing poverty, incentivizing work, and providing financial support to those who need it most.

• Our partners cannot pay us to guarantee favorable reviews of their products or services.
• The EITC can have a significant impact on a family’s annual budget, offering relief and financial stability to millions of Americans each year including those in Illinois.
• Instead, 11.24% is the effective tax rate at which your income is evaluated.
• Available tax credits can reduce the amount of tax owed, however.
• Together these are called FICA taxes, and your employer will pony up a matching contribution.
• Itemized and standard deductions are not allowed in Illinois, which is consistent with the state’s flat tax system.

The credit amount varies based on the taxpayer’s income, marital status, and number of qualifying children, with the intention of providing greater assistance to families with children. 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. To simplify and standardize the calculation across states, we assume the taxpayer has only income from Wages, salaries, tips, etc Line 1 on federal Form 1040.

• You must pay tax to Illinois on any income you earn there if you work there and live in any other state except Wisconsin, Iowa, Kentucky, or Michigan.
• You may qualify for the federal EITC/EIC if your adjusted gross income (AGI) is under $63,398 (actual threshold varies by filing status and number of dependents).
• You can only claim the Illinois EITC/EIC if you qualify for it on your federal income tax return and it’s worth 30% of your federal EITC/EIC.
• Your AGI represents your income after adjustments are made to it.

The Illinois marginal tax rate used in our example calculation above on this page is 4.95%. That is the tax rate applied to each additional dollar of taxable income you earn. Since Illinois is a flat tax rate state, the nominal or official tax rate equals the marginal tax rate. The Illinois income tax rate increased from 3.75% to 4.95% effective July 1, 2017.

• The 2020 tax rates and thresholds for both the Illinois State Tax Tables and Federal Tax Tables are comprehensively integrated into the Illinois Tax Calculator for 2020.
• For example, candy and soda are generally subject to the higher “general merchandise” rate, but any candy containing flour is not, for sales tax purposes, classified as candy.
• They determine what portion of your income the state will tax.
• You can also pay estimated taxes every quarter to cover your bases with the IRS.
• One relatively easy but meaningful step policymakers can take to make future tax seasons less burdensome is to modernize their state’s nonresident income tax filing, withholding, and reciprocity laws.

The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses. Your AGI is your yearly income with a few deductions, which are commonly referred to as “above-the-line” deductions. These include items like contributions to specific types of retirement accounts, particular business costs for the self-employed, and particular educational costs. View how much tax you may pay in other states based on the filing status and state entered above. On top of that state sales tax, local governments can impose their own sales taxes, which can add to the costs of purchases made in different jurisdictions. Savings and investment are critical activities, both for individuals’ and families’ financial security and for the health of the national economy as a whole.