However, on each of the other components, Illinois ranks in the bottom third of states due to high rates and relatively nonneutral tax structures. To file a tax return in Illinois, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date. As of illinois tax rate 2022 January 1, 2022, Mississippi has completed the phaseout of its 3 percent individual income tax brackets. The state has been slowly eliminating its lowest tax bracket by exempting $1,000 increments every year since 2018.

Individual Income Tax Forms

Illinois does not have tax brackets, so calculating your rate should be pretty simple. If you have a dollar or $1 billion that’s subject to Illinois income tax, you owe 4.95% of that money to the state. In the state capital of Springfield, 112% of property taxes go towards public pensions. Each household would have to pay $38,813 to eliminate all state and local pension debt.

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• The cigarette excise tax in Illinois is $2.98 per pack of 20.
• For example, a corporation in Rhode Island may deduct tax paid at a 7 percent flat rate against the 21 percent federal corporate income tax, reducing its federal rate to 19.53 percent and a combined rate of 26.53 percent.
• The only exception is railroad unemployment.More information is on the Illinois Department of Revenue’s website.
• A state income tax is a tax on income earned in that state.
• As bad as the tax burden is, Amendment 1 on the ballot Nov. 8 would guarantee Illinoisans’ total tax burdens continue to grow as pensions crowd out a greater share of state and local spending.

State and Local Sales Tax Rates, 2016

This means that taxpayers do not have to pay taxes on this income. For small businesses, managing taxes, accounting and everything legal is just a pain. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. Those earning between $13,900 and $215,400 are subject to marginal tax decreases as the corresponding rates decreased from 5.9 percent and 6.33 percent to 5.85 percent and 6.25 percent, respectively.

Illinois 2022 Tax Rates

In the following tables, we have compiled the most up-to-date data available on state individual income tax rates, brackets, standard deductions, and personal exemptions for both single and joint filers. Following the tables, we document notable individual income tax changes implemented in 2025. The historic maps appear as they were originally published early in the applicable tax year; they have not been updated for changes enacted in those years that were retroactively applicable as of the beginning of those tax years. The historic tables, however, have been updated to account for retroactive changes.

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. If your state tax witholdings are greater then the amount of income tax you owe the state of Illinois, you will receive an income tax refund check from the government to make up the difference. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by https://torettofactory.com/introduction-to-bookkeeping-and-accounting-2-6/ each package. Tax-Rates.org provides easy access to five of the most commonly used Illinois income tax forms, in downloadable PDF format.

Where To Send Your Illinois Tax Return

Mississippi moved to a flat individual income tax structure as a result of H.B. Effective January 1, 2023, the 4 percent tax on taxable income between $5,000 and $10,000 was eliminated, leaving a single rate of 5 percent on income exceeding $10,000. The flat rate is scheduled to phase down to 4.7 percent in 2024, 4.4 percent in 2025, and 4 percent in 2026.

State and Local Sales Tax Rates, Midyear 2018

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. In March 2024, legislation was enacted reducing Utah’s individual and corporate income tax rates from 4.65 to 4.55 percent, retroactively effective as of January 1, 2024. Forty-one taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.

• Single tax filers with taxable income up to $27,272 (double if filing jointly) would have been taxed at a rate of 2.55 percent.
• Unlike the federal government and many other states, Illinois does not have tax brackets that impose higher rates on people who earn more.
• Their prominence in public policy considerations is further enhanced by individuals being actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes.
• They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.

Arizona joined the growing list of states with a flat individual income tax structure, one year earlier than originally anticipated. 1828, tax triggers were established that set the state on a course to a 2.5 percent flat rate subject to reaching specified revenue targets. As part of its comprehensive tax reform, effective January 1, 2024, Iowa consolidated Legal E-Billing its four individual income tax brackets into three (H.F. 2317). As a result, its top rate decreased from 6 percent to 5.7 percent.