FY 2025-25, Sales Tax Rate Change Summary, Effective July 1, 2025

All cultivators, craft growers, and dispensaries will be subjected to review for quarter-monthly (accelerated) payment requirements as of January 1, 2020. Quarter-monthly (accelerated) payments are due on or before the 7th, 15th, 22nd, and the last day of each month that a tax liability has occurred. Each quarter-monthly (accelerated) payment will be the lower of either what is the tax rate in illinois 22.5% of the actual liability for the month or 25% of the liability for the same month of the preceding year. If you have more than one business that operates cultivation centers or dispensaries, you must register each business separately to report and pay the cannabis taxes.

$0.23 / gallon

• The median property tax amount is based on the median Cook County property value of $265,800.
• Whether you’re a full-year resident, part-year resident, or nonresident, TurboTax is here to help simplify the process.
• Illinois allows its counties and municipalities to impose their own sales taxes.
• Our enhanced efforts to protect Illinois taxpayers from identity theft and tax fraud have proven to be highly successful.
• Enter a U.S. address to find the exact sales tax rate, powered by TaxCloud’s Sales Tax API.

Illinois’ flat income tax rate means that every resident, regardless of income level, pays the same individual income tax rate of 4.95 percent. Nonresidents who work in Illinois also must pay income tax to the state, unless they live in Wisconsin, Iowa, Kentucky or Michigan. The only exception is railroad unemployment.More information is on the Illinois Department of Revenue’s website. Watch the video below to learn how to identify your 2024 federal income tax brackets. Illinois residents and non-residents earning income in the state must file an Illinois income tax return if their income exceeds the threshold based on filing status and personal exemption.

Prices from $1.00 to $47.80

• As such, FICA represents a critical element of the United States’ approach to social welfare, providing foundational financial security and healthcare benefits that many Americans rely on.
• To appeal the Cook County property tax, you must contact the Cook County Tax Assessor’s Office.
• From there, certain items may be added back in, and others may be subtracted.
• Cultivators must file separate returns for medical and adult use cannabis.

Estimated payments are due on April 15th, June 15th, September 15th, and January 15th of the following year. Penalties for insufficient estimated payments are calculated based on the amount and duration of underpayment. Those who cannot afford to pay their Illinois taxes in full can request an installment payment plan from the Department of Revenue.

Illinois Tax Guide 2025

In general, the rate ranges from 6.25% to over 8.50%, depending on where the vehicle is purchased. Owner-to-owner sales, however, are subject to a lower rate, which depends on the price of the vehicle and, in some situations, the model year. The Illinois Department of Revenue offers a variety of tools and resources to help taxpayers file state taxes. It also recommends using commercial tax preparation software and authorized providers for filing. Many people choose to use the same program they used to prepare their federal returns to simplify the process and ensure accurate filings. Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.

Income Sources

Tax on tangible personal property that is purchased outside Illinois but is titled and registered with an Illinois address is allocated to the municipal and/or county governments in which the title address is located. Use tax is a tax imposed on the privilege of using, in Illinois, any item of tangible personal property that is purchased anywhere at retail. However, the 1% rate applies specifically to “qualifying food.” Understanding what constitutes “qualifying food” is crucial to accurately calculating your tax burden. Generally, this includes grocery-type food items intended for home consumption.

• This means that no matter how much money you make, you pay that same rate.
• These property tax records are excellent sources of information when buying a new property or appealing a recent appraisal.
• Taxpayers use the IL-1040 form, which requires documentation such as W-2s and 1099s.
• While most states use a marginal bracketed income tax system similar to the federal income tax, every state has a completely unique income tax code.
• The federal standard deduction for a Head of Household Filer in 2025 is $ 22,500.00.
• Cannabis Cultivation Privilege Tax is due on the first sale of adult use cannabis by a cultivator or craft grower.

Illinois increased it’s corporate income tax from 7.3% to the current rate in January 2011. The Illinois corporate income tax is actually two separate taxes, one at 7% and a second stacked tax rate of 2.5%. Companies bookkeeping or individuals who wish to make a qualifying purchase tax-free must have a Illinois state sales tax exemption certificate, which can be obtained from the Illinois Department of Revenue .

Illinois: Federal EITC(Earned Income Tax Credits) Rates and Thresholds in 2025

The Illinois Department QuickBooks ProAdvisor of Revenue (IDOR) requires filing if income exceeds the standard exemption, which is adjusted annually for inflation. Illinois has a flat state income tax, meaning all taxpayers pay the same percentage regardless of income. This differs from states with progressive tax systems, where rates increase with earnings.

This guide breaks down the state and local tax structures as they apply to groceries, prepared foods, and other edible items. For those facing financial hardship, IDOR may consider an Offer in Compromise, allowing taxpayers to settle their debt for less than the full amount owed if they can prove an inability to pay. Wage garnishments and bank levies are possible consequences for unpaid taxes, so taxpayers struggling with payments should seek arrangements promptly. Communicating with IDOR can help prevent more severe enforcement actions. Employers withhold Illinois income tax based on state withholding tables.

Credits and Exemptions

If you sell remotely to customers in Chicago or Cook County, you might be wondering whether you need to collect Chicago sales tax and what the sales tax rate is. This article will break down all the important things you need to know about sales tax in Chicago, Illinois. The Cook County Tax Assessor is responsible for assessing the fair market value of properties within Cook County and determining the property tax rate that will apply. The Tax Assessor’s office can also provide property tax history or property tax records for a property. These property tax records are excellent sources of information when buying a new property or appealing a recent appraisal.