The Illinois tax calculator is designed to provide a simple illlustration of the state income tax due in Illinois, to view a comprehensive tax illustration which includes federal tax, medicare, state tax, standard/itemised deductions (and more), please use the main 2020/21 tax reform calculator. Example #2: If you had $50,000 of taxable income, you’d pay 10% on that first $9,875 and 12% on the chunk of income between $9,876 and $40,125. For example, under Lang’s bill, the tax rate for the income of a single person ranging from more than $500,000 to $1 million would be 8.75 percent. Multiply the taxable income computed in step 4 times 3.75 percent to determine the amount of Illinois tax withholding. Example #2: If you had $50,000 of taxable income, you’d pay 10% on that first $9,875 and 12% on the chunk of income between $9,876 and $40,125. This document is in PDF format. Previously, the income tax rate for individuals was 3.75 percent and the rate for corporations was 5.25 percent. A deduction of $2,000 is allowed for each exemption claimed on your federal return. Overview of Illinois Taxes. 2 ** It's also important to keep in mind that Illinois' constitution still mandates the state's income tax be flat, meaning everyone -- from Oprah Winfrey to your neighbor -- pays the same rate. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies. The Illinois tax calculator is designed to provide a simple illlustration of the state income tax due in Illinois, to view a comprehensive tax illustration which includes federal tax, medicare, state tax, standard/itemised deductions (and more), please use the main 2020/21 tax reform calculator. [i] . It should take one to three weeks for your refund check to be processed after your income tax return is recieved. Illinois - Single Tax Brackets Illinois - Married Filing Jointly Tax Brackets Illinois has a flat income tax of 4.95% — All earnings are taxed at the same rate, regardless of total income level Business Income Tax: Effective July 1, 2017: Corporations – 7 percent of net income ; Trusts and estates – 4.95 percent of net income ; To determine the tax due for tax years ending on or after July 1, 2017, refer to Informational Bulletin FY 2018-02. And that contributes to Illinois’ long-term structural deficit. If Illinois were to raise its rates, it would be moving in the opposite direction of its neighbors. Former Vice President Joe Biden’s tax plan, as analyzed by the nonpartisan Tax Foundation, would take the top federal individual income tax rates from 37 percent to 49.4 percent, when including various proposals. You can also receive an additional $1,000 exemption if you or your spouse is 65 or older, legally blind, or both. It is currently imposed on all individuals receiving income in Illinois. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package. ** It's also important to keep in mind that Illinois' constitution still mandates the state's income tax be flat, meaning everyone -- from Oprah Winfrey to your neighbor -- pays the same rate. And … You can find all of Illinois' 2020 income tax forms on the, Once you've filled out your Illinois income tax return, you have several options for filing and paying your income tax. Tax-Rates.org provides a printable Illinois datasheet including an income tax table, a list of Illinois tax deductions, important URLs and addresses, and more. Illinois' first income tax rate was 2.5%, implemented in 1969 and in place through 1982. The Illinois income tax has one tax bracket, with a maximum marginal income tax of 4.95% as of 2020. 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