This article is not intended to provide tax, legal, or investment advice. This material has been prepared for informational purposes only, and should not be relied upon for tax, legal, or investment purposes. These topics are complex and constantly changing. The information presented here may be incomplete or out of date. Be sure to consult a relevant professional.
Illinois is one of the ten states in the US with a flat income tax rate. Regardless of income, all taxpayers are taxed at the same rate. In Illinois, it’s 4.95% as of 2022. In 2017, the flat rate was 3.75%.
Illinois imposes higher than average property and sales taxes. You can take a look at our table with Illinois sales taxes by county and city. Business owners and individual taxpayers in Illinois should pay income taxes since they may be penalized for tax evasion.
Keep reading the article to learn more about the Illinois income taxation system. In this article, readers will also learn about penalties for tax evasion in Illinois and how to not get in trouble with local authorities.
Income Taxes In Illinois
It’s easier to calculate taxes in Illinois because of the flat system. Regardless of your earnings, Illinois income rate is 4.95%. Compare paying taxes in Illinois to paying taxes in Idaho. The latter has a progressive system, so taxpayers must calculate their taxes similarly to how they calculate federal ones.
Idaho has five brackets, from 1% to 6.5%. So, Idaho taxpayers have to calculate their taxable income according to all five brackets, plus the filing status. According to the Illinois income taxation, you do one calculation. However, the system has flaws. Low income earners pay more in Illinois than many other regions with progressive income taxation.
Tax Credits In Illinois
Illinois has several significant credits. Typically, they reduce the total bill by some amount of money. An Illinois Property Tax Credit equals 5% of Illinois property tax paid on a principal residence. So, if in 2021, a taxpayer paid $1,000 in property, they may claim $50 (5%) on their income return.
Unlike deductions, credits allow claiming a specific percentage of the amount an individual has already paid. Claimable credits in Illinois enable taxpayers to lower their total bills significantly.
The Earned Income Tax Credit is 18% of the same federal credit. The Education Expense Credit offers parents a credit if they spent over $250 on eligible K-12 education expenses.
Sales Tax Illinois
The income tax offers simplicity to taxpayers when they calculate income taxes. But that’s not the case with sales taxes. Illinois has three brackets depending on what a person is purchasing:
- Food, drugs, and medical appliances. This category has a statewide tax of 1% of the purchase price, plus local taxes. Some food items belong to general merchandise, for instance, soda or candy.
- General merchandise. All products that don’t belong to food or vehicle categories belong to general merchandise and are subject to 6.25%. However, local governments also impose their sales income rates so that general ones may go up to 10.25%.
- Vehicles. The rate ranges from 6.25% to 8.50% or even higher. It depends on the purchase location. However, owner-to-owner sales typically have lower rates.
Check out the two tables below. They include sales rates by county and city.
Illinois County Sales Tax Rates 2022 (Including State + County)
The sales table shows a total of county + state sales rates.
| County | Illinois Rate, % | County Rate, % | Total Sales Tax, % |
| Adams | 6.25 | 0.25 | 6.5 |
| Alexander | 6.25 | 0 | 6.25 |
| Bond | 6.25 | 1.0 | 7.25 |
| Boone | 6.25 | 1.5 | 7.75 |
| Brown | 6.25 | 1.25 | 7.5 |
| Bureau | 6.25 | 1.0 | 7.25 |
| Calhoun | 6.25 | 1.75 | 8.0 |
| Carroll | 6.25 | 0.25 | 6.5 |
| Cass | 6.25 | 2.0 | 8.25 |
| Champaign | 6.25 | 1.25 | 7.5 |
| Christian | 6.25 | 1.0 | 7.25 |
| Clark | 6.25 | 1.0 | 7.25 |
| Clay | 6.25 | 0.5 | 6.75 |
| Clinton | 6.25 | 0 | 6.25 |
| Coles | 6.25 | 1.0 | 7.25 |
| Cook | 6.25 | 2.75 | 9.0 |
| Crawford | 6.25 | 0 | 6.25 |
| Cumberland | 6.25 | 1.0 | 7.25 |
| De Witt | 6.25 | 0 | 6.25 |
| DeKalb | 6.25 | 0 | 6.25 |
| Douglas | 6.25 | 1.0 | 7.25 |
| DuPage | 6.25 | 0.75 | 7.0 |
| Edgar | 6.25 | 2.0 | 8.25 |
| Edwards | 6.25 | 1.0 | 7.25 |
| Effingham | 6.25 | 0.25 | 6.5 |
| Fayette | 6.25 | 1.0 | 7.25 |
| Ford | 6.25 | 0.0 | 6.25 |
| Franklin | 6.25 | 2.0 | 8.25 |
| Fulton | 6.25 | 1.5 | 7.75 |
| Gallatin | 6.25 | 1.0 | 7.25 |
| Greene | 6.25 | 1.0 | 7.25 |
| Hardin | 6.25 | 2.0 | 8.25 |
| Henderson | 6.25 | 1.0 | 7.25 |
| Henry | 6.25 | 1.5 | 7.75 |
| Iroquois | 6.25 | 0.25 | 6.5 |
| Jackson | 6.25 | 1.0 | 7.25 |
| Jasper | 6.25 | 1.0 | 7.25 |
| Jefferson | 6.25 | 0.5 | 6.75 |
| Jersey | 6.25 | 1.75 | 8.0 |
| Jo Daviess | 6.25 | 1.0 | 7.25 |
| Johnson | 6.25 | 1.5 | 7.75 |
| Kane | 6.25 | 0.75 | 7.0 |
| Kankakee | 6.25 | 0 | 6.25 |
| Kendall | 6.25 | 1.0 | 7.25 |
| Knox | 6.25 | 1.5 | 7.75 |
| Lake | 6.25 | 0.75 | 7.0 |
| Livingston | 6.25 | 1.0 | 7.25 |
| Logan | 6.25 | 2.0 | 8.25 |
| Macon | 6.25 | 1.5 | 7.75 |
| Macoupin | 6.25 | 1.0 | 7.25 |
| Madison | 6.25 | 0.6 | 6.85 |
| Marion | 6.25 | 1.25 | 7.5 |
| Marshall | 6.25 | 0 | 6.25 |
| Mason | 6.25 | 1.0 | 7.25 |
| Massac | 6.25 | 0 | 6.25 |
| McDonough | 6.25 | 1.75 | 8.0 |
| McHenry | 6.25 | 0.75 | 7.0 |
| McLean | 6.25 | 0 | 6.25 |
| Menard | 6.25 | 2.0 | 8.25 |
| Mercer | 6.25 | 1.0 | 7.25 |
| Monroe | 6.25 | 1.25 | 7.5 |
| Montgomery | 6.25 | 1.0 | 7.25 |
| Morgan | 6.25 | 1.0 | 7.25 |
| Moultrie | 6.25 | 0.5 | 6.75 |
| Ogle | 6.25 | 0 | 6.25 |
| Peoria | 6.25 | 1.0 | 7.25 |
| Perry | 6.25 | 1.5 | 7.75 |
| Piatt | 6.25 | 1.0 | 7.25 |
| Pike | 6.25 | 1.50 | 7.75 |
| Pope | 6.25 | 0 | 6.25 |
| Pulaski | 6.25 | 0 | 6.25 |
| Putnam | 6.25 | 0 | 6.25 |
| Randolph | 6.25 | 1.0 | 7.25 |
| Richland | 6.25 | 1.5 | 7.75 |
| Rock Island | 6.25 | 1.0 | 7.25 |
| Saint Clair | 6.25 | 1.1 | 7.35 |
| Saline | 6.25 | 1.75 | 8.0 |
| Sangamon | 6.25 | 1.0 | 7.25 |
| Schuyler | 6.25 | 1.0 | 7.25 |
| Scott | 6.25 | 1.0 | 7.25 |
| Shelby | 6.25 | 1.0 | 7.25 |
| Stark | 6.25 | 1.25 | 7.5 |
| Stephenson | 6.25 | 0.5 | 6.75 |
| Tazewell | 6.25 | 0.5 | 6.75 |
| Union | 6.25 | 2.25 | 8.5 |
| Vermilion | 6.25 | 0.25 | 6.5 |
| Wabash | 6.25 | 1.0 | 7.25 |
| Warren | 6.25 | 1.0 | 7.25 |
| Washington | 6.25 | 0 | 6.25 |
| Wayne | 6.25 | 0.75 | 7.0 |
| White | 6.25 | 1.0 | 7.25 |
| Whiteside | 6.25 | 1.0 | 7.25 |
| Will | 6.25 | 0.75 | 7.0 |
| Williamson | 6.25 | 1.0 | 7.25 |
| Winnebago | 6.25 | 1.50 | 7.75 |
| Woodford | 6.25 | 2.0 | 8.25 |
| White | 6.25 | 1.0 | 7.25 |
| Whiteside | 6.25 | 1.0 | 7.25 |
| Will | 6.25 | 0.75 | 7.0 |
| Williamson | 6.25 | 1.0 | 7.25 |
| Winnebago | 6.25 | 1.5 | 7.75 |
| Woodford | 6.25 | 2.0 | 8.25 |
As you see, counties set different rates that impact the overall payment size a taxpayer must pay. Counties such as Woodford or Union set the highest payments.
Illinois City Sales Tax Rates 2022 (Including County + City)
This sales table shows the total of county + city sales taxation.
| City | Illinois Rate, % | County + City Rate, % | Total Sales Tax, % |
| Arlington Heights | 6.25 | 1.0 | 7.25 |
| Aurora | 6.25 | 2.0 | 8.25 |
| Berwyn | 6.25 | 4.5 | 10.75 |
| Bloomington | 6.25 | 2.5 | 8.75 |
| Bolingbrook | 6.25 | 2.25 | 8.5 |
| Champaign | 6.25 | 2.75 | 9.0 |
| Chicago | 6.25 | 4.0 | 10.25 |
| Cicero | 6.25 | 4.5 | 10.75 |
| Decatur | 6.25 | 3.0 | 9.25 |
| Des Plaines | 6.25 | 3.75 | 10.0 |
| Elgin | 6.25 | 2.25 | 8.5 |
| Evanston | 6.25 | 4.0 | 10.25 |
| Hoffman Estates | 6.25 | 3.75 | 10.0 |
| Joliet | 6.25 | 2.5 | 8.75 |
| Mount Prospect | 6.25 | 3.75 | 10.0 |
| Naperville | 6.25 | 1.5 | 7.75 |
| Normal | 6.25 | 2.5 | 8.75 |
| North Peoria | 6.25 | 1.0 | 7.25 |
| Oak Lawn | 6.25 | 3.5 | 9.75 |
| Oak Park | 6.25 | 3.75 | 10.0 |
| Orland Park | 6.25 | 3.5 | 9.75 |
| Palatine | 6.25 | 3.75 | 10.0 |
| Peoria | 6.25 | 2.75 | 9.0 |
| Rockford | 6.25 | 2.50 | 8.75 |
| Schaumburg | 6.25 | 3.75 | 10.0 |
| Skokie | 6.25 | 4.0 | 10.25 |
| Springfield | 6.25 | 3.5 | 9.75 |
| Tinley Park | 6.25 | 3.5 | 9.75 |
| Waukegan | 6.25 | 2.25 | 8.5 |
| Wheaton | 6.25 | 1.75 | 8.0 |
Some Illinois cities set additional taxation systems and taxpayers should be aware of this fact.
Property Tax Illinois
Illinois has one of the highest average effective property rates — 2.16%. Only New Jersey has a higher average. Homeowners in Illinois pay 2.16% of their actual home value. Several local authorities collect property tax:
- county governments;
- city governments;
- municipal transportation districts;
- mosquito abatement districts.
Overall, Illinois has around eight thousand authorities that may impose property taxes.
Estate Tax In Illinois
Estates worth less than $4 million are exempt from estate taxation. Estates worth more than $4 million file estate returns and might pay an estate rate up to 16%.
Note: filing a return on an estate doesn’t mean a taxpayer will end up paying estate taxes. Illinois has several claimable deductions and credits that reduce the estate’s value below $4 million.
Moreover, the estate passed to a spouse or decedent isn’t taxable. If you are confused about whether you are exempt from paying estate taxes or not, contact an accounting firm. It’s a company that helps individuals and business owners with their taxes.
Telecommunications Tax In Illinois
It’s a tax imposed on services that include:
- cell phones;
- home phone lines;
- television service;
- internet.
The rate varies by location. Typically, it’s around 7% of the service price.
Gasoline Tax Illinois
Illinois collects 39.2 cents on every gallon of regular gasoline, making this rate one of the highest in the US. The state also collects 46.7 cents per diesel gallon.
Alcohol And Tobacco Tax Illinois
Illinois has a per gallon alcohol system based on the alcohol type. The state collects 23 cents per gallon of beer, and $8.55 per gallon of liquor. Illinois also collects $2.98 per pack of cigarettes (20 per pack).
Penalties For Not Paying State Taxes In Illinois
Do not avoid paying taxes since the state will impose severe penalties. Here’s what you will have to pay if the state accuses you of tax evasion:
- the taxes due;
- interest on the taxes owed (interest keeps increasing);
- a penalty.
Typically, the penalty is 0.5% of what a taxpayer owes each month. If an individual keeps avoiding paying taxes, the state may confiscate or freeze their property:
- money from bank accounts,
- impose a lien on the property.
Moreover, the state may also garnish taxpayers’ wages. Eventually, Illinois may accuse a taxpayer of fraud. As a result, the taxpayer will have to serve a sentence in jail on top of owing money, interest, and a penalty to the state. In Illinois, tax evasion leads to up to five years in prison and fines of $100,000.
Professional Help
Undoubtedly, calculating taxable income, claiming all deductions and credits, and figuring out estate price and how much to pay is a tricky task. That’s why most taxpayers and businesses prefer working with CPAs or accounting companies.
An accounting company or a CPA in Illinois may help calculate taxable income, claim deductions and credits, prepare, and file taxes on the client’s behalf. Accountants help claim all deductions and credits to reduce the estate value too.
Working with accountants means paying Illinois income tax and other payments according to all rules. You will avoid the stress of preparing and filing documents.
Author: Charles Lutwidge
