When filing an income tax return in Illinois, taxpayers begin with their federal adjusted gross income (AGI, or taxable income, is income minus certain deductions). From there, certain items may be added back in, and others may be subtracted. Among the most important items that are taxable federally but not in Illinois are il income tax brackets retirement and Social Security income, as well as distributions from a 529 college savings plan. You can claim 5% of the real estate tax you paid on your principal residence on your Illinois tax return.

Illinois Income Tax Returns

• If you live and work in the same state, you probably need to file only one state return each year if applicable.
• When you prepare your return on eFile.com this is all calculated for you.
• The IRS traditionally announces in early to mid-January when it will begin accepting and processing tax returns.
• The Income tax rates and personal allowances in Illinois are updated annually with new tax tables published for Resident and Non-resident taxpayers.
• The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Illinois’ and may have different rules.
• Together these are called FICA taxes, and your employer will pony up a matching contribution.
• A financial advisor can help you understand how taxes fit into your overall financial goals.

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. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.

Illinois Tax Tables 2025 – Tax Rates and Thresholds in Illinois

• Gov. JB Pritzker’s budget office just predicted that Illinois faces a $3 billion deficit next fiscal year, even before all the federal pandemic money has run out.
• In 2024, California, Hawaii, New York, New Jersey and Washington D.C.
• You must also meet basic rules such as having investment income below $11,000 and a valid Social Security number, and either meet the requirements for those without a child or meet all of the qualifying child rules.
• You can save time and money by electronically filing your Illinois income tax directly with the .
• However, it’s important to keep in mind that not everyone pays the highest tax rate and that state income taxes don’t make up the full picture when looking at overall tax burden.

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 2023 federal income tax brackets. For states with progressive tax systems, note that the dollar amounts in the income brackets apply to single filers; in many states, the income brackets double for those married filing jointly. And, as is the case for federal returns, the amount ledger account you’ll pay to your state is also a function of your filing status, whether you have dependents, and whether you qualify for tax deductions and credits. This new version no longer asks you to list total allowances, as it instead uses a five-step process that lets you enter personal information, claim dependents and indicate any additional income or jobs.

Illinois: Federal Retirement Plan Thresholds in 2025

Property taxes vary by municipality, but northeastern Illinois — including Chicago — has significantly higher property taxes than the rest of the state. Estates over that Food Truck Accounting amount must file an Illinois estate tax return and face tax rates up to 16%. Certain tax deductions may reduce the taxable estate below the taxable limit, and property or assets left to the husband, wife or civil union partner or the decedent are not taxable.

View how much tax you may pay in other states based on the filing status and state entered above. As the 2023 tax filing season begins, practitioners should also keep in mind 2024 tax numbers and rates that will impact their clients for the current year. The IRS issued these numbers late last year through news releases and publications, of which the highlights are summarized in this blog. The federal standard deduction for a Head of Household Filer in 2025 is $ 22,500.00. The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00.