Per IRS/State regulation – not eFile.com – an Illinois state tax return can only be e-Filed together with an IRS tax return. Instruction how to only prepare a IL state return on Purchases Journal eFile.com and then download, print sign and mail it in. The state of Illinois collects 66.4 cents for every gallon of regular gasoline.
Why You Need a Paycheck Calculator
Late filing can result in penalties and interest on unpaid taxes. It is crucial to file by the deadline to avoid these additional costs. You can file your taxes online, via mail, or with the assistance of a tax professional. Make sure to complete the appropriate forms for your income type. Some examples of above-the-line deductions are those for student loan interest, educator expenses, traditional IRA contributions and health savings account contributions.
- The standard deductions were raised to $15,450 (single) and $30,900 (married filing jointly).
- You can learn more about how the Illinois income tax compares to other states’ income taxes by visiting our map of income taxes by state.
- 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.
- For residents of Illinois, this is especially important because Illinois has a flat 4.95% state income tax that affects every worker the same, regardless of income level.
- The law also repealed previously enacted tax triggers, instead prescribing a rate reduction to 2.95 percent in 2026, and 2.9 percent in 2027 and beyond.
- Your marginal tax rate determines what you pay when you receive the next dollar of income—it represents the highest tax rate you pay for the year.
How Income Taxes Are Calculated
Illinois’ maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Illinois’ %. You can learn more about how the Illinois income tax compares to other states’ income taxes by visiting our map of income taxes by state. This means that no matter how much money you make, you pay that same rate.
During the year: withholding and estimated payments
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. There are seven federal individual income tax brackets; the federal corporate income tax system is flat.
Moreover, since every bit counts, you must not let this one go wasted and claim it if you qualify for it. Tax calculators consider federal, state, FICA, and other deductions, providing a more accurate estimate than simply knowing your tax bracket. Net pay is the amount of money left over after taxes and deductions, whereas gross pay is the total amount of earnings before 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 retirement and Social Security income, as well as distributions from a 529 college savings bookkeeping plan. Taxpayers whose federal adjusted gross income exceeds $250,000 ($500,000 for married couples filing jointly) are not eligible to claim this tax benefit. However, taxpayers should still be aware of exemptions and deductions that could mitigate their overall tax obligations. For example, standard deductions and personal exemptions can significantly reduce the taxable income. For example, if you paid $20,000 in taxes over the course of the year (including any payment you made when you filed your taxes), and your taxable income is $100,000, then your effective tax rate is 20%.
There are some food items that don’t count as a qualifying food. For example, candy and soda are generally subject to the higher “general merchandise” rate of 6.25%, but any candy containing flour is not, for sales tax purposes, classified as candy. The Personal Exemption, which is supported by the Illinois income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. Business owners need to consider various factors when filing taxes, such as allowable deductions, credits, and tax incentives that can lower their taxable income.
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. 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 each package.
We are an independent, advertising-supported comparison service. Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business.
Unlike states with complex tax brackets that increase rates based on income, Illinois’s flat tax system applies the same percentage to every taxpayer, simplifying calculations and filing. Read on for illinois income tax rate more on how tax brackets work, what the current tax brackets and federal income tax rates are, how to calculate your marginal and effective tax rates and how to manage your tax brackets to lower your tax bill. Hawaii significantly revised its individual income tax brackets under H.B. Starting January 1, 2025, the lowest rate of 1.4 percent will apply to single-filer income below $9,600 (up from $2,400 in 2024), while the highest rate of 11 percent will apply to income exceeding $325,000 (up from $200,000). Additionally, the bill doubled the standard deduction from $2,200 to $4,400 for single filers for tax years 2024 and 2025. Despite these changes, Hawaii still has one of the most complex bracket structures in the nation, with 12 brackets.