FY 2025-12, Sales Tax Rate Change Summary, Effective January 1, 2025

22 Jul FY 2025-12, Sales Tax Rate Change Summary, Effective January 1, 2025

Seven other states and the District of Columbia assess a 16 percent top marginal estate tax rate on estates valued between $2 million (Massachusetts) and $10.04 million (Illinois). Connecticut is the only state with a flat estate tax rate of 12 percent. Combined with its high exemption value of $13.61 million, Connecticut has a well-structured estate tax that makes it suitable for possible reforms and eventual elimination.

Illinois motor fuel (gasoline) taxes

During the first year of the tax cycle, the property is assessed, reflecting the property value as of Jan. 1 of that year. During the second year, the actual tax bills for the prior assessment year are calculated and payments are collected from property owners (e.g., the tax for the 2014 assessment is paid in 2015). The standard deduction, which Illinois does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. You can use the income tax estimator to the left to calculate your approximate Illinois and Federal income tax https://www.bookstime.com/ based on the most recent tax brackets. 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.

Tax Brackets and Tax Rates

There are three types of residency statuses when it comes to Illinois state tax. Here are some key tax reduction programs in Illinois, and how to qualify.

• Click here to see the list of taxes and whether they are a fixed or location-based rate.
• Illinois provides a standard Personal Exemption tax deduction of $ 2,425.00 in 2022 per qualifying filer and qualifying dependent(s), this is used to reduce the amount of income that is subject to tax in 2022.
• Unlike the federal government and many other states, Illinois does not have tax brackets that impose higher rates on people who earn more.
• You can claim 5% of the real estate tax you paid on your principal residence on your Illinois tax return.
• The list changes periodically, so check back each year to ensure that the items you claim are appropriate for that year.

Filing Your Return

• Your AGI doesn’t account for any itemized or standard deductions or tax credits that you might also be eligible for.
• If you receive a federal extension of more than six months, you are automatically allowed that extension for Illinois.
• By statute, certain items that were indexed for inflation in the past are currently not adjusted.
• The 2024 tax rates and thresholds for both the Illinois State Tax Tables and Federal Tax Tables are comprehensively integrated into the Illinois Tax Calculator for 2024.
• You are not required to make estimated payments if you are 65 years or older and permanently living in a nursing home or a farmer.

While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. Most property in Illinois is assessed at 33.33% of its market value, except for farmland. Farmland is not assessed on its market value, but on its ability to produce income. 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. Technically, you don’t have just one “tax bracket” – you pay all of the Illinois marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar.

Property Tax Credit

The property tax credit is equal to 5% of the Illinois property tax paid on your primary residence. You can’t claim this credit if your federal AGI exceeds $250,000, or $500,000 if you’re married and file a joint return. In addition to the federal estate tax, with a top rate of 40 percent, 12 states and DC impose additional estate taxes, while six states levy inheritance taxes. Illinois has no state tax on inheritance, but you are required to file on all estates of $4 QuickBooks million or more. This means that no matter how much money you make, you pay that same rate.

This makes the EITC a powerful tool for reducing poverty, incentivizing work, and providing financial support to those who need it most. The credit amount varies based on the taxpayer’s income, marital status, and number of qualifying children, with the intention of providing greater assistance to families with children. In addition, Illinois has what is called an exemption il individual income tax rate allowance, which is a set amount that most people who earned a paycheck can knock off their taxable income. The exemption for 2023 is as high as $4,850 for married couples filing jointly ($2,425 for single filers). Illinois’ income tax is imposed on every individual, corporation, trust and estate earning or receiving income in the state. The tax is a flat percentage of a taxpayer’s federal adjusted gross income.

Your 2023 Federal Income Tax Comparison

AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. A financial advisor can help you understand how taxes fit into your overall financial goals. 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.