Disclaimer: This calculator gives you an estimate based on tax rates and details found online. These rates may change over time. For the most accurate and up-to-date information, please check the official IRS website and your state’s tax website. Always talk to a tax expert for advice about your personal tax situation.
How We Calculate the Result
We start with your total household income and subtract contributions to retirement accounts like 401(k) and IRA, as well as any itemized deductions or the standard deduction—whichever is higher. We also subtract state personal exemptions, which are fixed at $2,250 per person in Illinois.
After all deductions are applied, the remaining amount is your taxable income. Illinois has a flat income tax rate of 4.95%, so your Illinois state income tax is simply 4.95% of that taxable income. We also compare your income against federal filing thresholds to check whether you’re required to file federal taxes.
About Illinois Income Tax
Illinois uses a flat income tax system, which means everyone pays the same 4.95% on their taxable income, no matter how much they earn. This makes tax calculations more straightforward than in states with multiple tax brackets.
The state allows some deductions and exemptions:
- The standard deduction is $2,750.
- You can also deduct your 401(k) and IRA contributions.
- Each personal exemption is worth $2,250.
You must file Illinois state income tax if your income is above the federal minimum thresholds, which change based on your age and filing status. Illinois does not offer many tax credits, but the system is easier to understand compared to progressive tax states.
Frequently Asked Questions
What is the income tax rate in Illinois?
Illinois has a flat income tax rate of 4.95%, meaning everyone pays the same percentage on taxable income. Whether you earn $30,000 or $300,000, the tax rate remains the same. This makes calculating Illinois taxes simpler compared to states with changing tax brackets.
When do singles start paying Illinois income tax?
Single filers under 65 need to file if their income is at least $14,600. If they are 65 or older, the threshold rises to $16,550. If your income is at or above these limits, you’ll likely need to file and may owe Illinois income tax at 4.95%.
When do married filers start paying Illinois income tax?
Married couples filing jointly under age 65 must file if their income is at least $29,200. If one spouse is over 65, it increases to $30,750; if both are 65 or older, it’s $32,300. If income crosses these limits, they’ll likely pay 4.95% Illinois income tax.
Does Illinois allow itemized deductions?
Yes, Illinois lets you choose between itemized deductions or a standard deduction of $2,750. You can claim whichever is higher. This helps reduce the income that will be taxed at the 4.95% flat rate, potentially saving you money if your itemized deductions are high.
Are retirement contributions deductible in Illinois?
Yes, contributions to 401(k) and IRA accounts can be deducted when calculating Illinois taxable income. This helps lower the income on which you’ll pay tax. These deductions are available even with the flat tax rate, offering a small way to reduce your tax bill.