Illinois

 
 

The facts on Illinois’ Tax Climate

Illinois's Individual Income Tax System
Illinois's personal income tax system consists of a flat rate of 5%. That rate ranks 20th lowest among states levying an individual income tax. Illinois's income tax collections per person were $664 in 2010 which ranked 18th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Illinois's Corporate Income Tax System
Illinois's corporate income tax system consists of a flat rate of 9.5%. That rate ranks 4th highest among states levying an corporate income tax. Illinois's corporate tax collections per person were $106 in 2010 which ranked 24th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita

Illinois Sales and Excise Taxes
Illinois levies a 6.25% general sales or use tax on consumers, which is above the national median of 6%. The average local sales tax rate is an additional 1.88%. Illinois's state and local governments collect $666 per person in general sales taxes and $663 per person in excise taxes, for a combined figure of $1329, which ranks 24th highest nationally. Illinois's gasoline tax stands at 39.1¢ (5th highest nationally), while its cigarette tax stands at $1.98 (15th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

Illinois Property Tax Collections Relatively High
Illinois's state and local governments collected approximately $1827 per person in property taxes, which ranks 10th highest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 25th in Illinois

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Illinois taxpayers worked until April 25th (5th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Wisconsin, April 20th (ranked 11th latest nationally); Iowa, April 9th (ranked 17th earliest nationally); Missouri, April 8th (ranked 14th earliest nationally); Kentucky, April 6th (ranked 10th earliest nationally); and Indiana, April 13th (ranked 25th earliest nationally).

Full study of Tax Freedom Day, nationwide and in each state

Illinois's State and Local Tax Burden In Line with National Average

Illinois's 2010 tax burden of 10.2% ranks 11th highest out of 50 states, and is above the national average of 9.9%. Illinois's taxpayers pay $4512 per capita in state and local taxes.
Illinois's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009

Illinois's 2013 Business Tax Climate Index Ranks 29

Illinois ranks 29th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Wisconsin, 43rd, Iowa, 42nd, Missouri, 16th, Kentucky, 24th, and Indiana, 11th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)

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