Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
The facts on Illinois’ Tax Climate
3.75%individual income taxFlat rate
7.75%corporate income taxFlat rate
$1,982property taxcollections per capita
Illinois's Individual Income Tax System
Illinois's individual income tax system consists of a flat rate of 3.75%. That rate ranks 40th highest among states levying an individual income tax. Illinois's state and local tax collections per person were $1,283 in 2013, which ranked 10th highest 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 7.75%, consisting of 5.25% which goes to the state general fund and 2.5% which goes to localities. That rate ranks 17th highest among states levying a corporate income tax. Illinois's state and local corporate income tax collections per person were $346 in 2013 which ranked 4th 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 5.95%. The average local sales tax rate is an additional 2.4%. Illinois's state and local governments collect $759 per person in general sales taxes and $716 per person in excise taxes, for a combined figure of $1,475, which ranks 24th highest nationally. Illinois's gasoline tax stands at 30.18 cents per gallon, 20th highest nationally, while its cigarette tax stands at $1.98, 16th 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 $1,982 per person in property taxes in 2013, which ranks 9th nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 29th in Illinois
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Illinois taxpayers have to work until April 29th (44th earliest nationally) to pay their total tax bill.
Illinois's State and Local Tax Burden Ranks 5th
Illinois's 2012 tax burden of 11% ranks 5th highest in the nation, and is above the national average of 9.9%. Illinois's taxpayers pay $5,235 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 2016 Business Tax Climate Index Ranks 23rd
Illinois ranks 23rd on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (36th), individual income taxes (10th), sales taxes (33rd), unemployment insurance taxes (39th), and taxes on property (45th), including residential and commercial property.
State Business Tax Climate Index (full study)
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