In this second part of the halftime report for Tax Foundation Forum: Making Sense of Profit Shifting, we discuss the key takeaways from the first half of our series on profit shifting (read part I here). In this post, we...
The facts on Illinois’ Tax Climate
3.75%individual income taxFlat rate
7.75%corporate income taxFlat rate
$1985property taxcollections per capita
Illinois's Individual Income Tax System
Illinois's personal income tax system consists of a flat rate of 3.75%. That rate ranks 11th lowest among states levying an individual income tax. Illinois's state and local income tax collections per person were $1206 in 2012 which ranked 11th 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%. That rate ranks 17th highest among states levying a corporate income tax. Illinois's state and local corporate income tax collections per person were $272 in 2012 which ranked 7th 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 1.94%. Illinois's state and local governments collect $749 per person in general sales taxes and $676 per person in excise taxes, for a combined figure of $1425, which ranks 23rd lowest nationally. Illinois's gasoline tax stands at 30.7¢ (15th 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 $1985 per person in property taxes in 2012, which ranks 10th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 28th 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 2014, Illinois taxpayers worked until April 28th (7th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Wisconsin, April 22nd (ranked 13th latest nationally); Iowa, April 13th (ranked 19th earliest nationally); Missouri, April 11th (ranked 15th earliest nationally); Kentucky, April 8th (ranked 7th earliest nationally); and Indiana, April 16th (ranked 24th latest nationally).
Illinois's State and Local Tax Burden In Line with National Average
Illinois's 2011 tax burden of 10.2% ranks 13th highest out of 50 states, and is above the national average of 9.8%. Illinois's taxpayers pay $4658 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 2015 Business Tax Climate Index Ranks 31
Illinois ranks 31st 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, 41st, Missouri, 17th, Kentucky, 26th, and Indiana, 8th.
State Business Tax Climate Index (full study)
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