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Taxes In Illinois

Illinois Tax Rates, Collections, and Burdens

How does Illinois’s tax code compare? How does Illinois’s tax code compare? Illinois has a flat 4.95 percent individual income tax rate. Illinois has a 9.5 percent corporate income tax rate. Illinois also has a 6.25 percent state sales tax rate and an average combined state and local sales tax rate of 8.86 percent. Illinois has a 1.95 percent effective property tax rate on owner-occupied housing value.

Illinois has an estate tax. Illinois also has a 66.5 cents per gallon gas tax rate and a $2.98 cigarette excise tax rate. The State of Illinois collects $7,379 in state and local tax collections per capita. Illinois has $13,094 in state and local debt per capita and has a 51 percent funded ratio of public pension plans. Overall, Illinois’s tax system ranks 37th on our 2024 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Illinois is no exception. The first step towards understanding Illinois’s tax code is knowing the basics. How does Illinois collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
4.95%See Full Study
State Local Individual Income Tax Collections per Capita
$1726Rank: 14
State and Local Tax Burden
11.1%Rank: 41See Full Study

Business Taxes

Top Corporate Income Tax Rate
9.5%See Full Study
State Business Tax Climate Index Ranking
36See Full Study

Sales Taxes

State Sales Tax Rate
6.25%Rank: 13See Full Study
Average Local Sales Tax Rate
2.56%See Full Study
Combined State and Average Local Sales Tax Rate
8.81%Rank: 8See Full Study
State and Local General Sales Tax Collections per Capita
$1163Rank: 31
State Gasoline Tax Rate (cents per gallon)
59.60¢Rank: 2
State Cigarette Tax Rate (dollars per 20-pack)
$2.98Rank: 11

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
2.08%Rank: 2
State and Local Property Tax Collections Per Capita
$2268Rank: 10

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