The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States.
Illinois Tax Rates, Collections, and Burdens
How does Illinois’s tax code compare? Illinois has a flat 4.95 percent individual income tax rate. Illinois also has a 9.50 percent corporate income tax rate. Illinois has a 6.25 percent state sales tax rate, a 4.75 percent max local sales tax rate, and an average combined state and local sales tax rate of 8.82 percent. Illinois’s tax system ranks 36th overall on our 2023 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: How Does Your State Compare?
State Tax Data
Average Local Sales Tax Rate2.56%See 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
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Compare the latest 2023 sales tax rates as of July 1st. Sales tax rate differentials can induce consumers to shop across borders or buy products online.