Taxes in Illinois

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 basicsHow 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?

Top Individual Income Tax Rate

4.95%

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State and Local Individual Income Tax Collections per Capita

$1726

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State and Local Tax Burden

11.1%

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Top Corporate Income Tax Rate

9.5%

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State Business Tax Climate Index Ranking

36

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State Sales Tax Rate

6.25%

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Average Local Sales Tax Rate

2.56%

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Combined State and Average Local Sales Tax Rate

8.81%

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State and Local General Sales Tax Collections per Capita

$1163

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State Gasoline Tax Rate (cents per gallon)

59.60¢

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State Cigarette Tax Rate (dollars per 20-pack)

$2.98

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

2.08%

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State and Local Property Tax Collections Per Capita

$2268

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