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 8.81 percent. Illinois’s tax system ranks 36th overall on our 2022 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. 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?

Does a Flat Income Tax Create Income Inequality?

April 28, 2014

Response to CBPP: Flat Income Taxes Don’t Endanger Public Finances or Create Inequality

April 28, 2014

Illinois Millionaire Tax Appears Stalled

April 11, 2014

Comparing All the Major Illinois Tax Plans in Brief

March 26, 2014

How much business income would be impacted by Illinois House Speaker Madigan’s Millionaire Tax?

March 26, 2014

Who Would Pay a Higher Illinois Income Tax?

March 25, 2014

Moving to a Progressive Income Tax Would Increase Taxes on the Majority of Illinois Employers

March 24, 2014

Illinois Speaker Madigan Proposes 3 Percent High-Earner Tax

March 21, 2014

New Soda Tax Proposed in Illinois

February 27, 2014

Illinois Considers Corporate Tax Cut

January 31, 2014

Sensibly Reforming the Tax Structure and Tax Incentive Policies of Illinois

January 17, 2014

Illinois Considers Further Income Tax Increases as Temporary Tax Nears Expiration

January 15, 2014

Should Nebraska Follow the Example of Illinois or Indiana?

January 10, 2014

Illinois Will Send State Spending Data with Tax Refund Checks

January 2, 2014

Tax Foundation Presents Seal to Five States for State Tax Information Transparency

December 16, 2013

Illinois Supreme Court Strikes Down “Amazon Tax”

October 18, 2013

Illinois Faces More Incentive Demands Due to High Corporate Rate

October 17, 2013

Five States Win Tax Foundation Tax Information Transparency Honors

April 15, 2013

SEC Slaps Illinois over Public Pension System Misrepresentations

March 15, 2013

After Illinois Tax Increase, State Farm Reportedly Moving Operations to Texas

February 15, 2013