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State Tax Guide 2026

Illinois Income Tax

Illinois imposes a flat 4.95% income tax on all taxable net income — the same rate regardless of how much you earn. The Illinois Constitution requires a flat tax, though voters have periodically been asked to change it. Combined with high property taxes, the overall tax burden is significant.

4.95%
Income Tax Rate
Flat
Tax Type
2.08%
Avg Property Tax
6.25%
State Sales Tax

📊 Illinois Flat Tax: How It Works

Every dollar of taxable income is taxed at exactly 4.95% — no brackets, no phase-outs, no marginal rate calculation.

$50,000 income
$2,475 IL state tax
$100,000 income
$4,950 IL state tax
$250,000 income
$12,375 IL state tax

2026 Illinois Income Tax Rate

All Taxable IncomeRateWho Pays
$0 and above4.95%All taxpayers

Illinois Personal Exemption 2026

$2,425
Single
$4,850
Married Filing Jointly
$2,425
Per Dependent

Note: Illinois does not allow the federal standard deduction. The personal exemption above is subtracted from net income before calculating the 4.95% tax.

Illinois Property Tax 2026

Illinois has the 2nd highest property taxes in the nation, averaging 2.08% of assessed value. Cook County (Chicago) and the collar counties are particularly high.

CountyEffective RateTax on $300K Home
Cook (Chicago)2.10%$6,300
DuPage2.17%$6,510
Lake2.72%$8,160
Will2.52%$7,560
Kane2.76%$8,280

Key Illinois Tax Notes

Retirement Income
Illinois does NOT tax Social Security, pensions, 401(k)/IRA distributions, or military pay — a major benefit for retirees.
No Itemized Deductions
Illinois does not allow itemized deductions. Only the personal exemption reduces taxable income.
Property Tax Credit
5% of IL property taxes paid can be credited against your state income tax (non-refundable).
Earned Income Credit
18% of the federal EITC as an Illinois credit for qualifying low-income earners.
Chicago Surcharge
Chicago residents may face additional city-level taxes on services, parking, and other items.

Calculate Your Illinois Tax

4.95% flat rate makes it simple — see your exact IL tax and take-home pay now.

Open Illinois Tax Calculator →