For each pay period, your employer will withhold 6.2% of your earnings for Social Security taxes and 1.45% of your earnings for Medicare taxes. Together these are called FICA taxes, and your employer will pony up a matching contribution. The Earned Income Tax Credit is currently 20% of the federal credit by the same name. For tax year 2024, the maximum state credit a person can claim is $1,566. The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses.
- From there, certain items may be added back in, and others may be subtracted.
- For example, if you pay a share of premiums for health insurance, life insurance or disability insurance through your company, that money will be deducted from your earnings.
- When filing an income tax return in Illinois, taxpayers begin with their federal taxable income.
- Illinois has a flat income tax rate which applies to both single and joint filers.
- The income tax rate in Illinois is 4.95%, after an increase from 3.75% in 2017.
- The Personal Exemption, which is supported by the Illinois income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses.
3 – Illinois Dependent Deduction
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Illinois Income Taxes
So while making those contributions will decrease your take-home pay, stashing cash in one of these tax-advantaged accounts means the money will grow tax-free. In the case of the FSA and HSA, your money is there for you to spend on medical expenses. If you want more money in your Illinois paycheck, aside from asking for a raise, you can also work overtime if your job allows it. Other forms of supplemental wages you can seek include bonuses, commission, stock options and prizes. Supplemental wages are taxed at the same rate as regular income in Illinois.
- If you have more than one job, you’ll need to split your allowances between your jobs.
- An alternative is to divide your allowances between the two jobs on the Form IL-W-4 you give to each employer, or you could claim all your allowances with one job and none with the other.
- In the case of the FSA and HSA, your money is there for you to spend on medical expenses.
- The Illinois Fair Tax was a proposed amendment to the Illinois state constitution that would have effectively changed the state income tax system from a flat tax to a graduated income tax.
- If you want to check the status of your Illinois tax refund, you can visit the Illinois Income Tax Refund page.
How do Illinois tax brackets work?
The standard deduction, which Illinois does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. The state of Illinois collects 66.5 cents for every gallon of regular gasoline. These taxes comprise a combination of sales tax, excise taxes paid at Certified Bookkeeper the pump and wholesaler/retailer taxes. A financial advisor can help you understand how taxes may impact your overall financial goals.
The Personal Exemption, which is supported by the Illinois income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. If your state tax witholdings are greater then the amount of income tax you owe the state of Illinois, you will receive an income tax refund check from the government to make up the difference. illinois income tax rate Previously, the tax rate was raised from 3% to 5% in early 2011 as part of a statewide plan to reduce deficits. If you expect to owe $500 or more on April 15th, you must pay your income tax to Illinois quarterly using Form IL-1040-ES.
How You Can Affect Your Illinois Paycheck
This site is a free public service not affiliated with the IRS or any governmental organization. The telecommunications tax is a tax on services including home phone lines, cell phones, television service and internet. It varies by location, but is generally about 7% of the price of service.
Overview of Illinois Taxes
Remember that Illinois may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Illinois income tax return. The 2.11% effective property tax rate in Illinois is second-highest in the nation, behind only New Jersey. That means the typical homeowner in the Prairie State pays 2.11% of their home value in property taxes. As simple as Illinois tries to make income tax, the state seems to take the opposite approach with sales taxes.