Illinois Tax Calculator

Income Tax
4.95%
flat rate
Sales Tax
8.83%
avg (10.25% Chicago)
Property Tax
2.07%
2nd highest in US

Illinois Income Tax

Illinois uses a flat income tax rate of 4.95%, meaning every Illinois taxpayer pays the same percentage regardless of income. This rate applies to all taxable income after deductions. Illinois voters rejected a ballot measure in 2020 that would have switched to a graduated income tax system.

Illinois Sales Tax

Illinois state sales tax is 6.25%. With local taxes, the average combined rate is approximately 8.83%. Chicago has one of the highest combined rates at 10.25%. Groceries are taxed at a reduced rate of 1% (state only). Prescription drugs are exempt.

Illinois Property Tax

Illinois has the second-highest effective property tax rate in the nation at approximately 2.07%. Cook County (Chicago) property taxes are especially burdensome, with some areas exceeding 3%. Property tax funds local schools, which is why rates vary dramatically by school district. On a $300,000 home, Illinois property tax averages $6,210 per year.

The Illinois Flat Tax Debate

In 2020, Illinois voters rejected the "Fair Tax Amendment" that would have replaced the flat 4.95% rate with a graduated system with rates from 4.75% to 7.99%. Proponents argued it would shift the burden to high earners; opponents argued rates would inevitably increase for all brackets. The flat tax remains in the Illinois Constitution.

Illinois Property Tax Crisis

Illinois property taxes are a major concern for homeowners. The high rates are driven by the state's reliance on local property taxes to fund schools (Illinois ranks among the lowest in state funding for education), hundreds of overlapping taxing districts, and significant public pension obligations at the local level.

Cook County and Chicago Taxes

Chicago and Cook County residents face additional tax burdens including the Cook County sweetened beverage tax, Chicago's 9% amusement tax, and various city fees. The combined sales tax in Chicago (10.25%) is among the highest of any major US city.

Frequently Asked Questions

What is Illinois' income tax rate in 2026?
Illinois has a flat income tax rate of 4.95%. The Illinois Constitution requires a flat rate applied uniformly to all taxpayers. A 2020 ballot measure to allow graduated rates was rejected by voters. Illinois does not allow local income taxes.
Does Illinois tax retirement income?
Illinois is extremely retirement-friendly. The state exempts all retirement income from state income tax, including Social Security, pensions, 401(k) distributions, IRA withdrawals, and military retirement pay. This broad exemption makes Illinois one of the most tax-friendly states for retirees.
What is Illinois' sales tax rate?
Illinois has a 6.25% state sales tax rate. Local taxes add significantly, bringing the average combined rate to approximately 8.83%. Chicago has one of the highest combined rates at over 10%. Groceries and prescription drugs are taxed at a reduced 1% state rate.
Why are Illinois property taxes so high?
Illinois' effective property tax rate of approximately 2.07% is the second-highest in the nation. High rates are driven by heavy reliance on property tax to fund local services, especially schools, plus pension obligations for local government employees.
Does Illinois have an estate tax?
Yes. Illinois imposes an estate tax with a $4 million exemption, lower than the federal exemption of $13.61 million. The tax rate ranges from 0.8% to 16% on estates above the threshold. Illinois is one of about 12 states that impose their own estate tax.