Illinois Tax Calculator
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.