Illinois individual income tax
Discover Illinois's individual income tax, which applies to both residents and non-residents of the state. The tax is calculated based on an individual's federal-adjusted gross income and has a flat rate of 4.95%.
April 18
Return due in 2023
4.95%
Flat tax rate
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StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
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For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
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Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit MyTaxIllinois
What is Illinois income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Illinois on individuals that meet the taxable criteria.
Taxable incomes
Illinois taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Illinois has a flat tax rate of 4.95%
Standard deduction
Illinois does not have standard deduction.
Personal exemption
Personal exemption is $2,375 for the tax year 2022.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Illinois taxable income | Tax rate |
|---|---|
| Flat tax | 4.95% |
Individual income tax
The State of Illinois requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Illinois
Types of taxable incomes
The income types on which tax is levied are:
In Illinois, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Illinois, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Due
quarterly or annually
Pay taxes
Taxes in Illinois are due by 18 April, 2023. Go to the official Illinois Department of Revenue website.
If your tax liability is more than $1000 or you're exempt from withholding taxes, you are required to pay estimated taxes quarterly.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
Type of tax
flat tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Illinois refers to an individual's permanent home or place of residence in the state.
Illinois resident
An Illinois resident is someone who is domiciled in Illinois, or who maintains a permanent place of residence in the state for the entire year.
Illinois part-year resident
An Illinois Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Illinois is subject to state taxes.
Illinois non-resident
An Illinois Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Illinois sources are required to pay Illinois taxes. This includes income from Illinois properties and personal services performed in the state.
Frequently asked questions
Business entities in Illinois
There are several business entities in Illinois
Illinois LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time