Illinois 2023 Sales Tax Calculator & Rate Lookup Tool

Those 65 and older whose household income is no more than $65,000 can apply to freeze the equalized assessed value of their home for one year. This includes infant formula, coffee and prepackaged, unheated meals. But some other products, including medicine and hygiene products, are still taxed. Illinois does not tax personal property, such as boats, cars and RVs. For Medicare tax, withhold 1.45% of each employee’s taxable wages. For employees who more than $200,000 per year, withhold an Additional Medicare Tax of 0.9% on the amount over $200,000.

Neither the graduated income tax nor the wealth tax plan have been formally introduced in Illinois yet. They’re still concepts, rather than proposals upon which lawmakers can vote. Illinois has an estate tax with a $4 million exemption. There are NO local corporate income taxes in Illinois.

Corporate income tax

Proponents argued that the proposal would make the Illinois tax code fairer, provide tax relief to most Illinoisans, better fund public goods and social services, and boost small businesses. Opponents argued it would open the door illinois income tax rate to future tax hikes, hurt businesses, drive businesses and wealthy residents to neighboring states, and place more revenues in the hands of an untrustworthy state government. The Illinois state sales tax rate is currently 6.25%.

You can register electronically through the MyTax Illinois website. You’ll also need to consider each employee’s exemptions, which is $2,000 per year. Additional exemptions are allowed if the employee is over 65 years old and/or legally blind. XThe accessibility of our website is taken very seriously. We strive to meet WCAG 2.1 AA Web Accessibility standards by routinely evaluating our website using automated evaluation tools and manual testing when required. As content changes we review and correct issues and are responsive to our users needs.

Illinois Estate and Inheritance Taxes

For IRS or Federal back taxes, access the tax forms here. Prepare and e-File your 2022 Illinois Income Taxes here on eFile.comtogether with your Federal Income Tax Return. Per IRS/State regulation – not eFile.com – an Illinois state tax return can only be e-Filed together with an IRS tax return.

You can claim a tax credit of up to 5.4% for the state unemployment tax you pay. Only you as the employer are responsible for paying FUTA taxes. In Illinois, state personal exemptions for single filers were equal to $2,000, which was third highest among its neighboring states that allowed income tax exemptions. Exemptions for those filing as a married couple were equal to $4,000 in 2015. Illinois regulations also allow filers to receive exemptions for dependents.

Illinois exemption allowance

You should refer to a professional adviser or accountant regarding any specific requirements or concerns. The Top 1 Percent takes home 65 times as much as the average taxpayer in the Bottom 99 Percent, but pays the same tax rate. The study found Illinois state and local governments levy the nation’s second-highest gas taxes. WalletHub’s property tax rankings also show Illinois is No. 2 in the nation. Renters feel this burden by taking on 80-90% of property tax hikes. If your employees have 401 accounts, flexible spending accounts or any other pre-tax withholdings, subtract them from gross wages prior to applying payroll taxes.

• This rate corresponds with the 2021 tax year for taxes paid in 2022.
• Employers are not responsible for paying the Additional Medicare Tax.
• Sales tax is collected by the state and the City’s share is distributed monthly.
• Property tax rates can vary substantially from locality to locality within a state.