The state of Illinois collects 39.2 cents for every gallon of regular gasoline. The diesel CARES Act tax rate is also quite high at 46.7 cents per gallon. In general, the rate ranges from 6.25% to over 8.50%, depending on where the vehicle is purchased. Owner-to-owner sales, however, are subject to a lower rate, which depends on the price of the vehicle and, in some situations, the model year.
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Income from Illinois sources if your illinois income tax rate adjusted gross income is higher than your Illinois exemption allowance. Illinois also has a set of tax agreements with the neighboring states of Iowa, Kentucky, Michigan and Wisconsin through which those states don’t tax Illinois residents who work within their borders. So if you live in Illinois and work in Iowa, Kentucky, Michigan or Wisconsin, you’ll have to pay tax to your home state. The Illinois K-12 education expense credit can knock up to $750 off of your tax bill if you spent more than $250 on qualified education expenses.
Federal Income Tax Tables in 2024
Beer will generally be subject to a rate of 23.1 cents per gallon while wine and liquor are subject rates of $1.39 and $8.55 per gallon, respectively. The cigarette excise tax in Illinois is $2.98 per pack of 20. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your Bookstime advisor matches to decide which one you feel is right for you. Illinois does not have tax brackets, so calculating your rate should be pretty simple. If you have a dollar or $1 billion that is subject to Illinois income tax, you owe 4.95% of that money to the state. For small businesses, managing taxes, accounting and everything legal is just a pain.
- Illinois has some of the highest average property and sales tax rates in the country.
- Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
- You might also have money subtracted from your paycheck if you contribute to a 401(k), a flexible spending account (FSA) or a health savings account (HSA).
- You can file for free using MyTax Illinois, our online account management program for taxpayers.
- Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
- No Illinois cities charge a local income tax on top of the state income tax, though.
- You must own and live in the residence, and your income must be below $500,000 (married filing jointly) or $250,000 (all other filers) to be eligible for this tax credit.
Cigarette Taxes and Cigarette Smuggling by State, 2022
You can file for free using MyTax Illinois, our online account management program for taxpayers. For more information, go to mytax.illinois.gov or visit our website. Our enhanced efforts to protect Illinois taxpayers from identity theft and tax fraud have proven to be highly successful. We will continue to combat the criminals attempting to steal your identity to file fraudulent tax returns while making every effort to get your tax refund to you as quickly as possible. All taxes the Illinois Department of Revenue administers are below.
That is, billionaires should pay more in taxes than they typically do, as they benefit massively from being able to operate from the U.S. But, we cannot resolve these inequities at the state level, as states are competing with one another for economic development. For example, many Illinoisans depart for fast-growing Florida, Tennessee or Texas because there are no state income taxes there.
Unlike the federal government and many other states, Illinois does not have tax brackets that impose higher rates on people who earn more. 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. The credit is limited to single taxpayers with federal AGIs of $250,000, or $500,000 if married and filing jointly. Some accounts, like a 401(k), FSA or HSA, allow you to make pre-tax contributions.