Illinois
What's New
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ITEP Work in Action
November 1, 2018Cherokee Tribune & Ledger-News: Financial Watchdog: Pritzker’s Spending Promises Would Raise Taxes on Middle Class
The Institute on Taxation and Economic Policy says Illinois has one of the most regressive taxes in the nation, largely due to its flat income tax. In its annual “Who…
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ITEP Work in Action
October 25, 2018News and Tribune: In Indiana and Illinois, Taxes Hit Low-earners Hard
TERRE HAUTE -- Low-earning residents of Indiana and Illinois pay a greater share of state and local taxes than those in all other Midwestern states, and those in most states…
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blog
September 13, 2017State Rundown 9/13: The Year of Unprecedented State Budget Impasses Continues
This week, Pennsylvania lawmakers risk defaulting on payments due to their extremely overdue budget and Illinois legislators will borrow billions to start paying their backlog of unpaid bills. Governing delves…
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blog
July 11, 2017State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime
Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the… -
blog
June 28, 2017State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in… -
ITEP Work in Action
January 9, 2017Voices for Illinois Children: Fair Tax Bill Introduced
Representative Lou Lang introduced a fair tax rate structure (House Bill 689), which would provide over 99% of income taxpayers with a tax cut while raising $1.9 billion to prevent…
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press release
May 4, 2016ITEP Statement on Illinois Department of Revenue Analysis of House Bill 689
For Immediate Release: May 4, 2016 Contact: Jenice R. Robinson, 202.299.1066 X29, [email protected] Earlier today, the Illinois Department of Revenue (ILDOR) released an economic analysis of the tax changes… -
ITEP Work in Action
May 7, 2015Voices for Illinois Children: Avoid Cuts, Choose Revenue
Governor Rauner has proposed to close this massive gap through damaging cuts to essential programs and services that strengthen Illinois families, children, communities, and our economy — including child care… -
ITEP Work in Action
January 21, 2015Fiscal Policy Center: Fair For Whom? IL Taxes the Lowest Earners at the Highest Rates
As part of his campaign platform and “Jobs and Growth Agenda,” Governor Rauner has identified the need to “overhaul the tax code so that it’s fair to all taxpayers.” We…
Related Resources
ITEP Publications about Illinois
Reports about Illinois using ITEP data
All items referencing Illinois
By the Numbers
| Personal Income Tax Features | |
|---|---|
| Range of Tax Rates | 3.75% |
| Standard Deduction |
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| Personal Exemption | $2,150 |
| Dependent Exemption | $2,150 |
| Earned Income Tax Credit (EITC) | 10% Refundable |
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| Corporate Income Tax Features | |
|---|---|
| Range of Tax Rates | Significant exclusion for retirement income |
| Income Level at Which Top Rate Applies | N/A |
| Combined Reporting | 7.75% |
| Apportionment Factor (Payroll) | All |
| Apportionment Factor (Property) | Yes |
| Apportionment Factor (Sales) | 0% |
| Sales Tax Features | |
|---|---|
| State Sales Tax Rate | 6.25% |
| Average Local Sales Tax Rate | 1.75% |
| Average Combined State & Local Sales Tax Rate | 8.0% |
| State Sales Tax Treatment of Groceries | 1% |
| Local Sales Tax Treatment of Groceries | Taxed |
| Number of Services Taxed | 17 out of 168 surveyed (2007) |
| Streamlined Sales Tax Membership | No |
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| Property Tax Features | |
|---|---|
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| Other Tax & Revenue Features | |
|---|---|
| Gasoline Tax Rate (per gallon) | $0.307 |
| Diesel Tax Rate (per gallon) | $0.445 |
| Cigarette Tax Rate (per pack) | $1.98 |
| Estate or Inheritance Tax | Yes |
| Net Lottery Sales Per Capita | $171 (2010) |
| Tax Policy Oversight | |
|---|---|
| Tax Expenditure Report | Yes |
| Tax Incidence Analysis Capability | Personal income tax only |
Last updated January 13, 2015