The late filing penalty is 2% of the tax due per month, up to 20%, while the late payment penalty starts at 2% for the first month, up to 15%. Interest on unpaid taxes accrues from the original due date, with a current rate of 3% per annum. Severe cases of intentional tax evasion may lead to criminal charges under Illinois law.

Illinois Head of Household Filer Tax Tables

The Earned Income Tax Credit is currently 20% of the federal credit by the same name. For tax year 2024, the maximum state credit a person can claim is $1,566. The Education illinois state income tax percentage Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses.

• Some lawmakers and advocacy groups have called for a move to a progressive tax system, which would introduce tax brackets and higher rates for higher earners.
• There are a few exceptions, including military pay you received as a civilian.Nonresidents — those who only live in the state because of military assignment — are not required to report military pay to Illinois.
• These plans allow monthly payments, though interest and penalties continue to accrue.
• Benefits of e-Filing your Illinois tax return include instant submission, error checking, and faster refund response times.
• Illinois has long been recognized for its unique approach to state income taxation, especially when compared to other states across the United States 🇺🇸.
• Some accounts, like a 401(k), FSA or HSA, allow you to make pre-tax contributions.
• Taxpayers disputing an assessment or decision by the Illinois Department of Revenue can appeal through the Illinois Independent Tax Tribunal or the Circuit Court.

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As of July 2025, there have been no changes to the Illinois flat income tax rate or the lack of tax brackets. However, tax policy is always a topic of discussion in the state legislature. Some lawmakers and advocacy groups have called for a move to a progressive tax system, which would introduce tax brackets and higher rates for higher earners. Qualifications include being 65 and older and having a household income of no more than $65,000.Contact your county assessor for information about exemptions and your county treasurer for information about deferrals. These plans are designed to encourage long-term savings by providing tax advantages. Contributions made to these plans are typically pre-tax, meaning they are deducted from the employee’s gross income before taxes are calculated.

Historic Tax Tables supported for Illinois

• By embedding key rates, worked examples, recapitulation by tax type, and limiting external links to essential official IDOR pages, this guide keeps the reader engaged and informed without needing to click away.
• The distinct components of FICA, namely Social Security and Medicare, each have specific rates and caps that determine the amount of tax levied.
• The general merchandise sales tax applies to almost all other products purchased for use in Illinois.
• While some neighboring states have recently changed their tax systems—such as Indiana lowering its flat rate to 3% and Iowa moving to a flat rate of 3.8%—Illinois has chosen to keep its approach steady.
• This consistency is important for residents, employers, and anyone considering a move to Illinois, as it provides predictability in financial planning.
• Connect with a TurboTax expert for personalized tax advice or to handle filing for you.

Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Illinois tax refund, you can visit the Illinois Income Tax Refund page. If your state tax witholdings are greater then the amount of income tax you owe the state of Illinois, you will receive an income tax refund check from the government to make up the difference. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to https://www.bookstime.com/blog/bakery-accounting very complex tax returns, so be sure to carefully compare the features offered by each package.

For the 2025 tax year, there have been no changes to the Illinois state income tax structure. The flat income tax rate remains at 4.95%, and there are still no tax brackets. This means that, unlike the federal tax system or the systems in many https://supremegutters.co.za/2024/12/31/what-is-total-manufacturing-cost-how-to-calculate/ other states, Illinois does not adjust the tax rate based on income levels. Some taxpayers should file even if their income is below the exemption threshold.

• Among the most important items that are taxable federally but not in Illinois are retirement and Social Security income, as well as distributions from a 529 college savings plan.
• Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.
• 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).
• Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
• The mechanism of FICA taxation involves a dual contribution system where both the employer and the employee contribute a set percentage of the employee’s income towards these programs.