Illinois Taxes 2025
Complete tax guide and OBBBA calculator for IL residents
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Illinois Tax Overview 2025
State Income Tax
4.95%
Flat rate structure
Combined Sales Tax
8.83%
State 6.25% + Local 2.58%
Avg Property Tax
2.27%
Second highest property tax rate in the nation
💼 Illinois Income Tax 2025
Illinois has a flat income tax rate of 4.95%.
When filing your Illinois state tax return, your income tax liability depends on your taxable income and filing status. Illinois uses a flat income tax structure.
Illinois Income Tax Quick Facts
🛒 Illinois Sales Tax 2025
Illinois's combined average sales tax rate is 8.83%, which includes both state and local components. The state sales tax rate is 6.25%, while local jurisdictions add an average of 2.58%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Illinois Property Tax 2025
Illinois's average effective property tax rate is 2.27%. Second highest property tax rate in the nation.
Property taxes in Illinois are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $5,675 | $473 |
| $400,000 | $9,080 | $757 |
| $600,000 | $13,620 | $1,135 |
OBBBA Tax Benefits for Illinois Residents
Illinois residents benefit greatly from the $40,000 SALT cap due to high property taxes.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Illinois residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for IL Residents:
Calculate Your Illinois Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Illinois resident.
Calculate My SavingsHow Illinois Compares
| Tax Type | IL Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 4.95% | 5.1% | Varies |
| Sales Tax | 8.83% | 7.12% | Above Avg |
| Property Tax | 2.27% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in Illinois?
Illinois has a flat income tax with rates of 4.95%. Illinois has a flat income tax rate of 4.95%.
What is the sales tax in Illinois?
The combined average sales tax rate in Illinois is 8.83%. This includes the state rate of 6.25% plus an average local rate of 2.58%.
How do OBBBA deductions benefit Illinois residents?
Illinois residents benefit greatly from the $40,000 SALT cap due to high property taxes. Illinois residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Illinois taxes due?
For tax year 2025, Illinois state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.