Illinois Tax Tables 2022 Tax Rates and Thresholds in Illinois

illinois income tax brackets 2022

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. Illinois does not have standard illinois income tax rate and itemized deductions, nor do they use the federal standard deduction amounts. Long-term capital gains are taxed using different brackets and rates than ordinary income.

  • Here are some key tax reduction programs in Illinois, and how to qualify.
  • Most military pay, including retired pay, is not taxed in Illinois.
  • Our Illinois mortgage rates guide has important information about mortgages in the Prairie State that will help make the process of getting a mortgage a bit easier – whether you’re looking to purchase a property or refinance.
  • 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.
  • 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).
  • Illinois offers at least three credits in addition to the one that offsets taxes paid to other states.

The tax rate would rise to 3 percent for any portion of a sale price over $1.5 million. The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Illinois’ and may have different rules. Technically, you don’t have just one “tax bracket” – you pay all of the Illinois marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your Illinois tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. Below is a table of the general merchandise sales tax rates for all of the counties in Illinois. Your AGI doesn’t account for any itemized or standard deductions or tax credits that you might also be eligible for.

Child Tax Credit

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. The study cited New York City’s move in 2019 to increase its transfer tax on sales over $2 million, with the rate going as high as 3.9 percent for sales over $25 million. Following this change, the total number of construction permits issued for housing units declined in 2020 and 2021 during the pandemic but rebounded to pre-pandemic levels in 2022, according to the study. At the start of 2020, Seattle changed its transfer tax from a flat 1.28 percent to a tiered structure that ranges from from 1.1 percent for sales under $500,000 to 3 percent for sales above $3 million.

illinois income tax brackets 2022

Most commercial properties are already assessed at 2.5 times the value of residential properties, meaning every dollar of assessed value that comes out of the commercial tax base costs the residential base $2.50. The general merchandise sales tax applies to almost all other products purchased for use in Illinois. However most areas have additional local taxes between 0% and 5.25%. Cook, Kane and Warren counties are home to the state’s highest combined sales tax rates of 11.50%, 11% and 11%, respectively.

Tax Data Sources:

Illinois offers at least three credits in addition to the one that offsets taxes paid to other states. Find out what adjustments and deductions are available and whether you qualify. The telecommunications tax is a tax on services including home phone lines, cell phones, television service and internet.

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