State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Illinois State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Illinois

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The Bottom Line
Flag of Illinois

Least Tax-Friendly

At first blush, the state's 4.95% flat income tax rate doesn't seem that steep when compared to other states' top tax rates. And that's true if you're talking about wealthy residents. But for middle-class taxpayers, the income tax rate is on the high end. Also note that Illinois voters rejected a proposal on the November 2020 ballot that would have dumped the flat tax in favor of a graduated income tax. Had it passed, the marginal tax rate for most middle-income residents would have dropped slightly to 4.9%. Residents of the Land of Lincoln also get no relief when it comes to property taxes, which are the second highest in the country, on average. Sales taxes are steep as well.

Income Tax Range

Illinois has a flat rate of 4.95% of federal adjusted gross income after modifications.

Sales Tax

6.25% state levy. Localities can add as much as 4.75%, and the average combined rate is 8.8%, according to the Tax Foundation.

Groceries: Taxable (1% state rate; additional local taxes may apply)
Clothing: Taxable
Motor Vehicles: Taxable
Prescription Drugs: Taxable (1% state rate; additional local taxes may apply)

Real Property Taxes

In Illinois, the median property tax rate is $2,165 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 52.01¢ per gallon (varies by location).
Diesel: 58.44¢ per gallon.

Sin Taxes

Cigarettes and little cigars: $2.98 per pack, Cook County has an additional tax of $3. Three localities, all in Cook County, add to that. According to the Campaign for Tobacco Free Kids, a pack purchased in Chicago has the highest total tax in the country: $7.16.
Snuff: $0.30 per ounce
Other tobacco products: 36% of the wholesale price
Vapor products: 15% of wholesale price; localities have additional taxes

Beer: $0.23 per gallon
Wine: $1.39 per gallon
Liquor: $8.55 per gallon

Marijuana: 10% of purchase price for marijuana at or below 35% THC, 25% for marijuana with THC greater than 35%, and 20% for cannabis-infused edibles, topical and inhalation products

Annual Car Taxes and Fees

An annual vehicle registration fee is imposed.

Estate and Inheritance Taxes

Illinois has an estate tax with a $4 million exemption. Estate tax rates are from 0.8% to 16%.


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