Tool | October 2017

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, sin products, property, and more -- across the U.S.

Illinois

Add to State Compare List | View List
(0) selected | Compare up to 5

The Bottom Line
Map of Illinois

Least Tax-Friendly

Illinois has been struggling with budget deficits for a while, and in July 2017 raised its flat tax on income from 3.75% to 4.95%. And the bad news doesn’t stop there. Property taxes in Illinois are the second-highest in the nation and state and local sales taxes are steep in the Prairie State, one of Kiplinger's top ten least tax-friendly states. In some areas, the combined rate can be as high as 10% — among the highest sales tax rates in the U.S.

Sales Tax

6.25% state levy. Localities can add as much as 4.75%, and the average combined rate is 8.64%, according to the Tax Foundation. Food, prescription drugs and non-prescription drugs are all taxed at 1% by the state; candy and soda, no matter where they're purchased, are taxed at 6.25%.

Income Tax Range

There is a flat rate of 4.95% of federal adjusted gross income after modifications.

See Kiplinger.com’s Retiree Tax Map to learn how Illinois taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.34 per gallon.
Some counties and cities have additional taxes. Some biofuel blends enjoy tax breaks.
Diesel: $0.38 per gallon.

Property Taxes

The median property tax on Illinois' median home value of $173,800 is $3,995.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Illinois.

Vehicle Taxes

Sales tax is 6.25% and up, depending on locality, on purchases of new cars. Private purchases of used cars are subject to a lower use tax that can vary by the age of the vehicle.

Sin Taxes

Beer and cider with an alcohol content of 0.5% to 7%: $0.23 per gallon
Wine: $1.39 per gallon
Liquor: $8.55 per gallon

Cigarettes and little cigars: $1.98 per pack,Chicago levies an additional $1.15 tax per pack, Cook County has an additional tax of $3.00 and Evanston levies one of $0.50
Moist snuff: $0.30 per ounce
Other tobacco products: 36% of the wholesale price. E-cigarettes/juice: Chicago has an excise tax of $0.80 per unit plus $0.55 per mL. Cook County has an excise tax of $0.20 per mL

Travel Taxes

Hotels: 6%. Additional taxes are levied by local governments. The combined rate in Chicago tops 16%.

Rental cars: 5%, with additional taxes levied by local governments.

Taxes On Wireless Service

17.84%

Inheritance and Estate Taxes

There is no inheritance tax. Illinois has an estate tax with a $4 million exemption. The maximum estate-tax rate is 16%.

About our methodology