Illinois

Tax Rate Range: Flat rate of 3% of federal adjusted gross income
Personal Exemptions: Single - $2,000; Married - $4,000; Dependents - $2,000
Standard Deduction: None
Medical/Dental Deduction: health insurance and long-term care insurance premiums are deductible.
Federal Income Tax Deduction: None
Retirement Income Taxes: Illinois does not tax distributions received from qualified employee benefit plans, including 401(K) plans; an Individual Retirement Account, (IRA) or a self-employee retirement plan; a traditional IRA that has been converted to a Roth IRA; the redemption of U.S. retirement bonds; state and local government deferred compensation plans; a government retirement or government disability plan, including military plans; railroad retirement income; retirement payments to retired partners; a lump sum distribution of appreciated employer securities; and the federally taxed portion of Social Security benefits.
Retired Military Pay: Not taxed.

State Tax Software

Military Disability Retired Pay:
Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Sales Taxes

State Sales Tax: 6.25% (1% on qualifying food, prescription & non-prescription drugs, medical appliances). Local government taxes can raise the total to a high of 8.5%.
Gasoline Tax: * 32.5 cents/gallon
Diesel Fuel Tax: 43.5 cents/gallon
Cigarette Tax: 98 cents/pack of 20 (In Chicago, the state and local rate is $3.66; Evanston is $3.30)
* Tax rates do not include local options - 5 cents in Chicago and 6 cents in Cook county.

Property Taxes

Taxes are imposed by local government taxing districts (counties, townships, municipalities, school districts, and special taxing districts. Most property in the state is assessed at 33.33% of its market value, except farmland which is based on its ability to produce income. Cook County has different criteria. Single family residences are assessed at 16%.
There are six different homestead exemptions (Click here for details).
General Homestead Exemption is available annually for owner-occupied residential property. The amount of exemption is the increase in the current year's equalized assessed value (EAV), above the 1977 EAV, upto a maximum of $5,000 ($6,000 in Cook County).
Senior Citizens Assessment Freeze Homestead Exemption allows senior citizens who have a total household income of less than $45,000, and meet certain other qualifications to elect to maintain the equalized assessed value (EAV) of their homes at the base year EAV thereby preventing any increase in that value due to inflation.
Homestead Improvement Exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $75,000. The exemption continues for four years from the date the improvement is completed and occupied.
Senior Citizens Homestead Exemption allows a $3,500 reduction in the EAV of the property that a person 65 years of age or older is obligated to pay taxes on, and owns and occupies, or leases and occupies as a residence. Exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $45,000. The exemption continues for four years from the date the improvement is completed and occupied.
Disabled Veterans' Exemption may be up to $70,000 of the assessed value for certain types of housing owned and used by a disabled veteran or his or her unmarried surviving spouse. The Illinois Department of Veterans' Affairs determines the eligibility for this exemption, which must be reestablished annually.
Senior Citizens Real Estate Tax Deferral Program allows persons age 65 or older, who have a total household income of less than $50,000 and meet certain other qualifications, to defer all or part of their real estate taxes and special assessments. The deferral is similar to a loan against the property's market value and a lien is filed on the property in order to ensure repayment to the deferral. The state pays the property taxes and then recovers the money, plus 6 percent annual interest, when the property is sold or transferred.
Information on the state's Circuit Breaker and Pharmaceutical Assistance programs can be found in the state's Web site. Click here.

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There is no inheritance tax and only a limited estate tax related to federal estate tax collection.
For further information, visit the Illinois Department of Revenue site or call 800-732-8866.