Illinois Tax Guide 2026

Illinois Income Tax Overview

Illinois has a Flat 4.95% rate — Chicago adds local taxes. When combined with federal income tax and FICA taxes, Illinois residents in the median income range of $72,205 typically face a combined effective tax rate of approximately 30% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

Illinois Sales Tax Rate 2026

Illinois's combined sales tax rate is 8.84%, which includes a state rate plus an average local rate. On a $100 purchase, you pay $8.84 in sales tax — and $44.20 on a $500 purchase. Rates can vary within the state based on county and city jurisdiction.

Property Taxes in Illinois

Illinois homeowners pay an effective property tax rate of 2.08% annually. On the Illinois median home price of $265,000, that means approximately $5,512 per year — or $459 added to your monthly mortgage payment. Illinois's property taxes are among the highest in the US, which is an important consideration when comparing the cost of homeownership across state lines.

Total Tax Burden for Illinois Residents

When calculating the total tax burden for a Illinois household earning $72,205 annually, you must add: federal income tax (approximately $8,665), FICA taxes (7.65% = $5,524), Illinois state income tax (approximately $2,502), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for Illinois Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND Illinois state income tax
• HSA contributions are deductible from both federal and state income tax in Illinois
• Check if Illinois has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check Illinois conformity