Illinois Tax

What is Illinois Income Tax?

Illinois income tax is levied by the state on the income you earn within a tax year in Illinois or income earned while you are a resident of Illinois. State income taxes vary by state and are a percentage of money that you pay to the state government. Similar to federal taxes, it is self-assessed.

The state of Illinois imposes a state level income tax. Read on to learn more about Illinois tax details, like Illinois income tax due dates, rates, and more.

Who Pays Illinois Tax?

If you earn an income or live in Illinois, you must pay Illinois income taxes. As a traditional W-2 employee, your Illinois taxes will be withheld and deposited from each paycheck automatically. You will see this on your paycheck, near or next to the federal taxes.

If you work remotely, you should pay taxes to the state in which the work is performed. Employers will generally also pay taxes on wages paid to these workers to the same state, even if the employer has no physical presence in that state. However, some states may require that workers are taxed based on their employer’s location.

How Do You Pay Illinois State Taxes?

To pay Illinois state taxes, visit the Illinois revenue website.

How Much Should You Pay in Illinois State Tax?

The Illinois state tax rate for individuals is 4.95% of net income. To determine the tax due for tax years ending on or after July 1, 2017, refer to Informational Bulletin FY 2018-02.

When are Illinois Tax Returns Due?

The state tax deadlines often coincide with the federal tax deadline, which typically is on April 15, unless it falls on a weekend or deemed otherwise by the IRS. View the IL tax return due date details.

How Do You Check If You Paid IL Taxes?

If you want to make sure your state taxes were paid, contact the Illinois Department of Revenue to see if your payment was received.

Deducting Illinois Income Taxes

If you pay Illinois income tax, the IRS allows you to claim a deduction on your federal tax return for them. You can claim a state income tax deduction if you itemize deductions on your federal return.

To determine if you should itemize your deductions, add up your calendar-year deductible expenses, including your state income tax expense, to see if the total is greater than the standard deduction amount for your filing status. If you are single you can claim a standard deduction of $12,200. So, if you pay more than $12,200 in state income taxes and other itemized deductions, then consider itemizing your taxes.

Due to the Tax Cuts and Jobs Act, state and local tax deductions, including state income taxes, are limited to $10,000 per year.

More Help with IL Tax

Understanding your tax obligation and potential federal deductions you can take. What’s even more time-intensive is how to deduct IL tax from your federal taxes as an itemized deduction.

So, get help with H&R Block Virtual! With this service, we’ll match you with a tax pro with Illinois tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your IL taxes, including federal deductions for paying state taxes.

Prefer a different way to file? No problem – you can find Illinois state tax expertise with all of our ways to file taxes.