Taxes
Illinois’ Tax System Overview:
State Sales Tax:
Imposed on a seller’s receipts from sales of tangible personal property for use or consumption. Tangible personal property does not include real estate, stocks, bonds, or other “paper” assets representing an interest.
Illinois sales tax four major rate structures include:
Property Tax:
The property tax is the largest single tax in Illinois, and is a major source of tax revenue for local government taxing districts. Property tax is a tax that is based on a property’s value. It is sometimes called an “ad valorem” tax, which means “according to value.” It is a local tax imposed by local government taxing districts (e.g., school districts, municipalities, counties) and administered by local officials (e.g. township assessors, chief county assessment officers, local boards of review, county collectors). Property taxes are collected and spent at the local level.
Only real property is taxed in Illinois.
Generally, the property tax cycle is a two-year cycle. During the first year, property is assigned a value that reflects its value as of January 1 of that year. During the second year, the tax bills are calculated and mailed and payments are distributed to local taxing districts.
Resources:
- Corporate Income Tax Rate: 9.5% (.0950) as of 2019 tax year
- Individual Income Tax Rate: 4.95% (.0495) as of 2019 tax year
- State Sales Tax: 6.25% general merchandise
State Sales Tax:
Imposed on a seller’s receipts from sales of tangible personal property for use or consumption. Tangible personal property does not include real estate, stocks, bonds, or other “paper” assets representing an interest.
Illinois sales tax four major rate structures include:
- Qualifying food, drugs, and medical appliances - 1%.
- Items required to be titled or registered - 7.25%.
- Other general merchandise - 6.25%.
- Motor fuel “prepaid sales tax" on motor fuels - $0.38 per gallon.
Property Tax:
The property tax is the largest single tax in Illinois, and is a major source of tax revenue for local government taxing districts. Property tax is a tax that is based on a property’s value. It is sometimes called an “ad valorem” tax, which means “according to value.” It is a local tax imposed by local government taxing districts (e.g., school districts, municipalities, counties) and administered by local officials (e.g. township assessors, chief county assessment officers, local boards of review, county collectors). Property taxes are collected and spent at the local level.
Only real property is taxed in Illinois.
Generally, the property tax cycle is a two-year cycle. During the first year, property is assigned a value that reflects its value as of January 1 of that year. During the second year, the tax bills are calculated and mailed and payments are distributed to local taxing districts.
Resources:
