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Taxes

state income tax

Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.

There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.

In Illinois, residents are subject to a state income tax in addition to the federal income tax. The state income tax applies to the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. Illinois has a flat-rate income tax system, which means that all taxpayers are taxed at the same percentage rate regardless of income level. This rate is set by state law and can change with new legislation. As of the knowledge cutoff date in 2023, the individual income tax rate in Illinois is 4.95%. It's important for residents and entities in Illinois to be aware of their tax obligations and to file their state income tax returns by the due date each year to avoid penalties and interest.

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Taxes

state income tax

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Illinois State Code

Illinois State Code

Taxes

state income tax

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