Income Tax Rates By State

Illinois currently imposes a flat individual income tax rate of 4.95% under the state’s current constitution. The new legislation places a measure on the November 2020 ballot that would amend the Illinois Constitution to allow a graduated personal income tax. If the amendment passes, the new graduated rates will be effective for tax years beginning on or after January 1, 2021, and will range from 4.75% to 7.99%.

This new legislation would also increase the corporate income tax rate from a flat 7% rate to a flat 7.99% rate, also effective for tax years beginning on or after January 1, 2021. Like the income tax rate changes, the corporate rate will only become effective if Illinois voters approve the ballot measure in 2020.

Proposed Illinois Progressive Income Tax Rate Effective January 1, 2021

Single

Income Over       Income up to           Rate

$o                          $10,000                   4.75%

$10,000               $100,000                 4.90%

$100,000             $250,000                4.95%

$250,000             $350,000                7.75%

$350,000             $750,000                7.85%

$750,000              and up                     7.99%

Joint

Income Over       Income up to           Rate

$o                          $10,000                   4.75%

$10,000               $100,000                 4.90%

$100,000             $250,000                4.95%

$250,000             $500,000                7.75%

$500,000             $1,000,000             7.85%

$1,000,000          and up                      7.99%