Illinois Department of Revenue
 
 
Local Government
 
 
 
 
 

Income Tax

 
 

What is Illinois Income Tax?

Illinois Income Tax is a tax that is imposed on the privilege of earning or receiving income in or as a resident of the state of Illinois. This tax applies to income for each taxable year.

Who is liable for Illinois income tax?

This tax is imposed on every

  • individual,
  • trust,
  • estate, and
  • corporation.

What are the rates?

The current rate for individuals, trusts, and estates is 5 percent of net income. The current rate for corporations is 7 percent of net income.

What share do you receive?

Beginning February 1, 2011, local governments receive 6 percent of the net collections of all income tax received from individuals, trusts, and estates, and 6.86 percent of the net collections of all income tax received from corporations.  (Prior to February 2011, local governments received one-tenth of the net collections of all income tax received.)

Net collections are the total collections minus deposits that are made into the refund fund.

The amount that each municipality or county receives is based on its population in proportion to the total state population. The population figures are determined based on the latest census conducted by the United States Bureau of the Census and certified by the Office of the Secretary of State.

Approximately the third week of each month, the Illinois Department of Revenue certifies to the state comptroller the amounts to be allocated based on net collections from the prior month. This money is distributed through the Local Government Distributive Fund (LGDF).

 
 
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