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What is the tax rate for corporations?

Answer #83 -- ( Published 08/04/2005 12:32 PM | Updated 07/12/2017 10:38 AM )

What is the tax rate for corporations?

For income received or accrued on or after January 1, 2015, check the Tax Rate Database for current tax rates.

Note: Due to a tax rate change that occurs during their tax year, taxpayers with tax years ending after December 31, 2014, and before December 31, 2015, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2015-09, Illinois Income Tax Rate Decrease, for more information.

For income received or accrued on or after January 1, 2011, and before January 1, 2015, corporations pay 7 percent income tax and 2.5 percent replacement tax.

Note: Due to a tax rate change that occurs during their tax year, taxpayers with tax years ending after December 31, 2010, and before December 31, 2011, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2011-09, Illinois Income Tax Increase, for more information.

For income received or accrued on or before December 31, 2010, corporations pay 4.8 percent income tax and 2.5 percent replacement tax.

The starting point for the Illinois Corporate Income Tax Return is federal taxable income, which is income minus deductions. Next, the federal taxable income is changed by adding back certain items (e.g., state, municipal, and other interest income excluded from federal taxable income) and subtracting others (e.g., interest income from U.S. Treasury obligations). The result is “base income.”

Small businesses (S-corps) who file the US Form 1120S have a different tax rate.

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