What is the tax rate for corporations?

What is the tax rate for corporations?

For tax years starting on or after January 1, 2011, Corporations pay 7% income tax and 2.5% replacement tax.

For tax years ending December 31, 2010 and prior, Corporations pay 4.8 % income tax and 2.5% 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.”

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