What is the tax rate for partnerships?
Partnerships pay 1.5% Personal Property Tax Replacement Income Tax (replacement tax). Partnerships are subject to the replacement tax, but do not pay the regular Illinois income tax. Generally, income from a partnership is passed on to the partners. The partners must include this income in their federal adjusted gross income (for individuals) or federal taxable income (for other taxpayers). This is the starting point for Illinois income tax purposes and where the regular income tax is paid.
