Skip to main content
Taxpayer Answer Center

Quick Links

Information For

About IDOR

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

What are the rates?

Effective July 1, 2017, income tax rates increased as follows:

What share do you receive?

Beginning August 1, 2017, local governments receive 6.06 percent of the net collections of all income tax received from individuals, trusts, and estates, and 6.85 percent of the net collections of all income tax received from corporations (35 ILCS 5/901 b). In addition, Public Act 100-23 also reduces distributions by 10% for FY-18 only.

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).