Thirty-two states and the District of Columbia impose graduated-rate income taxes. The federal government also uses a graduated rate structure to determine federal income tax.
Illinois is one of nine states that still imposes a flat income tax, along with Indiana and Michigan.
What are the brackets and rates?
Under tax rates approved by the General Assembly, the tax rate would drop to 4.75% for the first $10,000 of income for single and joint filers. Income between $10,000 and $100,000 would be taxed at 4.9%, and the rate would remain at 4.95% for income between $100,000 and $250,000.
From there, single filers would be 7.75% for income between $250,000 and $350,000, and 7.85% for income between $350,000 and $750,000. Joint filers would be taxed at 7.75% on income between $250,000 and $500,000, and 7.85% on income between $500,000 and $1 million.
After that, all income for single filers that make over $750,000 or joint filers that make over $1 million annually will be taxed at 7.99%.
The governor also proposes increasing the current property tax credit by 1 percentage point, from 5% to 6%. He would create a per-child tax credit of up to $100 for individuals earning less than $80,000 and joint filers earning less than $100,000.
The corporate tax rate would increase from the current 7% to a flat rate of 7.99%, matching the top personal rate.
August 21, 2020 at 06:40AM