The state of Illinois has legislated higher tax rates on personal and corporate income, taking effect this year 2011 through 2025.
The personal tax rate in the Prairie State increases from 3% (in 2010) to 5%. The corporate tax rate increases from 7.3% to 9.5%. Illinois is one of seven states with a flat tax, so the 5% personal rate will apply to all Illinois residents and nonresidents with Illinois-source income.
The tax rate increase will gradually taper off. The personal tax rate is scheduled to decrease to 3.75% in 2015 and then decrease again to 3.5% in 2025. Similarly, the corporate rate will fall to 7.75% in 2015 and then reset to the original 7.3% rate in 2025.
The Illinois Department of Revenue has advised employers that the new 5% withholding rate on payroll and other income goes into effect immediately. The DOR has advised that employees may, at their sole discretion, request that employers withhold extra amounts to catch up for pay periods during which a lower rate of withholding was applied.
More about:
Yeah, sure, the Illinois income tax rate is going down, as now scheduled, in the distant future.
In the meantime, I’ve just received the last of three estimates from moving van companies, and my family will be gone by month’s end. Good bye, tax hell, hello tax and opportunity haven (Texas). We are voting we our feet.
We have an IDIOT for a Governor Go aheah Moron Give Sears another Tax Break…….YOU have DOOMED the State of Illinois and its residence with your Ignorance
I wonder how bad the ranking would be if the real IL corporate income tax rate of 9.5% were reported. (IL has a “hidden” tax on the same income….) Oh, wait, we cannot go much lower.
Hey, cheer up ppl. Compare to what Canadians pay you guys are paying peanuts.
The Governor is an idiot – Madigan is a tyrannical Socialist who can’t add and now wants State employees to pay for his stupidity and malefeasence. Both of these individuals signed off on the pension “holidays” that put Illinois in this position and should be fired for incompetence at minimum or jailed for deception – give them a little bubba luvin’