Other forms of supplemental wages you can seek include bonuses, commission, stock options and prizes. Supplemental wages are taxed at the same rate as regular income in Illinois. If you have more than one job, you’ll need to split your allowances between your jobs. You can’t claim the same allowances with more than one employer in a single tax year. An alternative is to divide your allowances between the two jobs on the Form IL-W-4 you give to each employer, or you could claim all your allowances with one job and none with the other. If you double-claim allowances while holding more than one job, you’ll owe more money at tax time.

For comparison purposes, however, your Illinois tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. Illinois does not have tax brackets, so calculating your rate should be pretty simple. If you have a dollar or $1 billion that is subject to Illinois income tax, you owe 4.95% of that illinois income tax rate money to the state. [3] The sales taxes in Hawaii, New Mexico, and South Dakota have bases that include many business services and so are not strictly comparable to other sales taxes. As tax rates increase or products are banned from sale, consumers and producers search for ways around these penalties and restrictions.

State and Local Sales Tax Rates, Midyear 2019

If you have a lot of income that comes from non-work sources, like investments, the amount your employer withholds from your paychecks might not be enough to avoid ending up with a big tax bill. In this scenario, you may wish to fill out a new W-4 form and request that your employer withhold an additional amount from each of your paychecks. You can also pay estimated taxes every quarter to cover your bases with the IRS.

The state put the question of switching over to a progressive tax system to voters on the November 2020 ballot. The Illinois K-12 education expense credit can knock up to $750 off of your tax bill if you spent more than $250 on qualified education expenses. However, Illinois has a handful of tax-saving https://www.bookstime.com/ programs that may affect your final tax bill, and these can apply differently based on income or other life circumstances. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.

Welcome to the Illinois Department of Revenue

Cook, Kane and Warren counties are home to the state’s highest combined sales tax rates of 11.50%, 11% and 11%, respectively. For states with progressive tax systems, note that the dollar amounts in the income brackets apply to single filers; in many states, the income brackets double for joint returns. And, as is the case for federal returns, the amount you’ll pay to your state is also a function of your filing status, whether you have dependents, and whether you qualify for tax deductions and credits. For tax year 2023, estates worth less than $4 million are exempt.