When it comes to taxes, Illinois has a complex system that can be confusing for taxpayers. Whether you're a lifelong resident or a recent transplant, it's important to understand the state's tax laws to avoid costly mistakes and make informed financial decisions. In this comprehensive guide to Illinois tax law, we'll explore the key concepts and regulations that every citizen should know, including income tax, sales tax, property tax, and estate tax. Income Tax Illinois has a flat income tax rate of 4.95%. This means that everyone who earns income in the state pays the same rate, regardless of how much they earn. However, there are some exemptions and deductions that can reduce your taxable income and lower your overall tax bill. For example, Illinois allows taxpayers to deduct a certain amount of income from retirement plans, such as IRAs and 401(k)s. The amount you can deduct depends on your age and the type of retirement plan you have. Illinois also offers a variety ...
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