Business Climate

state of illinois income taxes
Corporate Income Tax Rate 9.5%
Corporate Income Tax Rate Structure (Flat or Top Progressive) Flat
Corporate Income Tax Rate Apportionment (Sales-Property-Payroll) 100-0-0
Personal Income Tax Rate 5%
Personal Income Tax Rate Structure Flat
Sales, Use, and Gross Receipts Taxes

Sales Tax Rate

General Sales Tax Rate (Statewide) 6.25%
Additional Local Sales Taxes Authorized Yes
Rate on Electricity 5%
Rate on Natural Gas 5%

Sales Tax Exemptions

% of Services Exempt 97%
Manufacturing Machinery Exempt
Custom Software Exempt
Property Taxes
Effective Tax Rate for Representative Urban Industrial Property 1.26%

Property Tax Exemptions

Personalty Exempt
Machinery Exempt
Inventory Exempt
Payroll Taxes

Unemployment Insurance

Taxable Base $12,740
New Employer UI Rate 3.40%
Minimum UI Rate 0.70%
Maximum UI Rate 8.40%
Estimated Average UI Costs (% total wages) 0.96%
Workers’ Compensation Average Rate 3.05%
Motor Fuels Taxes
Gasoline (cents/gallon) 19
Diesel (cents/gallon) 21.5

source: State of Illinois 2012