Illinois state income tax
Varies
Can You Write Off Illinois state income tax?
Short answer: Illinois has a flat 4.95% tax, doesn't tax most retirement income, and gives a property tax credit of 5% of property taxes paid.
State and local income, sales, and property taxes share one SALT cap ($40,400 for 2026, reduced above about $505,000 of income) and only help if you itemize.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
Illinois state income tax
Varies
Individuals / Personal Taxes
Illinois has a flat 4.95% tax, doesn't tax most retirement income, and gives a property tax credit of 5% of property taxes paid.
Business justification
Illinois has a flat 4.95% tax, doesn't tax most retirement income, and gives a property tax credit of 5% of property taxes paid. State and local income, sales, and property taxes share one SALT cap ($40,400 for 2026, reduced above about $505,000 of income) and only help if you itemize.
Category
- Personal Tax Deductions