Illinois tax guide: sales, income and property tax
Three taxes decide most everyday money calculations in Illinois: what you pay at the register, what leaves your paycheck, and what your home costs each year. This guide sets out each one with the current figures, then links to the calculators that apply them. Rates are reviewed against state sources; confirm a specific transaction with the Illinois Department of Revenue.
The short answer
Illinois: 6.25% state sales tax, about 8.83% average combined (rank 9 of 51 — 2.22 points above the 6.61% all-state average), a flat income tax, and an average effective property tax of 2.27% (rank 2 of 51). On a $100 purchase at the average combined rate, the tax is $9.
Sales tax in Illinois
The statewide base rate is 6.25%. Counties, cities and special districts add their own layers, bringing the average combined rate to about 8.83% — and the rate at a specific address can sit well above or below that average. On a $100 purchase, the tax is $6 at the base rate and roughly $9 at the average combined rate. The difference is local tax, which is why two towns in the same state can charge noticeably different totals on the same item.
Groceries were long taxed at a reduced 1% state rate; Illinois repealed that state grocery tax effective 2026, though some municipalities re-adopted a local one — check locally.
Worked examples at the average combined rate
What the 8.83% average combined rate adds to purchases of different sizes:
| Purchase | Tax | Total |
|---|---|---|
| $25 | $2 | $27 |
| $100 | $9 | $109 |
| $500 | $44 | $544 |
| $1,000 | $88 | $1,088 |
| $10,000 | $883 | $10,883 |
If you sell into Illinois from another state, economic nexus rules can oblige you to collect its tax once your sales pass the state's threshold — the exact threshold and what counts toward it are in the Illinois sales tax calculator and rate page, and the data hub for the state is the Illinois locations page.
Income tax in Illinois
Illinois taxes income at a single flat rate. Flat 4.95% income tax. A flat structure makes take-home pay easy to estimate: state tax is close to a fixed share of taxable income, after the state's own deductions and exemptions.
Federal tax applies the same everywhere; the state layer is what changes a paycheck between two states. Run the same salary through the paycheck calculator and the take-home pay calculator with and without a state rate to see the size of the difference before negotiating a move or a remote-work arrangement.
Property tax in Illinois
The average effective property tax rate in Illinois is about 2.27% of a home's value per year. On a $400,000 home that is roughly $9,080 a year, or $757 a month — a real line in the housing budget, collected through escrow in most mortgages. Averages hide wide local variation: the county and school district set most of the rate, and homestead exemptions can cut the taxable value for owner-occupiers.
How Illinois compares
The states closest to Illinois on average combined sales tax, with the national extremes for scale. The all-state averages across the 51 entries are 6.61% for combined sales tax and 1.04% for property tax.
| State | Combined sales tax | Property tax |
|---|---|---|
| Illinois (this guide) | 8.83% | 2.27% |
| Kansas | 9.04% | 1.41% |
| Oklahoma | 8.98% | 0.9% |
| California | 8.85% | 0.75% |
| New York | 8.53% | 1.73% |
| Louisiana — highest combined | 9.56% | 0.55% |
| Oregon — lowest combined | 0% | 0.82% |
What this means for your money
Property tax is the heavy line in Illinois. At an average effective rate of 2.27% — rank 2 of 51, against an all-state average of 1.04% — a $400,000 home carries about $9,080 a year, roughly $756.67 a month. Because lenders collect property tax through escrow, it raises the monthly mortgage payment directly; affordability calculations that use only principal and interest understate the cost of owning here.
Read together: Illinois combines an average combined sales tax of 8.83% (rank 9 of 51), an average effective property tax of 2.27% (rank 2 of 51) and a flat state income tax. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Key figures
| Figure | Illinois |
|---|---|
| State sales tax (base) | 6.25% |
| Average combined sales tax | 8.83% |
| Groceries | Reduced rate |
| Income tax structure | Flat rate |
| Average effective property tax | 2.27% |
| Capital | Springfield |
| Largest city | Chicago |
City guides in Illinois
Combined rates inside the largest cities, and how each is built:
- Chicago sales tax guide — 10.25% combined
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Illinois tax FAQs
What is the sales tax rate in Illinois?
The statewide base rate in Illinois is 6.25%. With local taxes added, the average combined rate is about 8.83%, and the exact rate depends on where the sale takes place.
Does Illinois have a state income tax?
Yes. Flat 4.95% income tax.
Are groceries taxed in Illinois?
Groceries were long taxed at a reduced 1% state rate; Illinois repealed that state grocery tax effective 2026, though some municipalities re-adopted a local one — check locally.
How does Illinois rank for sales tax nationally?
Illinois's average combined rate of 8.83% ranks 9 of 51 states and DC (1 = highest) — 2.22 points above the all-state average of 6.61%. The highest average combined rate is Louisiana at 9.56%; the lowest is Oregon at 0%.
How much property tax do you pay in Illinois?
The average effective property tax rate in Illinois is about 2.27% of a home's value per year — rank 2 of 51, against an all-state average of 1.04%. On a $400,000 home that is roughly $9,080 a year. County assessors set actual bills, and exemptions can reduce them.
Where can I verify Illinois tax rates?
The rates in this guide are reviewed averages for planning. For a filing or a specific address, confirm the current rate with the Illinois Department of Revenue (sales and income tax) or the county assessor (property tax).
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Illinois Department of Revenue.