-The State of Illinois has both Corporate income tax and personal income tax rates with maximum rates of 4.95% and 7.00%, respectively. Businesses have additional taxes such PPTR and a Franchise Tax. Read more below.
The state of Illinois has two different types of Business taxes. A flat Corporate Income Tax and a Personal Property Replacement Tax (PPRT). The flat Corporate tax rate is 7.00% and is assessed only on C Corporations. The PPRT is assessed as follows:
In addition to the Corporate & PPTR tax, Illinois also has a franchise tax. The franchise tax is assessed on the capital assets of the business. The tax rates are 0.15% for the first year in business, and 0.10% for every additional year in business. There is a minimum tax of $25 per year. Currently there are plans to eliminate the franchise tax by 2024.
Like most states, Illinois has both a state and local sales tax. Its state sales tax is 6.25% and it’s local sales tax has an average rate of 2.83% (which puts the state average at 9.08%). Illinois has the 6th largest sales tax rate in the country.
The average property tax rate for residential property in the state of Illinois is 2.05%, which is well above the national average. In fact, Illinois is the 2nd most expensive state regarding property tax as a percentage of value in the country (behind New Jersey).
Unemployment taxes usually consist of three factors. They are: the wage base, the range of UI rates, number of schedules. Below is an outline of the three:
Illinois is one of the more expensive states in regards to opening an LLC. Here are some important facts: