Tax Facts:
-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:
Don’t keep yourself in the dark!
We know that the tax code is so overwhelming that people fall into a state of paralysis even before they even get started.
TaxedRight is here to help educate you and make you not afraid.
Sign up for my free newsletter with tips and tricks that help you keep up to date with what’s going on in tax and finance!
You may unsubscribe at any time.
I’ve been an IRS Revenue Agent and Tax Examiner in the Individual, Business, and Employment Tax Divisions. I know how to legally optimize not just how much money you get to keep, but your overall business and tax strategies and structurings.
Copyright © 2020 Taxed Right LLC. TaxedRight, TaxTicker, illustrations such as pigs and coins, are all trademarks of Taxed Right LLC. All rights reserved.