Illinois Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Illinois in 2026, with political context.
No
No Income Tax
4.95% (flat)
Income Tax Rate
#8
Tax Burden Rank (1=highest)
#47
Property Tax Rank (1=highest)
Tax Policy Overview
Illinois has high property taxes (2nd highest nationally) and a flat income tax despite a failed 2020 constitutional amendment to create a progressive tax. The combination of high property taxes, high sales taxes in Chicago, and significant corporate taxes creates a heavy overall burden.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 4.95% (flat) |
| No Income Tax | No |
| Sales Tax | 6.25% (+local up to 11%) |
| No Sales Tax | No |
| Corporate Tax | 9.5% |
| Property Tax Rank | #47 nationally (1=highest) |
| Overall Tax Burden Rank | #8 nationally (1=highest) |
Political Context
The 2020 Fair Tax amendment (progressive income tax) failed with 55% opposition, a major defeat for Governor Pritzker. Illinois fiscal crisis — massive pension obligations — drives tax policy. Republicans argue taxes drive residents and businesses to lower-tax states. Property tax reform is perennial.