Will Illinois taxes rise? It seems unlikely. However, the passage of a tax hike shows the importance of state tax law when comparing costs of living.
Illinois Tax Hike
Democrats voted 32-26 to pass the tax legislation which would bring in roughly $5.4 billion in new revenue. The personal income tax rate would increase from 3.75 percent to 4.95 percent. This is just below the 5 percent rate in place before Rauner took office.
The corporate income tax rate would be hiked from 5.25 percent to 7 percent. The higher rates would be retroactive to Jan. 1, meaning if they became law the effect on take-home pay would be far larger.
Before the Senate vote, Rauner fielded staff-screened questions on Facebook Live and said he won’t give up on his push to freeze property taxes. “We will always stand on the side of taxpayers and homeowners, and make sure we get an agreement that is fair to you,” Rauner said in a later statement from his office.
Find out how the mix of taxes in Illinois looks in actuality using your own unique spending habits as the basis — just download the City Vs City app to calculate now!
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