Illinois taxes — property, income, sales, retirement

Home·Tax overview·Illinois

Property tax, income tax, sales tax, and retirement-income treatment in Illinois. Quick read for movers, retirees, and remote workers.

Among the highest effective property tax rates nationally. Flat 4.95% income tax. SS + retirement income largely untaxed.
Effective property tax
2.11%
of home value/yr
Income tax (top rate)
4.95%
Sales tax (state)
6.25%
local adds more
SS taxed by state?
No

Property tax

Illinois’s effective property tax rate is approximately 2.11% of assessed home value per year. On a $350,000 home that’s about $7,385/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 4.95%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.25%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Fully taxed at state income rate.

Top cities in Illinois

Chicago · pop 2,721,308 · momentum 63

Aurora · pop 180,710 · momentum 69

Naperville · pop 153,124 · momentum 73

Joliet · pop 151,837 · momentum 69

Rockford · pop 147,486 · momentum 81

Elgin · pop 114,701 · momentum 68

Compare to other states: All 50 state tax overviews · All Illinois cities · Best Illinois cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.