How taxes work in Illinois
Sales tax. Illinois charges a 6.25% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 8.83% is the number that matters at the till. Groceries were long taxed at a reduced 1% state rate; Illinois repealed that state grocery tax effective 2026, though some municipalities re-adopted a local one — check locally.
Property tax. At an average effective rate of about 2.27%, a $350,000 home in Illinois carries roughly $7,945 a year in property tax before exemptions. Illinois is a high-property-tax state — factor the tax bill into affordability, not just the mortgage payment. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. Flat 4.95% income tax. If you are self-employed in Illinois, you still owe federal self-employment tax plus quarterly state estimates where applicable.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Illinois compares with similar states
The states closest to Illinois on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| Illinois (this page) | 8.83% | 2.27% | Flat |
| Kansas | 9.04% | 1.41% | Progressive |
| Oklahoma | 8.98% | 0.9% | Progressive |
| California | 8.85% | 0.75% | Progressive |
| New York | 8.53% | 1.73% | Progressive |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in Illinois
Property tax is the heavy line in Illinois. At an average effective rate of 2.27% — rank 2 of 51, against an all-state average of 1.04% — a $400,000 home carries about $9,080 a year, roughly $756.67 a month. Because lenders collect property tax through escrow, it raises the monthly mortgage payment directly; affordability calculations that use only principal and interest understate the cost of owning here.
Read together: Illinois combines an average combined sales tax of 8.83% (rank 9 of 51), an average effective property tax of 2.27% (rank 2 of 51) and a flat state income tax. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in Illinois
Chicago, Aurora, Naperville, Joliet, Rockford. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The Illinois sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for Illinois residents
- Illinois Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact Illinois local rate.
- Mortgage Calculator — include Illinois property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for Illinois freelancers.