Does Chicago have any tax advantages?

Illinois cities boast some of the highest sales taxes, including even the Chicago excise tax. Illinois also has the highest tax on cigarette sales in the country. However, cities and counties offer a long list of properties with property tax exemptions, as well as income tax, at a flat rate of 5%. Many people on the luminablog asking about the taxes in this area.

Illinois property tax

The state of Illinois does not replenish the budget with real estate taxes – all money is sent only to local governments. According to the Illinois Department of Revenue, approximately 62% of local property taxes are invested in schools for educational development.

According to finance companies in Chicago, property taxes are paid next year. Thus, the property tax assessed from January 1 will be paid next year (property taxes assessed in 2011 are payable in 2012).

Property tax exemptions

Illinois has some incentives that lower your property tax by lowering the appraised value of your home. The general household exemption can be claimed up to $ 5,000 for single-family homes that are the homeowner’s primary residence. A tenant who buys a home and agrees to pay property tax may also qualify for this benefit. Long-term occupancy exemption is available to Cook County residents for long-term residence in the same home that was the primary residence for 10 years or more (5 years if the home was purchased with government assistance or nonprofit programs and organizations ). To be eligible for this benefit, your income must be less than $ 100,000 per year. The maximum concession amount, in this case, is $ 10,000.

There are also benefits for retirees: a subsidized amount of $ 2,000 for people with disabilities, up to $ 70,000 for people with war disabilities, and a subsidized amount for home improvement after natural disasters and emergencies.

Illinois income tax

Illinois has a one-time income tax rate of 5%. It is one of seven states that have a fixed percentage, regardless of your income level.

Additional Illinois state taxes

Let’s see some additional taxes in this area:

  • Sales tax: The state sales tax is 9.5% and is the third-highest percentage in the entire US. Prescription and over-the-counter medicines, medicines and equipment, and certain foods are subject to a sales tax of only 1%.
  • Gasoline charge: $ 0.39 per gallon (3.78 L) of unleaded gasoline. Chicago and Cook County are allowed to increase taxes by 5 and 6 cents. Diesel is taxed at 41.7 cents per gallon.
  • Cigarette fee: 98 cents per pack of 20 Illinois cities and counties may charge additional fees of approximately $ 2.00. Chicago is the second-largest city in the country with $ 3.66 a pack of cigarettes

Chicago Soft Drinks Tax: Chicago retailers pay a 3% tax on non-alcoholic beverage revenue and often charge this percentage directly to a customer who buys a juice or other beverage with less than 50% juice (milk doesn’t matter). Wholesale companies that supply drinks for vending machines to foodservice points are required to pay an even higher tax – 9% of gross income from wholesale sales of beverages.