This means that these brackets applied to all income earned in 2021, and the tax return that uses these tax rates was due in April 2022. Arizona’s 2022 tax changes are among the nation’s most complex, as they involve—among other things—the unwinding of a prior ballot measure. Proposition 208 (2020) had created a 3.5 percent high earners tax atop the state’s existing 4.5 percent top marginal income tax rate, functionally yielding a new top rate of 8 percent. Lawmakers effectively undid the ratification through legislation, lowering the base rates to ensure that the combined top rate never exceeded 4.5 percent. They simultaneously adopted revenue triggers that could create a lower, single-rate tax.

• (nn) In lieu of the suspended personal exemption, New Mexico offers a deduction of $4,000 for all but one of a taxpayer’s dependents.
• If you gather your basic financial documents like paystubs or W-2s and 1099s, you can use the Turbotax Tax Calculator to get a personalized refund estimate.
• Because it is still available, these state-defined personal exemptions remain available in some states but are set to $0 in other states.
• Therefore, this compensation may impact what products appear and how, where, and in what order they appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products.
• The OBBBA made the underlying expanded CTC from the TCJA permanent, increased the maximum CTC up from $2,000, and introduced the inflation adjustment.
• Illinois’ uncompetitive and burdensome tax environment makes it difficult for the NFL team to operate.

State & Local Sales Tax Rates as of July 1, 2025

• Because the dollar value of property tax bills often fluctuates with housing prices, it can be difficult to use this measure to make comparisons between states.
• Illinois has no state tax on inheritance, but you are required to file on all estates of $4 million or more.
• In Illinois, these brackets categorize taxpayers according to their income levels, which ultimately determines the percentage of tax owed to the state.
• Because tax rates may change every year, remember that the pay date determines tax liability.
• If it’s time to pay your employees, you’re in the right place!
• Understanding local minimum wage requirements when hiring can help businesses stay compliant.

Because property taxes are almost invariably levied locally, and millages (rates) are not directly comparable with each other across states, providing a useful state-level comparison can be difficult. In an effort to present a multifaceted view, we feature two maps focused on the property tax. The first looks at median property tax bills and effective property tax rates in each county in the United States, and the second compares effective tax rates across states. However, it’s also possible to calculate your Retained Earnings on Balance Sheet effective tax rate using just your income and the tax rates noted in the tables above.

Supplemental tax rates by state

All taxable income is taxed at the same rate, with no marginal brackets. To understand net sales how flat tax tables differ from progressive systems, see our Tax Tables guide. These reduce a taxpayer’s total tax bill by some amount, which is in contrast to tax deductions, which only reduce a taxpayer’s taxable income.

• Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
• They are assessed a tax of $19,560 plus 9.25 percent of the excess over $250,000.
• (hh) Ohio’s personal and dependent exemptions are $2,400 for an AGI of $40,000 or less, $2,150 if AGI is more than $40,000 but less than or equal to $80,000, and $1,900 if AGI is greater than $80,000.
• Illinois has $10,575 in state and local debt per capita and a 52 percent funded ratio of public pension plans.
• Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
• However, extensions can be requested, allowing for additional time to file.

Does Illinois tax Social Security benefits?

Illinois’ income tax rates were last changed one year prior to 2022 for tax year 2021, and the tax brackets have not been changed since at least 2001. As of January 1, 2022, Washington, D.C.’s individual income tax changed considerably. Enacted via the Fiscal Year 2022 Budget Support Act of 2021, the District increased the number of tax brackets from six to seven and altered many of the thresholds.9 Changes begin for individuals with a D.C. They are assessed a tax of $19,560 plus 9.25 percent of the excess over $250,000. Those with taxable income over $500,000 but not over $1 million will pay $42,775 plus 9.75 percent of the excess over $500,000.

How to calculate your marginal tax rate

Instead, states without supplemental income tax rates continue using their standard income tax methods on supplemental pay. You may need to use a supplemental flat tax rate for federal and state income taxes. So, take a look at the supplemental tax rates by state to see if your state does. Notably, effective January 1, 2026, Illinois eliminated its one percent sales tax on food items; however, many local jurisdictions chose to impose their own local taxes on food. Property taxes are the single largest source of state and local illinois income tax rate revenue in the U.S. and help fund schools, roads, police, and other services. The revenue from this tax is shared between the levying county and its municipalities.