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Home Energy Tax Credit in Illinois 2026

Calculate your home energy tax credit tax savings in Illinois. With Illinois's 4.95% top state tax rate, your combined savings are higher.

Illinois Tax Overview

State Income Tax
4.95%
flat
Sales Tax
6.25%
avg combined: 8.82%
Property Tax Rate
2.07%
Median Income
$72,205

Flat 4.95% (constitutionally mandated). No standard deduction. Second-highest property taxes (2.07%). Most retirement income exempt.

Illinois Income Tax Brackets (Single)

4.95%
$0 +
Your bracket
$3,200
Est. Total Savings
$3,200
Max Deduction
Tax Credit
Deduction Type
26.9%
Combined Tax Rate

Home Energy Tax Credit Savings Calculator for Illinois

$
$

Federal Savings

$3,200

22% bracket

Illinois State

$0

4.95% rate

Total Savings

$3,200

26.9% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Illinois

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 4.95% Illinois state tax on top of federal savings.

Eligibility Requirements

Homeowners who install energy-efficient improvements

  • 1Must be primary residence
  • 2Qualifying improvements only
  • 3Keep receipts

Illinois residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 4.95%.

Common Mistakes to Avoid

  • !Claiming for rental properties
  • !Missing manufacturer certifications
  • !Forgetting to claim the deduction on your Illinois state return (missing up to 4.95% additional savings)

Illinois Filing Tips

With no standard deduction, maximize pre-tax retirement contributions. Property taxes can exceed $10,000 annually. Illinois exempts most retirement income. Focus on property tax reduction strategies.

Required Tax Forms

Form 5695

File these forms with your federal tax return to claim the home energy tax credit. Illinois may require additional state-specific forms.

Other Tax Deductions in Illinois

Mortgage Interest Deduction

Housing

~$4,287
est. savings

Property Tax Deduction

Housing

~$2,695
est. savings

Home Office Deduction

Housing

~$1,470
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$4,900
est. savings

PMI Premium Deduction

Housing

~$1,347
est. savings

Mortgage Points Deduction

Housing

~$2,450
est. savings

Casualty & Theft Loss Deduction

Housing

~$6,125
est. savings

Home Energy Tax Credit in Neighboring States

Wisconsin

7.65% top rate (progressive)

~$1,800
-1,400 vs Illinois

Iowa

3.8% top rate (flat)

~$1,800
-1,400 vs Illinois

Missouri

4.8% top rate (progressive)

~$1,800
-1,400 vs Illinois

Kentucky

4% top rate (flat)

~$1,800
-1,400 vs Illinois

Indiana

3.05% top rate (flat)

~$1,800
-1,400 vs Illinois

Tax Calculators for Illinois Cities

ChicagoAuroraJolietNapervilleRockfordElginSpringfieldPeoriaWaukeganChampaign

Calculate Your Full Tax Savings in Illinois

Use our free tax calculators to optimize your entire tax return for Illinois.

Income Tax CalculatorIllinois Income TaxFull Home Energy Tax Credit Guide

Frequently Asked Questions

How much can I save with the Home Energy Tax Credit in Illinois?

In Illinois, the home energy tax credit can save you an estimated $3,200 per year on a $5,000 deduction. This includes $3,200 in federal tax savings and $0 in Illinois state tax savings at the 4.95% marginal rate. The national average savings is $1,800/year.

What is the Illinois state income tax rate?

Illinois has a flat income tax system with a top rate of 4.95%. Flat 4.95% (constitutionally mandated). No standard deduction. Second-highest property taxes (2.07%). Most retirement income exempt.

Who qualifies for the Home Energy Tax Credit in Illinois?

Homeowners who install energy-efficient improvements. The eligibility requirements are the same whether you live in Illinois or another state, as this is a federal tax credit. However, your total savings will vary based on Illinois's 4.95% top state tax rate.

What tax forms do I need to claim the Home Energy Tax Credit in Illinois?

To claim the home energy tax credit, you need to file Form 5695 with your federal return. Illinois residents should also check if the state allows this deduction on their state return for additional savings of up to 4.95%. Filing status affects your deduction limits and tax bracket.

Is the Home Energy Tax Credit better in Illinois than in states without income tax?

Yes, Illinois residents benefit more because the state's 4.95% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 26.9% means more savings per dollar deducted.

What is the standard deduction in Illinois for 2026?

Illinois's standard deduction is $0 for single filers and $0 for married filing jointly. With no standard deduction, maximize pre-tax retirement contributions. Property taxes can exceed $10,000 annually. Illinois exempts most retirement income. Focus on property tax reduction strategies.

Related Calculators

Mortgage Interest Deduction in Illinois

Avg savings: $3,500/year

Property Tax Deduction in Illinois

Avg savings: $2,200/year

Home Office Deduction in Illinois

Avg savings: $1,200/year

Residential Solar Tax Credit in Illinois

Avg savings: $7,500/year

Military Moving Expenses in Illinois

Avg savings: $4,000/year

PMI Premium Deduction in Illinois

Avg savings: $1,100/year