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Historic Rehabilitation Tax Credit in Chicago, IL 2026

Calculate your historic rehabilitation tax credit tax savings in Chicago, Illinois. With Illinois's 4.95% state tax rate, your combined savings are higher.

Illinois Tax Context

State Income Tax
4.95%
Local Income Tax
None
Property Tax Rate
2.1%
Tax Burden
Very High

Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax

$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
26.9%
Combined Tax Rate

Historic Rehabilitation Tax Credit Savings Calculator for Chicago

$
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Federal Savings

$5,000

22% bracket

Illinois State

$0

4.95% rate

Local Tax

$0

0% rate

Total Savings

$5,000

26.9% combined

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

Savings by Tax Bracket in Chicago

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

Owners of certified historic structures who undertake substantial rehabilitation

  • 120% credit for certified historic structures
  • 2Must be a substantial rehabilitation (exceed adjusted basis)
  • 3Must follow Secretary of Interior's Standards

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

  • !Not getting Part 1 certification before starting work
  • !Failing to meet the substantial rehabilitation test
  • !Not spreading credit over 5 years as required
  • !Forgetting to claim the deduction on your Illinois state return (missing 4.95% additional savings)

Required Tax Forms

Form 3468NPS Form 10-168

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

Other Tax Deductions in Chicago, IL

Mortgage Interest Deduction

Housing

~$4,287
est. savings

Property Tax Deduction

Housing

~$2,695
est. savings

Home Office Deduction

Housing

~$1,470
est. savings

Home Energy Tax Credit

Housing

~$1,800
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

Historic Rehabilitation Tax Credit in Other Illinois Cities

Aurora, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Joliet, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Naperville, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Rockford, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Elgin, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Springfield, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Peoria, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Waukegan, IL

4.95% state tax

~$15,000
+10,000 vs Chicago

Calculate Your Full Tax Savings in Chicago

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

Income Tax CalculatorTaxes in ChicagoFull Historic Rehabilitation Tax Credit Guide

Frequently Asked Questions

How much can I save with the Historic Rehabilitation Tax Credit in Chicago, IL?

In Chicago, Illinois, the historic rehabilitation tax credit can save you an estimated $5,000 per year. This includes $5,000 in federal tax savings and $0 in Illinois state tax savings. The national average savings is $15,000/year.

What is the Illinois state income tax rate for Chicago residents?

Illinois has a 4.95% state income tax rate. Chicago residents have no additional local income tax. Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax

Who qualifies for the Historic Rehabilitation Tax Credit in Chicago?

Owners of certified historic structures who undertake substantial rehabilitation. The eligibility requirements are the same whether you live in Chicago or elsewhere in the U.S., as this is a federal tax credit. However, your savings amount will vary based on Illinois's 4.95% state tax rate.

What tax forms do I need to claim the Historic Rehabilitation Tax Credit in Illinois?

To claim the historic rehabilitation tax credit, you need to file Form 3468 and NPS Form 10-168 with your federal return. Illinois residents should also check if the state allows this deduction on their state return, which could provide an additional 4.95% savings. Filing status affects your deduction limits and tax bracket.

Is the Historic Rehabilitation Tax Credit better in Chicago than in states without income tax?

Yes, Chicago residents benefit more because Illinois's 4.95% state income tax 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.

Related Calculators

Mortgage Interest Deduction in Chicago

Avg savings: $3,500/year

Property Tax Deduction in Chicago

Avg savings: $2,200/year

Home Office Deduction in Chicago

Avg savings: $1,200/year

Home Energy Tax Credit in Chicago

Avg savings: $1,800/year

Residential Solar Tax Credit in Chicago

Avg savings: $7,500/year

Military Moving Expenses in Chicago

Avg savings: $4,000/year