Taxes in Chicago, Illinois
Complete tax guide for Chicago, IL. State income tax up to 4.95%, 2.1% property tax, 10.25% sales tax. Calculate your total tax burden.
State Income Tax
4.95%
Illinois
Property Tax
2.1%
Effective rate
Sales Tax
10.25%
Combined rate
Tax Burden
Very High
Chicago, IL Tax Overview
Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax
Population
2,746,388
Median Income
$65,781
Cost of Living
107.8 (100 = avg)
State Income Tax
4.95%
Median Home Price
$310,000
Chicago Tax Calculator
Pre-filled with Chicago median: $65,781
Total Tax Burden in Chicago
$14,374
Take-Home: $51,407 · Effective Rate: 21.85%
Federal Tax
$6,086
9.25% eff.
IL State
$3,256
4.95% eff.
FICA
$5,032
7.65% eff.
Take-Home
$51,407
78.15% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $65,781.00 | $5,481.75 |
| Federal Income Tax | -$6,085.82 | -$507.15 |
| Illinois State Tax | -$3,256.16 | -$271.35 |
| Social Security (6.2%) | -$4,078.42 | -$339.87 |
| Medicare (1.45%) | -$953.82 | -$79.49 |
| Take-Home Pay | $51,406.77 | $4,283.90 |
Property Tax in Chicago
Median Home
$310,000
Annual Tax
$6,510
Monthly Tax
$543
Effective Rate
2.1%
Sales Tax in Chicago
Combined Rate
10.25%
State Portion
~7.8%
Local Portion
~2.5%
The combined sales tax rate in Chicago is 10.25%, which is above the national average of 7.12%. On a $100 purchase, you would pay $10.25 in sales tax.
Tax Burden Comparison
| Tax Type | Chicago | Illinois Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.95% | 4.95% | 4.6% |
| Property Tax | 2.1% | ~2.1% | 1.1% |
| Sales Tax | 10.25% | ~10.25% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Chicago Residents
- Illinois's income tax rate of 4.95% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Property tax in Chicago (2.1%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- The combined sales tax rate of 10.25% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Illinois
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HighCalculate Your Full Illinois Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Chicago, IL?
Chicago, Illinois has a state income tax rate up to 4.95%. The property tax rate is 2.1% and the combined sales tax rate is 10.25%. Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax
How much is property tax in Chicago?
The effective property tax rate in Chicago is 2.1%. On the median home price of $310,000, this equals approximately $6,510 per year or $543 per month. This is above the national average of 1.1%.
What is the sales tax rate in Chicago?
The combined sales tax rate in Chicago is 10.25%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Chicago's tax burden compare to other cities?
Chicago has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 35.4%. The combination of 4.95% state income tax, 2.1% property tax, and 10.25% sales tax determines the total burden. Cost of living index is 107.8 (100 = national average).
Are there any local taxes in Chicago?
Chicago does not impose a separate local or city income tax. Residents pay the state income tax of 4.95%, federal income tax, and FICA (Social Security and Medicare). Very high combined sales tax (10.25%); high property taxes; flat 4.95% state income tax