Taxes in Mount Prospect, Illinois
Complete tax guide for Mount Prospect, IL. State income tax up to 4.95%, 2.02% property tax, 7.54% sales tax. Calculate your total tax burden.
State Income Tax
4.95%
Illinois
Property Tax
2.02%
Effective rate
Sales Tax
7.54%
Combined rate
Tax Burden
Moderate
Mount Prospect, IL Tax Overview
Population
56,265
Median Income
$71,100
Cost of Living
98.2 (100 = avg)
State Income Tax
4.95%
Median Home Price
$256,000
Mount Prospect Tax Calculator
Pre-filled with Mount Prospect median: $71,100
Total Tax Burden in Mount Prospect
$16,215
Take-Home: $54,885 · Effective Rate: 22.81%
Federal Tax
$7,256
10.21% eff.
IL State
$3,519
4.95% eff.
FICA
$5,439
7.65% eff.
Take-Home
$54,885
77.19% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $71,100.00 | $5,925.00 |
| Federal Income Tax | -$7,256.00 | -$604.67 |
| Illinois State Tax | -$3,519.45 | -$293.29 |
| Social Security (6.2%) | -$4,408.20 | -$367.35 |
| Medicare (1.45%) | -$1,030.95 | -$85.91 |
| Take-Home Pay | $54,885.40 | $4,573.78 |
Property Tax in Mount Prospect
Median Home
$256,000
Annual Tax
$5,171
Monthly Tax
$431
Effective Rate
2.02%
Sales Tax in Mount Prospect
Combined Rate
7.54%
State Portion
~5.0%
Local Portion
~2.5%
The combined sales tax rate in Mount Prospect is 7.54%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.54 in sales tax.
Tax Burden Comparison
| Tax Type | Mount Prospect | Illinois Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.95% | 4.95% | 4.6% |
| Property Tax | 2.02% | ~2.02% | 1.1% |
| Sales Tax | 7.54% | ~7.54% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Mount Prospect 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 Mount Prospect (2.02%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- 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.
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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Mount Prospect, IL?
Mount Prospect, Illinois has a state income tax rate up to 4.95%. The property tax rate is 2.02% and the combined sales tax rate is 7.54%.
How much is property tax in Mount Prospect?
The effective property tax rate in Mount Prospect is 2.02%. On the median home price of $256,000, this equals approximately $5,171 per year or $431 per month. This is above the national average of 1.1%.
What is the sales tax rate in Mount Prospect?
The combined sales tax rate in Mount Prospect is 7.54%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Mount Prospect's tax burden compare to other cities?
Mount Prospect has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 29.7%. The combination of 4.95% state income tax, 2.02% property tax, and 7.54% sales tax determines the total burden. Cost of living index is 98.2 (100 = national average).
Are there any local taxes in Mount Prospect?
Mount Prospect 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).