Alerts





 
silky abstract background Illinois Tax Rate Change


by Christina Immelman and Richard Barjon

Due to a sunset provision in 2011 state tax law, the Illinois Income Tax rate for individuals, trust and estates has decreased from 5% to 3.75%effective January 1, 2015.  The new rate applies to Illinois taxable investment income, employee and unemployment compensation, gambling and lottery winnings.

For corporations (excluding S corporations), the Illinois Income Tax rate is decreasing from 7% to 5.25% effective January 1, 2015. Additionally, corporations may use their Illinois net loss deduction without limitation for tax years ending on or after December 31, 2014.  This net loss deduction was limited to $100,000 for tax years ending on or after December 31, 2012 and before December 31, 2014. Corporate fiscal year filers must use one of two methods outlined by the Illinois Department of Revenue to allocate their revenue between the two rates and periods that overlap January 1, 2014.

We aren’t back to the pre- 2011 income tax rates yet, but we are making progress.  The personal income tax rate is scheduled to be lowered to 3.25% in 2025 and the corporate rate is scheduled to fall to the pre-2011 rate of 4.8%. The replacement tax rates remain unchanged at 2.5% for corporations and 1.5% for trusts, S corporations and partnerships. Any not-for-profit entity with unrelated business income is subject to the new rates as of January 1, 2015.

 


Related Posts
Significant changes could occur to the federal tax law for individuals and businesses as a
This Tax Alert is the second in the Final Debt-Equity Regulations series regarding final Section
This Tax Alert is the first in our Final Debt-Equity Regulations series regarding final Section





Publications Industries Perspectives About Us Locations Contact Us



     
     
     
  PUBLICATIONS  
  Alerts  
  Surveys  
  White Papers  
  The Ledger  
     
  INDUSTRIES  
  Banking  
  Financial Services  
  Healthcare  
  Not for Profit  
  Real Estate  
     
  PERSPECTIVES  
  The Good Bank  
  Commitement Letter  
 
       Sign up to receive Mazars USA The Ledger

 
 


Mazars USA LLP is an independent member firm of Mazars Group.

Legal and privacy policy    Contact us    Terms and Conditions

 



     
     
     
  PUBLICATIONS  
  Alerts  
  Surveys  
  White Papers  
  The Ledger  
     
  INDUSTRIES  
  Banking  
  Financial Services  
  Healthcare  
  Not for Profit  
  Real Estate  
     
  PERSPECTIVES  
  The Good Bank  
  Commitement Letter  
 
       Sign up to receive Mazars USA The Ledger

 
 


Mazars USA LLP is an independent member firm of Mazars Group.

Legal and privacy policy    Contact us    Terms and Conditions