State of Illinois Capital Markets Presentation
16
Governor's Proposed Fair Income Tax Elements
Filers at or below $250,000 - 97% of
taxpayers will have lower tax bill
20% increase in current property tax
credit against state income taxes
ā Credit goes from 5% of property
taxes paid to 6% of property
taxes paid (estimated value $100
million)
$100 per child Child Tax Credit for:
Single filers under $80K (phase-
out starting @ $40K)
Joint filers under $100K (phase-
out starting @ $60K)
Top rate of 7.95% once income
exceeds $1.0 million.
ā Once income reaches $1.0
million, entire income is taxed at
7.95% rate
Corporate income tax rate to match
top individual income tax rate (7.95%)
Tax Rate
Rates
Marginal
Single & Joint Filers
% of IL
Net Income Level
Taxpayers
4.75%
$0 - $10,000
27.2%
4.90%
$10,001 - $100,000
58.9%
4.95%
$100,001 - $250,000
11.1%
7.75%
$250,001 - $500,000
1.9%
7.85%
$500,001 - $1,000,000
0.6%
7.95%
Over $1,000,000
0.3%
Fair Income Tax Proposal Rates (Without Credits)
8.50%
Households
8.00%
Seeing Tax
Relief
7.50%
7.95%
(97% of IL)
7.02%
6.92%
6.80%
7.00%
6.63%
6.50%
6.00%
5.50%
4.88%
4.75%
4.92%
5.54%
5.00%
6.40%
6.07%
4.50%
4.00%
5,000
85,000
165,000
245,000
325,000
405,000
485,000
805,000
885,000
965,000
1,045,000
1,125,000
1,205,000
565,000
645,000
725,000
-Effective Rate
Filer Net Income
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AUG. 26 1818View entire presentation