Illinois
is a beautiful state to call home. Unfortunately, however, it is also a state
where taxes tend to be on the high side. There are, for example, higher taxes
on cigarettes and soda than you’ll find in other states. While there’s not much
you can do about these taxes, you can, at least, educate yourself on them so
that you won’t get taken by surprise.
Property
Taxes
Property
taxes exist in Illinois as they do in other states. One nice thing about property
taxes in Illinois, however, is that the money paid goes right back into local
municipalities, with a lot of money being used in school districts.
When
you pay property taxes, you pay a year after the property has been assessed.
Assessment occurs at 33.33% of the property’s market value. The only difference
is with farmland, which is assessed based on its potential to earn income.
You
should be aware, however, that there are many exemptions available that can
help you to save on property taxes, so it’s definitely smart to work with a tax
professional in an effort to save as much as you can.
Income
Tax
In
the state of Illinois, you’ll find that your income tax is not levied based on
income level. Instead, everyone is subjected to a 3% levy.
However,
you can enjoy a deduction of $2,000 for each exemption you claim, and you can
also get another exemption of $1,000 if you or your partner is at least 65
years old, is blind, or both.
Fuel
Tax
Gasoline
taxes also exist in Illinois. You can expect to pay 39 cents in tax for every
gallon of unleaded fuel you purchase. Diesel, on the other hand, has a tax rate
of 41.7 cents per gallon.
There
are some exceptions to these rules, though. For example, Chicago and all of
Cook County add an extra 5 to 6 cents in tax for fuel.
As you can see, there are a lot of taxes that exist in Illinois, but if you are prepared for them and have a good accountant to help
you catch a break where you can, they shouldn’t cause you too many problems.
