The Illinois Department of Revenue has issued the new income rates for individuals and businesses effective for income received on or after January 1, 2015.
The following is a summary of the rates:
- For individuals, trusts and estates – new rate is 3.75% (decrease from 5% rate).
- For Corporations (excluding S-Corporations) – new rate is 5.25% (decrease from 7% rate).
- Fiscal year end filers – must divide total net income between the periods subject to the different rates. Amounts earned prior to January 1, 2015 are taxed at 5% (individuals, trusts and estates) and 7% (corporations). The amounts earned on or after January 1, 2015 are taxed at 3.75% (individuals, trusts and estates) and 5.25% (corporations).
There is no change to the Illinois Replacement Tax rates. The rates remain the same; 2.5% for corporations and 1.5% for S-corporations, trusts and partnerships.
Since exempt organizations are classified as either trusts or corporations, the new income tax rates apply to these organizations with unrelated business income in Illinois.
For additional information: visit tax.illinois.gov and Bulletin #FY2015-9.
Legacy News Flash 15-1