Illinois income tax-rate drops 25 percent - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Illinois income tax-rate drops 25 percent

SPRINGFIELD, IL (KFVS) - Illinois residents will see a 25 percent drop in their income tax rate in 2015.

The scheduled decrease is a part of a 2011 state income tax hike, when state legislators voted to raise Illinoisan's income tax from 3 percent to 5 percent.

The state income tax has rolled back from 5 percent to 3.75 percent beginning January 1, 2015. 

The Illinois Policy Institute reports that the average family in Illinois will take home an additional $1,075 a year as a result of the rollback.

The tax rate for corporations is also decreasing – from 7 percent to 5.25 percent.

Here is a look at what an Illinois resident making $50,000 per year will save with the January 1 income tax decrease.

An Illinois resident earning $50,000 a year will save $625 with the January 1 income tax decrease, or, instead of paying $2,500 on a 5 percent income tax in 2014, that person will now pay $1,875 on a 3.75 percent income tax in 2015.

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