Illinois Business Tax Calculator
Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Illinois.
Why calculating business in Illinois is different
Illinois has a flat income tax and high local property taxes.
State Income Tax
4.95%
Base Sales Tax
6.25%
State Min Wage
$14.00 / hr
Abbreviation
IL
Illinois Business Interactive Tool
This calculator uses the latest 2026 data for Illinois, including the minimum wage of $14.00 and the specific state income tax rates (4.95%).
Frequently Asked Questions about Illinois Business
What is the corporate tax rate in Illinois?
Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Illinois must also consider unemployment insurance taxes, sales tax collection (6.25%), and local business licenses.
Do LLCs pay tax in Illinois?
LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 4.95% rate. However, Illinois may also impose an annual LLC franchise fee.