Complete Illinois retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #11 of 51.
1 bracket(s)
Treated as ordinary income
#2 (Very Low)
State 6.25% + local avg 8.9%
Illinois does not tax any retirement income including Social Security, pensions, and 401(k)/IRA distributions. The flat 4.95% tax on other income is moderate. High property taxes are the main drawback.
Not taxed
Not taxed
None
| Rate | From | To |
|---|---|---|
| 4.95% | $0 | No limit |
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