Please understand the following:
- The information we provide to you is based on assumptions and does not constitute a guarantee by the State of Illinois, Macoupin County, or the City of Staunton.
- The type of incentives and amount are determined on a project by project basis. Not all projects will qualify for certain incentives.
An explanation of the Illinois Tax System
Personal & Corporate Income Taxes
Income earned in Illinois or received by Illinois residents is taxed at 3%, the lowest in the Country.
Advantages: There are no local personal income taxes in Illinois.
Illinois does NOT tax
- Personal Property
- Retirement income
Corporate Income Taxes
Corporate income apportioned to Illinois is taxed at 7.3%, which includes:
4.8% state income tax and a 2.5 percent personal property replacement tax.
A unitary group of corporations files a combined return in Illinois.
The 2.5% replacement tax generates a credit equivalent to deducting the replacement tax before paying the regular corporate income tax
- Income apportionment is based solely on in-state sales.
- Corporations with more than 80% of their payroll and property outside the U.S. are not included in combined returns. Corporations with unique apportionment formulas are not included in combined returns.
- Credits include a 0.5 percent credit for investment in mining, manufacturing or retailing, plus an additional 0.5% if employment increases over 1%; a 1.6% training expense tax credit; a 6.5% Research and Development credit; and an additional 0.5% investment tax credit plus a $500 jobs tax credit in Illinois Enterprise Zones. The new Illinois EDGE program provides a credit equal to 3% of the wages of a new or expanding business' added employees.