Bill > HB2605

This bill amends the Illinois Income Tax Act by significantly increasing the standard exemption for individual taxpayers. Specifically, the bill changes the basic standard exemption amount for taxable years ending after December 31, 2025, from the current tiered structure (which was $2,050 plus a cost-of-living adjustment) to a fixed amount of $150,000. This represents a dramatic increase in the standard tax exemption for Illinois taxpayers. The bill maintains existing provisions related to additional exemptions for taxpayers and spouses who are 65 or older or blind, and continues to apply the existing rules about prorating the exemption based on income allocable to the state. The change is part of the Illinois Income Tax Act's ongoing modifications to standard tax exemptions, which have historically been adjusted periodically to account for inflation and economic conditions. The bill becomes effective immediately, meaning the new $150,000 standard exemption will apply to tax years starting after December 31, 2025.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2605&GAID=18&DocTypeID=HB&SessionID=114&GA=104