Bill > HB2608

This bill amends the Illinois Income Tax Act to reduce income tax rates for individuals, trusts, estates, and corporations. Specifically, the bill reduces the individual income tax rate from 4.95% to 3.75%, which will be implemented in stages beginning January 1, 2026. Similarly, the corporate income tax rate will be reduced from 7% to 6%, also taking effect on January 1, 2026. For tax years beginning before 2026, there will be a gradual transition period where the tax rate will be calculated as a weighted average between the old and new rates depending on the portion of the tax year before and after the rate change. This tax reduction applies to all individuals, trusts, estates, and corporations subject to Illinois state income tax, potentially providing tax relief for both individual taxpayers and businesses operating in the state. The bill is effective immediately upon passage, with the actual rate reductions scheduled to phase in starting in 2026.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2608&GAID=18&DocTypeID=HB&SessionID=114&GA=104