taxesUpdated 2026-04-01
Does Illinois Tax LLC Income at the State Level?
Yes. Illinois taxes pass-through LLC income at the owner level, and the current profile lists a headline rate of 4.95%.
What the Current State Tax Profile Shows
Illinois uses a flat individual income tax rate.
Why This Matters for LLC Owners
LLC owners often look only at federal pass-through treatment and miss the separate state layer. The checked-in tax profile for Illinois is meant to reduce that risk by keeping the rate, election, registration, and source-link details in structured JSON that can be refreshed later.