What is the current Individual Income tax rate?
| Tax Year Ending |
Rate |
| 1990 through 2008 |
3.00% |
| 1989 |
2.75% |
| 1985 through 1988 |
2.50% |
| 1984 |
2.75% |
| 1983 |
3.00% |
| 1969 through 1982 |
2.50% |
Will I owe penalties?
You will owe
- a late-filing penalty if you do not file a return that we can process by the extended due date.
- a late-payment penalty for tax not paid by the original due date of the return.
- a late-payment penalty for underpayment of estimated tax if you were required to make estimated tax
payments and failed to pay the required amount by the payment due dates.
- a bad check penalty if your remittance is not honored by your financial institution.
- a cost of collection fee if you do not pay the amount you owe within 30 days of the date printed on
any IDOR-2-BILL, Final Notice of Tax Due for Form IL-1040, Individual Income Tax Return, you receive.
- a frivolous return penalty if you fi le a return that does not contain information necessary to figure the
correct tax or shows a substantially incorrect tax, because you are taking a frivolous position or are trying
to delay or interfere with collection of the tax.
We will bill you for penalties. For more information about penalties, see Publication 103, Penalties and Interest for Illinois Taxes and Form IL-2210, Computation of Penalties for Individuals.
Will I owe interest?
You will owe interest on unpaid tax from the day after the original due date of your return through the date you pay the tax.
How do I calculate interest?
You will compute interest on tax from the
day after the original due date of your return through the
date you pay the tax and penalties. Interest is simple interest
figured using a daily rate. The rate is reviewed twice each
year - on January 1 and July 1 - and adjusted according to
the "underpayment rate" or the "short-term
federal rate" established under the Internal Revenue
Code (IRC), Section 6621.
For interest accruing on or after January 1, 2004,
the rate of interest payable on overpayments and underpayments
is the "short-term federal rate" for the first year
that the overpayment or underpayment accrues interest. This
rate is 3 percent less than the "underpayment rate."
After one year, interest will accrue on any remaining balance
at the "underpayment rate."
For interest accruing on or after January 1, 1994, and
before January 1, 2004, the rate is the "federal
underpayment rate."Click here to obtain the current interest rate.
