Fiscal Year 2026 Estimate for Replacement Taxes

In accordance with Illinois statute (50 ILCS 420/4.1), the Illinois Department of Revenue is required to provide an estimated entitlement* of the amount of Personal Property Replacement Taxes ("PPRT")** for each fiscal year.

The Fiscal Year 2026 PPRT allocations are estimated at $2.025 billion. This is an increase of 2.1 percent, or $41.0 million, from Fiscal Year 2025 PPRT allocations that totaled $1.984 billion.

The following factors are affecting the FY 2026 estimate:

• Due to a review of past business tax payments, a larger share of tax payments made from pass-through entities will be diverted away from PPRT and towards corporate and individual income taxes. The purpose of this change is to minimize future diversions out of the PPRT Fund.
• The IDOR true-up of BIT payments that occurred in March of 2025 resulted in a decrease in the amount diverted out of the PPRT fund. This will lead to an increase in shared revenue payments of approximately $237.8 million in FY 2026 compared to FY 2025.
• In FY 2026, there will be an increase in the transfer from the refund fund to the PPRT fund of $88.4 million compared to FY 2025.
• It is expected that the delinquent tax payment incentive program established in Public Act 104-0006 will increase deposits into PPRT for FY 2026.
• Statutory changes to the Illinois Income Tax Act should have a positive impact on PPRT payments made by C corporations. However, potential revenue loss from tax changes made at the federal level could outweigh any gains generated by state-level tax changes.
• The domestic corporate profits outlook is putting downward pressure on the underlying forecast.

A detailed listing of the approximate 6,500 local taxing districts that are entitled to receive an allocation for Fiscal Year 2026 (July 1, 2025, through June 30, 2026) is available here. The list contains the following information:

District name

District number

FY 2026 estimated amount

FY 2025 actual disbursement amount

Vendor number

This information may be considered certified by the Director of the Illinois Department of Revenue solely for purposes of allowing local taxing districts to issue tax anticipation notes, in accordance with 50 ILCS 420/1 et seq., Tax Anticipation Note Act.

These numbers represent an ESTIMATE based on the best available economic data. The actual amount a local government will receive may vary. Please note that the Illinois Department of Revenue is not liable for error or miscalculation in certification of entitlements.

* "Entitlement" - the amount of the Replacement Tax paid or to be paid in any given full year to a unit of government.

** "Personal Property Replacement taxes" –  the tax or taxes, as by law now or hereafter enacted or amended, imposed by the General Assembly to replace revenue lost by units of government as a result of the abolition of ad valorem personal property taxes pursuant to Article IX, Section 5(c) of the Constitution of the State of Illinois.