Taxes

Below is a listing of taxes at the State & County level. More information can be found by contacting the Illinois Department of Revenue and the Kankakee County Treasurer’s Office.

State Business Taxes

Corporate Income Tax: Corporations pay 7.3 % (4.8 % income tax and 2.5% replacement tax). The corporate income tax is calculated by multiplying net income by the flat rate.

Sales Tax: The State sales tax rate for general merchandise is 6.25% and any amounts added by local municipalities. Kankakee County does not add any additional sale tax rates beyond the State rate. Qualifying food, drugs and medical supplies are taxed at 1%.

Unemployment Tax: Illinois SUTA unemployment tax is calculated on the first $11,500 of wages for each employee (2007 cutoff). The tax rate starts at 3.9% for most new companies (4.8% for construction companies). After the first year, the rate varies between 1.0% and 8.2% depending on the company's payroll totals and UI claims.

County Business Taxes

Property Taxes: The property tax is the largest single tax in Illinois and is the major source of revenue for local government taxing districts (counties, townships, municipalities, school districts and special taxing districts). Property tax rates in Kankakee County vary by municipality.

State Personal Taxes

Individual Income Tax: Illinois’ personal income tax rate is calculated by multiplying net income by a flat rate, currently at 3%. Illinois maintains one of the lowest individual income tax rates in the nation.

County Personal Taxes

Residential Property Tax: The property tax is the largest single tax in Illinois and is the major source of revenue for local government taxing districts (counties, townships, municipalities, school districts and special taxing districts).