Illinois Capital Gains Tax Calculator
Illinois taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Illinois income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Illinois state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Illinois Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Illinois state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Illinois Department of Revenue so you can confirm any special rule that applies to you.
Illinois taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $990.00 in Illinois state tax, an effective rate on the gain of 4.95%.
How Illinois taxes capital gains
Illinois taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Illinois bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Illinois capital gains tax: frequently asked questions
How are capital gains taxed in Illinois?
Illinois taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Illinois income tax brackets published by the Illinois Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Illinois Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Illinois?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $990.00 of Illinois state income tax for a single filer, an effective rate on the gain of 4.95%. Your figure depends on your total income and filing status; enter them above.
Does Illinois have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Illinois Department of Revenue; this calculator uses the ordinary income method and links the source.
What is Illinois's income tax rate for 2025?
Illinois taxes all net income at a flat 4.95% rate for individuals, regardless of income level or filing status. This rate has been in effect since July 1, 2017. Source: Illinois Department of Revenue.
Does Illinois have a standard deduction?
No. Illinois does not have a standard deduction. Instead, Illinois allows a personal exemption allowance of $2,850 per taxpayer for tax year 2025 (so $5,700 for a married couple filing jointly). An additional $2,850 allowance is available for each qualifying dependent claimed on Schedule IL-E/EIC. The allowance is eliminated entirely if your federal AGI exceeds $250,000 (single) or $500,000 (married filing jointly). Source: Illinois Department of Revenue, 2025 IL-1040 Instructions.
Does Illinois have a graduated income tax?
No. Illinois has a flat income tax rate set by the Illinois Constitution. A 2020 ballot measure to switch to a graduated rate structure was rejected by voters. The current flat rate is 4.95% for all taxpayers. Source: Illinois Department of Revenue.
What is the Illinois personal exemption allowance for 2025?
For tax year 2025, Illinois allows a personal exemption allowance of $2,850 per taxpayer. A married couple filing jointly claims $5,700 (two taxpayers at $2,850 each). Each qualifying dependent adds another $2,850 via Schedule IL-E/EIC. The allowance is fully phased out if federal AGI exceeds $250,000 for single filers or $500,000 for married filing jointly. Source: 2025 IL-1040 Instructions and Schedule IL-E/EIC, Illinois Department of Revenue.
Official sources
- Illinois income tax rates applied to capital gains (tax year 2025): Illinois Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Illinois Department of Revenue.