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TAX COMPARISONS


Many homebuyers are curious about the tax differences between Iowa and Illinois. Consult a tax professional for a more detailed comparison for your situation.

Illinois advantages

  • Deduction for personal exemptions; $2000 single, $4000 married & $2000/dependent
  • 5% credit for real estate taxes paid
  • Higher earners, including retirees, still pay a flat state income tax

Iowa advantages

  • Tax deductions for property taxes, mortgage interest and federal taxes paid
  • Some income tax breaks for joint filers
  • Lower sales tax than Illinois

These links are provided for the convenience of the user. The specific information provided within this document is as of 12/31/2016 and not to be used as tax advice. Each individual's income tax situation is different. We recommend that you consult with your income tax advisor to address your personal tax issues before making any decisions.

Tax Comparisons - Iowa and Illinois

State Website Links

Iowa

Illinois

General Website Link - State Individual Tax

General Iowa Website Link

General Illinois Website Link

State Individual Tax Form

Iowa State Individual Tax Form

Illinois State Individual Tax Form

State Instructions

Iowa State Instructions

Illinois State Instructions

2016 State Income Tax Factors

Income Tax Information Free Cost of Living Calculator

Starting Point for Computation of Tax (2016)

Common Adjustments to Federal Adjusted Gross Income (AGI)

Iowa AGI

Illinois AGI

Potential Additions for State Purposes:    
  • Interest from state & municipal securities
Yes Yes
  • Differences in Federal and State depreciation allowed
Yes (No bonus, Sec. 179 same as Federal) Yes (No bonus, 179 same as Federal)
Potential Subtractions for State Purposes:    
  • Interest from Federal securities
Yes Yes
  • Pension/Retirement Income Exclusion
Yes - Partial exclusion for Retirement Income Yes - Partial exclusion for Retirement Income
  • 100% of health and dental insurance premiums if not paid with "pre-tax" dollars
Yes Yes
  • CapitalLoss Deduction
Yes (if qualifies) No
  • Education Savings Contributions
College Savings Iowa or Iowa Advisor 529 Plan contributions ($3,188 per beneficiary per donor for 2016 & $6,376per beneficiary/married taxpayer donor for 2016) Contributions up to $14,000 per individual; up to $28,000 per married taxpayers per student for 2016
Treatment of Federal Taxes in calculating State AGI:    
  • Federal tax refunds taxable (if payments previously deducted
Yes N/A
  • Federal self-employment tax paid is added back
Yes N/A
  • Federal tax withheld and federal tax payments made are subtracted
Yes N/A
Educational Savings Plans Available: College Savings Iowa orIowa Advisor 529 Plan Bright Start,College Illinois,Bright Directions
Itemized Deductions Allowed Yes - similar to Federal No
Property Tax Credit No Yes (for Illinois property)
Personal Income Tax Rates Ranges from .36% to 8.98% 3.75% for 2015
Link to State Department of Revenue Iowa Department of Revenue Illinois Department of Revenue

2016 Sales Tax Information

Sales Tax

Iowa

Illinois

State General Tax Rate 6.00% 6.25%
Local General Tax Rates - Following IA Cities    
  • Bettendorf
1.00% N/A
  • Blue Grass
1.00% N/A
  • Clinton
1.00% N/A
  • Davenport
1.00% N/A
  • Eldridge
1.00% N/A
  • Le Claire
1.00% N/A
Local General Tax Rates - Following IL Cities    
  • Carbon Cliff
N/A 0.75%
  • Colona
N/A 0.50%
  • East Moline
N/A 0.50%
  • Hampton
N/A 0.50%
  • Galesburg
N/A 2.50%
  • Geneseo
N/A 1.50%
  • Henry Co.
N/A 1.00%
  • Kewanee
N/A 1.50%
  • Mercer Co.
N/A 1.00%
  • Milan
N/A N/A
  • Moline
N/A 1.25%
  • Monmonth
N/A 1.00%
  • Morrison
N/A 2.00%
  • Rock Island
N/A 1.25%
  • Rock Falls
N/A 2.00%
  • Savanna
N/A 0.25%
  • Silvis
N/A 0.50%
  • Sterling
N/A 2.00%
Sales Tax Links Iowa Department of Revenue Illinois Department of Revenue
Sales Tax Look Up Iowa Sales Tax Look Up Illinois Tax Rate Finder

2016 Property Tax Information

Property Tax

Website Link

Month Payments Due

Iowa http://www.iowa.gov/tax/locgov/iowa-pr
operty-tax.html
 
Scott County including the following cities: Bettendorf, Blue Grass, Davenport Eldridge, Le Claire
http://www.scottcountyiowa.com/assessor/ March & September
Clinton County including the following city: Clinton
http://www.clintoncounty-ia.gov/Page/Property_Tax.aspx?nt=495%20 March & September
Illinois    
Rock Island County including the following cities: East Moline, Milan, Moline, Rock Island, Silvis
http://www.co.rock-island.il.us/PTaxSearch/PropertySearch
Forms.asp?id=582%20
June, August, September, November
Knox County including the following city: Galesburg
http://www.knoxtreasurer.org/ June & September
Henry County including the following cities: Kewanee, Geneseo
http://www.henrycty.com/Departments/Treasurer-Property-Taxes/Property-Tax-Search June & September
Whiteside County including the following cities: Rock Falls, Sterling
http://www.whiteside.org/taxes/%20 June & September