Tax Comparisons | Tax Comparisons between Iowa and Illinois

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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; $2275 single, $4550 married & $2275/dependent. If 65 or older, add an additional $1000 to personal exemption.
  • 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 12/31/2019 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

2019 State Income Tax Factors

Income Tax Information Free Cost of Living Calculator

Starting Point for Computation of Tax (2019)

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, $70,000) 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 ($3,439 per beneficiary per donor for 2020 & $6,878 per beneficiary/married taxpayer donor for 2020) Contributions up to $10,000 per individual; up to $20,000 per married taxpayers per student for 2020
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 or Iowa Advisor 529 Plan Bright Start,College Illinois,Bright Directions
Itemized Deductions Allowed Yes - decoupled from Federal No
Property Tax Credit No Yes (for Illinois property)
Personal Income Tax Rates Ranges from .36% to 8.98% 4.95% for 2018
Link to State Department of Revenue Iowa Department of Revenue Illinois Department of Revenue

2020 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 2.00%
  • Colona
 N/A 2.00%
  • East Moline
    • Bend Business District
 N/A 1.50%
2.50%
  • Hampton
 N/A 1.50%
  • Galesburg
    • N. Seminary District
 N/A 2.50%
3.50%
  • Geneseo
 N/A 2.00%
  • Henry Co.
 N/A 1.50%
  • Kewanee
 N/A 2.00%
  • Mercer Co.
 N/A 1.00%
  • Milan
 N/A 1.50%
  • Moline
    • Ave. of the Cities District
 N/A 2.25%
3.25%
  • Monmonth
 N/A 3.00%
  • Morrison
 N/A 2.00%
  • Rock Island
 N/A 2.25%
  • Rock Island Co.
 N/A 1.00%
  • Rock Falls
 N/A 2.00%
  • Savanna
 N/A 0.25%
  • Silvis
 N/A 1.50%
  • 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

2019 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