The Illinois Income Tax rate for individuals has decreased from 5% to 3.75%, effective January 1, 2015.
The new rate of withholding applies to
- Employee compnesation (i.e., wages and salaries0 paid in Illinois
- Unemployment paid to an Illinois rsident who has asked to have Illinois taxes withheld
- Gambling or lottery winnings in Illinois, and
- Purchases of rights to Illinois Lottery winnings.
*Illinois Department of Revenue Informational Bulletin January 2015