More Taxation news More news in Illinois Find Taxation lawyers in Illinois
On June 1, 2026, Illinois lawmakers unveiled a comprehensive tax reform package aimed at modernizing the state's tax system and promoting economic growth. The proposed legislation includes a mix of tax cuts, credits, and reforms designed to provide relief to taxpayers while also generating much-needed revenue for the state.One of the key components of the tax reform package is a proposal to lower the state income tax rate for middle-class families. Under the plan, individuals earning between $50,000 and $100,000 per year would see a reduction in their tax rate from 4.95% to 4.75%, providing much-needed relief to working families in Illinois.In addition to income tax cuts, the tax reform package also includes measures to expand tax credits for low-income families and small businesses. The plan calls for an increase in the Earned Income Tax Credit (EITC) for low-income workers, as well as a new tax credit for small businesses that create jobs in economically distressed areas of the state.Furthermore, the proposed legislation aims to address the issue of property taxes in Illinois, which are among the highest in the nation. The tax reform package includes a provision to cap property tax increases for homeowners, providing much-needed relief to residents struggling to afford their tax bills.In order to generate additional revenue for the state, the tax reform package also includes measures to close corporate tax loopholes and implement a tax on luxury goods and services. These measures are intended to ensure that all taxpayers, including corporations and high-income individuals, pay their fair share to support vital public services and infrastructure projects.Overall, Illinois lawmakers hope that the proposed tax reform package will create a more fair and equitable tax system while also stimulating economic growth and job creation in the state. The legislation is expected to undergo further debate and revisions before being voted on by the full legislature in the coming weeks.