Illinois Tax Deductions 2025
Standard Deduction
For tax year 2025, Illinois provides a standard deduction of $2,425 per exemption. This amount is adjusted periodically for inflation.
Who Can Claim Standard Deduction:
- Illinois residents
- Part-year residents (prorated)
- Nonresidents with Illinois income
Common Tax Credits
Property Tax Credit
5% of Illinois property tax paid on your primary residence
Education Expense Credit
Up to $750 for qualified K-12 education expenses
Earned Income Credit
18% of federal earned income credit
Itemized Deductions
Illinois does not allow itemized deductions on the state return. However, certain subtractions from income are available:
- Contributions to qualified college savings plans
- Military pay for Illinois residents
- Retirement and Social Security income
- Certain federal bond interest
Business Deductions
Business owners may be eligible for various deductions, including:
- Research and development credits
- Investment credits
- Job creation credits
- Training expense credits