• Illinois has a number of state taxes.tax time image by Gale Distler from Fotolia.com
  
  In the United States, citizens are subject to federal taxes, as well as state and local taxes. Some states have their own individual income taxes, while others do not. This can be quite confusing if a person moves from one state to another. Cases where an individual works primarily in one state and lives in another can become even more complex. Illinois has its own set of tax rules for residents and allows cities to make even more.
  
  

Personal Income Tax

• Illinois is a state which requires that all residents file an individual income tax form each year. Illinois has a flat personal income tax, which means that all residents pay the same rate, regardless of salary. The rate applies to your federal adjusted gross income. The personal income tax began in 1969 at 2.5 percent, and has risen slowly. In 2009, the flat tax rate was at 3 percent. Exemptions for single people was $2,000. A married couple can claim $4,000, and $2,000 more for each dependent. Like federal taxes, Illinois personal income taxes must be filed by April 15 of each year. Residents who don't file on time are subject to late penalties.
  
  

Sales and Use Taxes

• Illinois has a number of sales and use taxes which apply to people who do business and shop in Illinois. Distributors of motor fuel must pay a "pre-paid sales tax" if they resell to a business which is not a diesel fuel distributor or a state-licensed motor fuel distributor. Out-of-state sellers in Illinois must collect Illinois sales tax from residents or else pay the tax themselves directly to the state. Sales tax rates depend on the goods being sold. The rate for medical appliances, drugs and food is 1 percent, while the rate for most other kinds of merchandise is 6.25 percent. However, cities are allowed to add their own local taxes to the sales tax. In 2009, the city of Jerseyville had a sales tax of 7.25 percent, as did Waterloo. Greenville had a sales tax of 6.75 percent and Belleville charged 8.6 percent.
  
  

Property Tax

• Property taxes in Illinois are assessed by the cities and not by the state. In general, homes and property are assessed at one-third of the market value, 33.33 percent. Farmland is usually taxed by its ability to produce income from crops or livestock. If you live in Cook County, however, a different set of rules are used. There, single-family homes and residences are assessed at 16 percent. The state does offer seven homestead exemptions to the property tax, including ones for senior citizens, property improvements, the disabled and owner-occupied residential property.