State Tax Rate Going Down

The Illinois income tax rate is going down on January 1.

Right now, the State takes 5% of your paycheck but that's dropping to 3-3/4%. That means a minimum wage worker will save just over $200/year in state taxes.

The State will lose billions of dollars in revenues when the rate drops, which could mean major cuts to some social service programs. That's talk that Governor-elect Bruce Rauner will make a deal with lawmakers and raise the rate back up once he takes office.