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To help our members make the most well-informed decision possible, Illinois REALTORS® is providing several background resources and further explaining the proposed graduated income tax plan for Illinois. On Nov. 3, voters will have the option to adopt or deny the graduated income tax.
If the graduated income tax is passed, Illinois would have a bracketed tax rate system like the federal income tax. In other words, each tier of a taxpayer’s net income would be taxed at the level prescribed. The six brackets adopted by Senate Bill 687 are as follows:
- $0 to $10,000 would be taxed at 4.75 percent.
- $10,001 to $100,000 would be taxed at 4.90 percent.
- $100,001 to $250,000 would be taxed at the current 4.95 percent.
- $250,001-$350,000 would be taxed at 7.75 percent.
- $350,001-$750,000 would be taxed at 7.85 percent.
- $750,000 and up would be taxed at 7.99 percent.
These brackets are for those who are single filers. There is some slight fluctuation on the tax brackets for those who are joint filers.
While most of the focus has been on moving to these graduated individual income tax rates, it should be noted that if the referendum passes, SB 687 provides for the income tax rate on corporations to increase from the current 7 percent to 7.99 percent of net income.
From April 13-26, 2020, an online poll of Illinois REALTORS® was conducted by National Association of REALTORS® (NAR) pollster, American Strategies. Of the 3,007 members who responded, 31 percent said that Illinois REALTORS® should SUPPORT a graduated state income tax, 27 percent said we should be NEUTRAL, and 43 percent said we should oppose a graduated state income tax.
Based on that feedback, Illinois REALTORS® will remain neutral on the measure but we will provide you with all the information available on the pros and cons of the proposal. Please see www.illinoisrealtors.org/advocacy/vote.
Additionally, the following links contain more information to help you in your decision-making and to explain it to your staff and clients:
BALLOTPEDIA SITE ON THE GRADUATED INCOME TAX
A general and neutral reference site containing an overview of the issue, and numerous links to other information sources, articles and studies both for and against the graduated income tax.
ILLINOIS CHAMBER SITE ON THE GRADUATED INCOME TAX
The Illinois Chamber is leading the OPPOSITION to the referendum. This site contains a comprehensive PowerPoint presentation on the issue.
ILLINOIS POLICY INSTITUTE SITE ON THE GRADUATED INCOME TAX
The Illinois Policy Institute is OPPOSED to the graduated income tax. At this site, the Illinois Policy Institute offers several articles/studies on the graduated income tax.
“Yes for Fair Tax” is a broad coalition of community, labor and faith organizations that SUPPORT the graduated income tax.
CENTER FOR TAX AND BUDGET ACCOUNTABILITY (CTBA) SITE ON THE GRADUATED INCOME TAX
The CTBA is a PROPONENT of the graduated income tax, and this website contains links to numerous CTBA articles and studies supporting the graduated income tax from a variety of angles.
