Cost Competitive Location
Our state tax rates are very competitive with other top business location states, resulting in lower business costs.
| More Information |
| Illinois corporations pay a flat income tax of 4.8%, as well as a 2.5% replacement tax. The personal income tax rate is a flat 3%. Taxes are based on reported federal income. |
| The minimum unemployment tax rate is 1.0%, and the maximum is 8.2%. Small businesses have a 5.4% maximum tax rate. The new employers’ unemployment tax rate is 3.9%. The taxable wage base is $11,500. |
| Lower real estate taxes. Lake County offers an attractive location for businesses to grow and prosper. In a recent study conducted by Deloitte & Touche, it was noted that “Lake County has a marketable advantage over Chicago,” offering an attractive alternative to the higher real estate taxes found in the downtown area. |
| Lower labor costs. Despite the county’s high level of affluence, Lake County business leaders characterize the cost of unskilled and semi-skilled labor as “surprisingly competitive.” |
| Workers compensation in Illinois is managed through self-insurance. Rates vary according to company history, size, and product. However, the average workers compensation insurance rate is $2.69. |
| The fundamental sales tax rates in Lake County for general merchandise is 6.5%. Of this amount, 5% is paid to the state of Illinois, 1% is paid to the local community, .25% is paid to the county, and .25% is paid to the Regional Transportation Authority (RTA). The Illinois sales tax rate on qualifying food, drugs and medical appliances is 1%, which all is allocated to the local municipality. Some communities have the authority to add additional sales tax, by home rule status, local referendum, or enterprise zone / TIF district location. |
| Illinois taxpayers are subject to a State telecommunications tax of 7% of gross charges, as well as local telecommunications taxes that can range from 0 – 6%. |
Source: Illinois Department Revenue & Illinois Department of Commerce and Economic Opportunity
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