Illinois Practice and Procedure

Illinois layers a second income tax on top of the first: the personal property tax replacement income tax, with its own set of payers, its own exemptions, and rates that have not moved since 1981. Knowing which entities the replacement tax reaches, and which it does not, decides most Illinois structuring questions before the regular tax is even computed. Residency is the other recurring question, because Illinois taxes a resident on everything and decides residency by purpose and domicile, with two regulatory presumptions a departing taxpayer has to rebut. This hub collects the questions that recur for businesses, trusts and individuals touching the state.