ILLINOIS CAPITAL GAINS TAX · TAX YEAR 2026
Illinois capital gains tax calculator
Illinois taxes capital gains as ordinary income, at its flat 4.95% rate, with no lower rate for long-term gains. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $2,475 of Illinois tax and $7,500 of federal income tax, $9,975 in all, and keeps $40,025.
Tax on your gain
- Total tax on the gain
- $9,975.00
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Illinois tax
- $2,475.00
- After-tax gain
- $40,025.00
- Effective rate
- 19.95%
Illinois tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax |
|---|---|---|
| $10,000 | $1,500 | $495 |
| $50,000 | $7,500 | $2,475 |
| $100,000 | $15,000 | $4,950 |
| $250,000 | $42,250 | $12,520 |
| $1,000,000 | $208,920 | $49,645 |
Illinois capital gains tax questions
Does Illinois tax capital gains?
Yes. Illinois taxes capital gains as ordinary income, at its flat 4.95% rate, with no lower rate for long-term gains.
How much Illinois tax is due on a capital gain?
A single filer with $75,000 of wages owes $2,475 of Illinois tax on a $50,000 long-term gain, 4.95% of the gain, and $12,520, 5.01%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Illinois tax short-term capital gains differently?
No. Illinois taxes a $50,000 short-term gain the same as a long-term one: $2,475 of Illinois tax. Federal tax is what changes: $11,064 on the short-term gain against $7,500.
What the calculator leaves out
- Certain capital gains on employer securities are subtracted with retirement income.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.