Capital Gains Tax for Illinois (2026)
Illinois (IL) Key Facts
State Capital Gains Rate
4.95%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Illinois
This calculator estimates your combined federal and Illinois capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Illinois Overview
Illinois taxes capital gains as ordinary income at its flat 4.95% rate. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How Illinois Compares
Illinois's capital gains rate of 4.95% compares to Indiana at 3.05% and Wisconsin at 7.65%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Indiana | 3.05% | Indiana has a capital gains rate of 3.05%. |
| Wisconsin | 7.65% | Wisconsin has a capital gains rate of 7.65%. |
| Missouri | 4.8% | Missouri has a capital gains rate of 4.8%. |
Illinois's capital gains rate of 4.95% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Illinois Residents
- 1Illinois taxes capital gains as ordinary income at its flat 4.95% rate.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. Illinois's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and Illinois state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 28.8% for high earners.