What is the tax rate for small businesses (S-corps)?

S Corporations pay Personal Property Replacement Tax (replacement tax) of 1.5 percent. Check the Tax Rate Database for details.  They do not pay Illinois Income Tax. Generally, income from an S corporation is passed on to the shareholders. The shareholders must include this income in their federal adjusted gross income (for individuals) or federal taxable income (for other taxpayers). This is the starting point for calculating Illinois Income Tax.

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