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What is the income tax rate for exempt organizations?

Exempt organizations may be formed as either a corporation or a trust. Therefore, exempt organizations pay both Illinois Income Tax and the Personal Property Replacement Tax (replacement tax), but the rates differ.

Corporations

  • Income Tax:
    • 7 percent for income received or accrued on or after July 1, 2017.
      Note: Taxpayers with tax years ending on or after July 1, 2017 and before June 30, 2018, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2018-02, Illinois Income Tax Increase Guidance, and Informational Bulletin FY 2018-14, Blended Income Tax Rates For Use With Your 2017 Illinois Income Tax Returns, for more information.
    • 5.25 percent for income received or accrued on or after January 1, 2015 and before July 1, 2017.
      Note: Taxpayers with tax years ending after December 31, 2014, and before December 31, 2015, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2015-09, Illinois Income Tax Decrease, for more information.
    • 7 percent for income received or accrued on or after January 1, 2011, and before January 1, 2015.
      Note: Taxpayers with tax years ending after December 31, 2010, and before December 31, 2011, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2011-09, Illinois Income Tax Increase, for more information.
    • 4.8 percent for income received or accrued on or before December 31, 2010.
      Note: Check the Tax Rate Database for prior rates.
  • Replacement Tax: 2.5 percent of net income.

Trusts

  • Income Tax:
    • 4.95 percent for income received or accrued on or after July 1, 2017.
      Note: Taxpayers with tax years ending on or after July 1, 2017 and before June 30, 2018, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2018-02, Illinois Income Tax Increase Guidance, and Informational Bulletin FY 2018-14, Blended Income Tax Rates For Use With Your 2017 Illinois Income Tax Returns, for more information.
    • 3.75 percent for income received or accrued on or after January 1, 2015 and before July 1, 2017.
      Note: Taxpayers with tax years ending after December 31, 2014, and before December 31, 2015, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2015-09, Illinois Income Tax Rate Decrease, for more information.
    • 5 percent for income received or accrued on or after January 1, 2011, and before January 1, 2015
      Note: Taxpayers with tax years ending after December 31, 2010, and before December 31, 2011, must divide their total net income between the periods subject to different rates. See Informational Bulletin FY 2011-09, Illinois Income Tax Increase, for more information.
    • 3 percent for income received or accrued on or before December 31, 2010
      Note: Check the Tax Rate Database for prior rates.
  • Replacement Tax: 1.5 percent of net income.

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