Selling investments in Illinois: federal and state capital gains
How federal and Illinois state taxes apply to capital gains, with a worked example.
Key facts
| Place | Illinois |
|---|---|
| Sales tax | State sales tax |
| Standard rate on file | 6.25% |
| Multiply net price by | 1.0625 |
| Tax share of a gross price | 5.88% |
| Currency | USD |
Federal treatment
Long-term gains on assets held more than a year are taxed at 0%, 15% or 20% federally depending on income, plus a possible 3.8% net investment income tax. Short-term gains are taxed as ordinary income.
Worked example
Here is the calculation with sample figures. Change any number in the Illinois Capital Gains Tax Calculator to run your own.
| Purchase price | $15,000.00 |
| Sale price | $22,500.00 |
| Costs and fees | $300.00 |
| Tax rate (%) | 20% |
| Taxable gain | $7,200.00 |
|---|---|
| Tax | $1,440.00 |
| Net amount | $20,760.00 |
State treatment
Most states tax capital gains as regular income. Check whether Illinois offers any exclusion; the calculator lets you combine federal and state rates into one figure.
Quick reference at 6.25%
Common amounts in Illinois, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| $10.00 | $0.62 | $10.62 | $9.41 |
| $50.00 | $3.12 | $53.12 | $47.06 |
| $100.00 | $6.25 | $106.25 | $94.12 |
| $250.00 | $15.62 | $265.62 | $235.29 |
| $500.00 | $31.25 | $531.25 | $470.59 |
| $1,000.00 | $62.50 | $1,062.50 | $941.18 |
| $5,000.00 | $312.50 | $5,312.50 | $4,705.88 |
How Illinois compares
Standard rates on file for other states. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 6.25% |
|---|---|---|
| Georgia | 4% | lower |
| Hawaii | 4% | lower |
| Idaho | 6% | lower |
| Indiana | 7% | higher |
| Iowa | 6% | lower |
| Kansas | 6.5% | higher |
Using the calculator step by step
- Open the Illinois Capital Gains Tax Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 6.25%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Withholding
- Tax deducted at source, by an employer or payer, before the money reaches you.
- Reduced rate
- A lower rate that applies to specific categories, often essentials such as food, medicine or books.
- Deduction
- An amount subtracted from taxable income. It saves tax equal to the deduction times your marginal rate.
- Gross amount
- The amount after tax is added, which is usually what a consumer pays.
- Marginal rate
- The rate applied to the next unit of income. It decides how much of a raise or a deduction you keep.
Common mistakes to avoid
- Treating short-term gains as long-term.
- Forgetting state tax on gains.
Run your own numbers. The Illinois Capital Gains Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
What is the federal long-term capital gains rate?
0%, 15% or 20% depending on taxable income, plus possibly 3.8% NIIT.
Does Illinois tax capital gains?
Many states do as ordinary income; confirm current Illinois rules.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.