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Text Box: Income earned in Illinois or received by Illinois residents is taxed at 3 percent.  Partnerships and S-corporations pay a 1.5 percent personal property replacement tax and S-corporations' owners pay the 3 percent personal income tax on their share of the corporation's income.  There are no local personal income taxes in Illinois.  Retirement income is not taxed in Illinois. 
Source: www.illinoisbiz.biz
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