Illinois

Poor Families in Illinois Are Hit Harder by the Income Tax Than Those in Other States

 

Illinois’ 1999 income tax threshold — the income level at which families begin paying income tax:	Ranking among 42 states with income taxes
For two-parent families of four: $6,600.	3rd lowest
For single-parent families of three: $5,000.	2nd lowest (tie)
Illinois’ 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $313.	5th highest
For families of three with incomes at the poverty line ($13,290): $250.	5th highest
For families of three with minimum-wage earnings ($10,712): $173.	3rd highest
For families of four with incomes at 125% of the poverty line ($21,285): $441.	9th highest
For families of three with incomes at 125% of the poverty line ($16,613): $350.	9th highest
Despite progress, Illinois continues to tax families with incomes below the poverty line. As a result of changes enacted in 1998, Illinois’s tax threshold for families of four increased in 1999, and further increases are scheduled for 2000. However, a substantial gap remains between the threshold and the poverty line. In 1991, a family of four owed tax when its income exceeded 29 percent of the poverty line. For 1999, Illinois’ tax threshold equals 39 percent of the poverty line.