Illinois capital gains tax, 2026
Illinois taxes capital gains as ordinary income, at a flat 4.95%. On a $100,000 long-term gain, a single filer with $80,000 of other income pays $4,950 of Illinois tax, on top of $15,000 federal.
Questions
Does Illinois tax capital gains?
Yes, as ordinary income, at the same rates as wages and other income: 4.95%.
Is there a lower Illinois rate for long-term gains?
No. Illinois taxes long-term and short-term gains alike; only the federal tax distinguishes them.
State brackets for 2026 from the Tax Foundation; federal rates from IRS Rev. Proc. 2025-32. See every state. Estimates, not tax advice.
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