Capital Gains Tax in Illinois - Rate & 1031 Deferral

Illinois applies a single flat rate to capital gains: 4.95%, regardless of income level. Add the federal 20% and the 3.8% NIIT and the combined ceiling comes to 28.8%.

Illinois's capital gains rate, broken down

Because Illinois uses a flat rate, this breakdown doesn't shift by income bracket the way some states' figures do; run your own sale through the capital gains tax calculator to see it applied.

20% federal on the long-term portion of the gain
3.8% NIIT above the income threshold
4.95% flat from Illinois, same rate regardless of income level

Where the 1031 exchange fits

A 1031 exchange defers all three pieces by reinvesting the proceeds into a like-kind property. Model your specific numbers in the 1031 exchange calculator and get your deadlines from the timeline calculator.

Educational only. Illinois's flat rate has changed before and could again; confirm the current figure with a tax professional.

Things to know before you exchange

Illinois does not require anything beyond the federal 45-day identification and 180-day closing windows.
None of the Illinois numbers above change if you exchange into property located in a different state.