Illinois and Kansas Announce Mid-Year Tax Increases for 2017

Illinois and Kansas have just announced increases to individual income tax rates for 2017.

For Illinois, the flat marginal tax rate increased from 3.75% to 4.95%, effective 7/1/17. For supplemental withholding, the rate increased to 4.95%. Due to this mid-year increase, the 2017 marginal tax rate will be a blended rate of 4.35%.

For Kansas, the marginal tax table is being modified from a two-bracket table to a three-bracket table with increased rates. Previously, the marginal tax rate was 2.7% for the first $15,000 of taxable income ($30,000 if MFJ) and 4.6% for taxable income over this threshold. The new table will have bracket cutoffs of $15,000 and $30,000 ($30,000 and $60,000 if MFJ) with rates of 2.9%, 4.9% and 5.2%. This is retroactive to 1/1/17. With the increased marginal rates, the 2017 supplemental rate has also increased from 4.5% to 5.0%.

Questions? Tap into our expertise. Contact Orion's Tax Manager, Quentin Hormel.