Taxes in Champaign

Champaign layers a real, meaningfully elevated local property-tax rate on top of Illinois's already-high statewide average, alongside the state's simple flat 4.95% income tax and Champaign's own roughly 9.25% combined sales tax.

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A meaningfully elevated local property-tax rate

Champaign's own median effective property tax rate ran 2.24% -- above both Champaign County's own 2.06% average and Illinois's statewide 1.88% Tax Foundation-cited figure -- with the median homeowner paying roughly $4,466/year.

Illinois's flat income tax and its real retirement exemption

Illinois's simple flat 4.95% state income tax applies to wages, but Illinois taxes NONE of a retiree's Social Security, pension, or 401(k)/IRA income -- a real, substantial exemption detailed in illinois.js that applies in Champaign as anywhere else in the state.

A real, roughly 9.25% combined sales tax

Champaign's combined sales tax rate runs approximately 9.25% (6.25% state + 1.25% Champaign County + 1.75% Champaign) -- among the higher combined rates for this project's Illinois Tier A markets.

Key takeaways

Champaign's 2.24% effective property tax rate runs above both Champaign County and Illinois's statewide averages.
Illinois's flat 4.95% income tax fully exempts retirement income -- a real, substantial advantage for retirees specifically.
Champaign's combined sales tax runs approximately 9.25%, among the higher rates in this project's Illinois buildout.

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.