Taxes in Decatur
Decatur's tax picture combines Illinois's real, statewide flat income tax with a genuinely elevated local property tax that runs even higher than Macon County's own already-above-average rate.
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Learn moreIllinois's flat income tax, with a real retirement exemption
Illinois levies a simple, flat 4.95% tax on wages statewide, but taxes NONE of a retiree's Social Security, pension, or 401(k)/IRA income -- see illinois.js for the full mechanic.
A real, above-county-average property tax
Macon County's own average effective rate ran 2.10%, but Decatur itself ran as high as 2.64% citywide, with specific ZIPs reaching 3.23% -- a real, disclosed tension against the city's genuinely low home values.
A genuinely high combined sales tax
Decatur's 9.25% combined sales tax runs genuinely high for a city of its size.
Key takeaways
- Illinois's flat 4.95% income tax exempts all retirement income -- a real, distinct positive for retirees.
- Decatur's own property tax rate runs above Macon County's already-elevated average, reaching 3.23% in some ZIPs.
- Decatur's 9.25% combined sales tax runs genuinely high.
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