Taxes in Elgin

Elgin 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 Elgin's own roughly 8.5% combined sales tax.

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A meaningfully elevated local property-tax rate

Elgin's own median effective property tax rate ran 2.55% this pass -- above Illinois's statewide 1.88% Tax Foundation-cited figure -- with real ZIP-level variation from roughly 2.65% to 2.83% depending on specific school-district and taxing-district overlap.

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 Elgin as anywhere else in the state.

A real, roughly 8.5% combined sales tax

Elgin's combined sales tax rate runs approximately 8.5% (6.25% state + 1.5% Elgin + 0.75% special taxing district), with some aggregators citing a minimum combined rate up to 8.75%.

Key takeaways

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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.