Taxes in Peoria
Peoria 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 Peoria's own roughly 9.0% combined sales tax.
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Learn moreA meaningfully elevated local property-tax rate
Peoria's own median effective property tax rate ran 2.69% per Ownwell -- above both Peoria County's 2.24% average and Illinois's statewide 1.88% Tax Foundation-cited figure -- even as the City of Peoria's own FY2026 truth-in-taxation levy rate held flat from the prior 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 Peoria as anywhere else in the state.
A real, roughly 9.0% combined sales tax
Peoria's combined sales tax rate runs approximately 9.0% (6.25% state + 1.75% city + 1% Peoria County), with some specific ZIP codes within the city running higher.
Key takeaways
- Peoria's 2.69% effective property tax rate runs above both Peoria County and Illinois's statewide averages.
- Illinois's flat 4.95% income tax fully exempts retirement income -- a real, substantial advantage for retirees specifically.
- Peoria's combined sales tax runs approximately 9.0%, with real ZIP-level variation.
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