Understanding Taxes
Municipal Sales Tax / State Use Tax
Description
Non-Home Rule Sales Tax
The local non-home rule tax is a portion of the total sales tax you pay in Lincoln. The full combined rate for general merchandise in Lincoln for 2025 is 8.75%, which includes the following:
- State of Illinois: 6.25%
- Logan County: 2.0%
- City of Lincoln (non-home rule): 0.5%
You can verify the sales tax rate for any specific Illinois location using the MyTax Illinois Tax Rate Finder, an online tool from the IDOR.
State Income Tax
Description
Personal Property Replacement Tax
Personal property replacement taxes (PPRT) are revenues collected by the state of Illinois and paid to local governments to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entities were taken away in 1979.
Rates
- Corporations pay a 2.5 percent replacement tax on their net Illinois income.
- Partnerships, trusts, and S corporations pay a 1.5 percent replacement tax on their net Illinois income.
- Public utilities pay a 0.8 percent tax on invested capital.
Reference: https://tax.illinois.gov/localgovernments/personal-property-replacement-tax.html
Motor Fuel Tax
Description
Video Gaming Tax
Description
