How much is capital gains tax on a home sale in Illinois?

It depends on your federal taxable gain after the Section 121 exclusion ($250,000 single / $500,000 married filing jointly if you qualify), plus any Illinois tax. Example on this page (default inputs): federal tax about $0, IL planning tax about $0 (4.95% flat (state)).

Does the primary residence exclusion apply in this state?

Yes — the $250k/$500k exclusion is a federal rule (IRC Section 121). It reduces federal taxable gain first. Illinois generally taxes remaining taxable income/gains under state rules after federal adjustments — confirm with a IL tax pro.

Is depreciation recapture taxed differently at the state level?

Federally, depreciation recapture on rental property is taxed at up to 25%. This calculator applies the Illinois planning rate to total federal taxable gain (a simplification). Your state return may treat recapture and ordinary income differently.

Where can I calculate federal-only real estate capital gains?

Use the main real estate capital gains tax calculator for a federal-focused estimate, then return here for a Illinois-specific planning view.

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Illinois · Chicago / suburbs

Illinois Real Estate Capital Gains Tax Calculator

Estimate federal tax on a Illinois home or rental sale — plus a IL state planning line (4.95% flat (state)). Includes Section 121 exclusion and depreciation recapture.

Example (default inputs): federal ~$0 · IL est. ~$0·Updated July 24, 2026

IL Property Sale Tax Estimator

Federal + Illinois planning estimate

Illinois state tax

Illinois uses a flat individual income tax rate that also applies to capital gains — there is no special lower state LTCG rate.

Sale Price ($)

Purchase Price ($)

Improvements ($)

Selling Expenses ($)

Depreciation Taken ($)

Rental/investment property only

Purchase Date

Sale Date

Primary Residence?

Years of Ownership

Years Lived In (Last 5 Years)

Must own 2+ years and live in 2+ of last 5 years for exclusion

Filing Status

Taxable Income ($)

Annual taxable income excluding this sale

Capital Gains Tax Results

Total Capital Gain

$120,000

$120,000 excluded (primary residence)

Holding Period

5.5 years

Long-Term

Federal LTCG Rate

N/A

Tax breakdown

Federal capital gains$0

IL state (est.)$0

Total tax$0

Net proceeds (after tax)

$470,000

Notes

•Primary residence exclusion removed $120,000 from taxable gain.
•Improvements of $50,000 increased cost basis and reduced gain.
•Keep records of purchase price, improvements, and selling costs. This tool is an estimate, not a filed return.

Illinois capital gains snapshot

Illinois uses a flat individual income tax rate that also applies to capital gains — there is no special lower state LTCG rate.

Planning estimate applies 4.95% to federal taxable gain after exclusion/recapture ordering. Local taxes are not included.