Illinois’s entity-level taxes, tracked in your books all year.
Illinois layers a Personal Property Replacement Tax on entity net income — even pass-throughs owe it — pushes C-corps to a 9.5% combined rate, and offers an elective PTE tax. All of it is computed from your Illinois net income, so we keep that figure clean and supportable in your QuickBooks file. We keep the books; your CPA computes, makes the PTE call, and files.
If your file needs our paid diagnostic first, its fee is credited in full against the cleanup. Either way, you get a fixed fee in writing before any work starts.
Illinois rule: corporations pay a 2.5% replacement tax on their net Illinois income, and partnerships, trusts and S corporations pay 1.5%; the books keep Illinois net income clean so that base is supportable. Source: Illinois Department of Revenue.
Illinois’s entity-level taxes are computed from Illinois net income, so TechBrot keeps that figure clean in your QuickBooks file: the Personal Property Replacement Tax at 2.5% for C-corps and 1.5% for pass-throughs, the 9.5% combined C-corp rate, and the elective 4.95% PTE tax. Your CPA computes the liability, makes the PTE call and files.
They took something that felt overwhelming to me as a first-year business owner and made it simple.
What stood out the most was TechBrot Inc’s attention to detail.
Three Illinois taxes computed from your net income.
Illinois’s flat income tax is the simple part — the PPRT, the C-corp combined rate, and the PTE election are where the books matter.
The Personal Property Replacement Tax
An Illinois entity-level tax on net income: corporations pay a 2.5% replacement tax on their net Illinois income, and partnerships, trusts, and S corporations pay 1.5% (Illinois Department of Revenue). It was enacted in 1979 to replace revenue local governments lost when the new Illinois Constitution directed the legislature to abolish business personal property taxes. Pass-throughs owe the 1.5% at the entity level even though income flows to owners. We track Illinois net income; your CPA computes and files.The 9.5% combined C-corp rate
An Illinois C-corporation pays the 7% corporate income tax plus the 2.5% replacement tax — a combined 9.5% of net income (IDOR income tax rates). Partnerships and S corporations are not subject to the 7% tax (35 ILCS 5/205) and pay the 1.5% replacement tax, so entity choice is consequential. We keep the figures clean; your CPA computes.The elective PTE tax (4.95%)
Illinois lets S corporations and partnerships elect a 4.95% entity-level tax, with a matching credit for partners and shareholders. The current statute (35 ILCS 5/201(p), as amended by SB 1911, Public Act 104-0453, effective December 12, 2025) sets no end year: the election runs for taxable years ending on or after December 31, 2021 while the federal limit on individual state-and-local-tax deductions applies. Whether to elect is a key planning call; we keep the books so your CPA can model and support it.The Illinois net income your CPA needs, kept clean.
We keep Illinois net income reconciled — the PPRT computation, the PTE election, and filing stay with your CPA.
Illinois net income tracked
Entity-clean books
PTE-election-ready
Sales tax handled alongside
Multi-state apportionment support
Cleanup before handoff
What we do — and what we don’t.
What TechBrot does
- Track Illinois net income cleanly — the base for the PPRT and the PTE
- Track distributions, guaranteed payments, and add-backs distinctly
- Structure the books so your CPA can model and support the PTE election
- Keep sales tax and Chicago’s cloud tax clean in the same file
- Keep multi-state apportionment figures clean for the Illinois share
- Hand reconciled, computation-ready figures to your CPA
What your CPA does
- Compute the PPRT or the corporate income tax
- Advise on, model the outcome of, or make the PTE election
- File the PPRT, the income tax, or the PTE return
- Represent you before the Illinois Department of Revenue or provide tax advice
- Step 1
Free file review
A QuickBooks ProAdvisor reviews whether your books track the Illinois net income the PPRT and PTE need, at no cost. - Step 2
Written fixed-fee scope
Within 3 business days you get a written scope and fixed fee for cleanup and ongoing tracking. - Step 3
Track the figures
We get Illinois net income clean, track distributions and add-backs, and keep the apportionment figures supportable. - Step 4
Hand off to your CPA
Ahead of the deadline we hand reconciled, computation-ready figures to your CPA, who computes the PPRT, models the PTE, and files.
Automation handles the data entry. We handle the judgment.
Illinois’s entity taxes catch businesses off guard not because they’re hard to file but because the books behind them are messy — Illinois net income overstated, distributions blended, the PTE math unsupportable, multi-state apportionment unclear. Every one of those is a bookkeeping problem, and every one is what a QuickBooks ProAdvisor keeps clean so your CPA’s computation and election are accurate.
Records example: the entity’s Profit and Loss and Balance Sheet, with owner distributions, guaranteed payments and Illinois add-back items in separate accounts, so your CPA computes the replacement-tax base from figures that tie; an electing entity’s PTE payments sit in their own account, apart from owner draws.
We hold the line clearly: we keep Illinois net income reconciled, your CPA computes the PPRT, makes the PTE election, and files. Rates and the PTE rules change — we flag movement, your CPA confirms the current numbers and the election strategy.
Around Illinois.
Illinois QuickBooks ProAdvisor & bookkeeping
The state page: services, industries, cities and the Illinois tax terms in one place.Also in Illinois
Illinois cities
Not sure where your file stands? Start with the free QuickBooks file review · how Illinois compares: state-by-state tax quirks.
Illinois replacement tax & PTE questions.
What is the Illinois Personal Property Replacement Tax?
It’s an Illinois entity-level tax on net income, enacted in 1979 to replace revenue local governments lost when the new Illinois Constitution directed the legislature to abolish business personal property taxes. C-corporations pay 2.5%; S-corporations, partnerships, and trusts pay 1.5%. The key surprise is that pass-throughs owe the 1.5% at the entity level even though their income flows through to owners. We track Illinois net income cleanly so it’s supportable; your CPA computes and files. Confirm current rates with the Department and your CPA.
Why does an Illinois C-corporation face a 9.5% rate?
Because a C-corp pays the 7% Illinois corporate income tax plus the 2.5% Personal Property Replacement Tax, for a combined 9.5%. S-corporations and partnerships are not subject to the 7% corporate tax and pay the 1.5% PPRT at the entity level, so the gap makes entity choice consequential. We keep the figures clean so your CPA can compute either; the entity decision is your CPA’s and attorney’s.
What is the Illinois PTE election and is it still available?
The Pass-Through Entity (PTE) tax election lets S-corps and partnerships pay a 4.95% Illinois income tax at the entity level while the federal SALT deduction limit applies. It is still available: the current statute, as amended by SB 1911 (Public Act 104-0453, effective December 12, 2025), sets no end year — the election runs for taxable years ending on or after December 31, 2021. Whether to elect it is a recurring planning decision that depends on your owners’ situations. We keep the books so the entity-level payment and the owner-level credit are recorded correctly; your CPA advises on and makes the election.
What does TechBrot do for the PPRT and PTE?
We keep the figure all of it is computed from — Illinois net income — clean and reconciled in QuickBooks, track distributions, guaranteed payments, and add-backs distinctly, and keep multi-state apportionment supportable. That lets your CPA compute the PPRT, model the PTE election, and file accurately. We do not compute the liability, advise on or make the PTE election, or file the returns.
Do pass-throughs and small businesses really owe the PPRT?
Yes — partnerships, trusts, and S corporations pay a 1.5% replacement tax on their net Illinois income at the entity level, even though they’re pass-throughs. It’s a common surprise for owners new to Illinois or newly organized as a pass-through. We make sure your Illinois net income is tracked cleanly so the 1.5% is supportable; your CPA computes and files it.
Do you file my Illinois entity taxes?
No. TechBrot is a bookkeeping and advisory firm — we keep the books CPA-ready and coordinate with your CPA, who computes and files the PPRT, the income tax, and the PTE election. We don’t compute liabilities, advise on the election, file returns, or represent clients before the Department, and we are not affiliated with Intuit Inc.
Checked against the Illinois Department of Revenue.