Taxes & Fees

Utility Rates

View the current utility rates (water, sewer, garbage, storm water and Bloomington-Normal Water Reclamation District).

Income Tax

The State of Illinois collects a 3.75% flat tax on residents’ income.

• State income tax received is distributed to Illinois municipalities based on population.
• For more information on Illinois income tax, see the Illinois Department of Revenue website.

The federal government charges an income tax to United States citizens.

• Tax rates vary based on income levels.
• To find your federal tax rate / bracket, visit the IRS website.

Sales Tax

The State of Illinois collects a sales tax at a rate of 8.75%, which is distributed as follows:

The 3.50% received by the Town of Normal is used primarily for support of General Fund operations with a small percentage being used to support the Uptown Renewal Program.

Use Tax

The Town of Normal collects a 0.75% tax on titled items sold to residents. Examples of titled items include automobiles, motorcycles and trailers. The tax supports General Fund operations. For dealerships ONLY, download a Use Tax Dealership Return form. For more information, view the Frequent Asked Questions.

Hotel/Motel Tax

A local 2% tax is issued on the sale of all food and alcoholic and nonalcoholic beverages that are prepared for immediate consumption (which may be consumed on and/or off the premises). The tax supports General Fund operations and the Uptown Renewal Program.

Collection of Food and Beverage Tax is handled by the City of Bloomington for both Bloomington and Normal businesses. Information and forms can be found on the City of Bloomington website or by calling the Bloomington Finance Department at (309) 434-2233.

Liquor Tax

A 4% tax rate is collected by the Town of Normal on all packaged liquor sales. A portion of this tax supports specific Police Department operations. Download a Liquor Tax Return form.

Utility Tax

The Town collects utility tax from suppliers of electricity, gas, cable and telecommunications at varying tax rates:

• Electricity tax rates are based on kilowatt hours used.
• Gas tax rates are based on Therms consumed.
• Cable tax rates are 5% of gross receipts for cable charges.
• Telecommunications tax rates are 6% of gross telecommunications charges.

Local Motor Fuel Tax

The Town of Normal collects a $0.08 per gallon tax (as of December 1, 2020) on motor fuel that is purchased at retail. The tax supports General Fund operations. Motor Fuel Retailers must complete a LMFT Tax return form.

Motor Fuel Tax

• This tax on fuel is collected by the State of Illinois and used to finance street improvement projects throughout the state.
• The State of Illinois distributes the revenues from this tax to municipalities based on population.
• The tax is assessed per gallon so the cost of fuel does not impact the amount of tax collected.

Property Tax

This local tax is distributed to nine different taxing bodies (see below). The assessed value of local property is taxed at a rate of $9.25 per $100 Equalized Assessed Valuation (EAV). This rate corresponds with the 2021 tax year for taxes paid in 2022.

Property Assessment

In Illinois property is assessed at 1/3 its fair market value. For example, if you own a home worth $180,000:

• Your assessed value will be approximately $60,000 ($60,000 = $180,000 / 3).
• Your property tax bill would be approximately $5,514 ($5,514 = $60,000 / 100 x $9.19).
• The $5,514 tax bill is then split between the nine local taxing bodies at the percentages listed above. Based on these percentages the Town of Normal only receives $618 of this tax bill ($618 = $5,514 x 11.2%).

For information regarding exemptions from property taxes, visit the website for the Assessor's Office of Normal Township.