Illinois SCRA Benefits: State Service Member Act & No Tax
Part of: The Complete Guide to the SCRA
Illinois hosts Naval Station Great Lakes, Scott Air Force Base, and Rock Island Arsenal, and it backs military families with real state law, not just the federal floor. Three Illinois protections matter: a state service-member relief act, a lease statute, and zero tax on military pay.
What Illinois stacks on the federal floor
| Protection | Federal SCRA | Illinois |
|---|---|---|
| State civil-relief statute | n/a | ✓ Service Member Civil Relief Act (330 ILCS 63) |
| Lease termination | 50 U.S.C. § 3955 | ✓ 765 ILCS 705/16, dedicated statute |
| Guard/Reserve civilian job | USERRA on federal duty | ✓ State reemployment-rights act |
| State income tax on military pay | Depends on state | ✓ None. Subtracted on Schedule M |
The lease statute: a clean state right
765 ILCS 705/16 gives Illinois service members a direct lease exit. If you have served more than 29 days and get PCS orders, or deployment orders of 90 days or more, you can terminate the lease without penalty by delivering written notice to quit and a copy of the orders. It runs alongside the federal § 3955 right, so cite both and confirm your end date with the termination calculator.
The tax side: zero on military pay
Illinois does not tax military pay. On Schedule M, you subtract the military pay included in your federal income, covering active-duty pay and Guard or Reserve service. If Illinois is your home of record, your military pay is effectively free of Illinois income tax. Pair it with the tax-state election when you are stationed elsewhere.
The Illinois move list
- On your Illinois return, subtract your military pay on Schedule M.
- Lease exit: use 765 ILCS 705/16 and cite 50 U.S.C. § 3955, with written notice plus orders.
- The federal SCRA rides on top: 6% cap letters, foreclosure shields, and refund audits.
- On a qualifying activation: look to the Illinois Service Member Civil Relief Act (330 ILCS 63) for added protection.
- Calculate exact lease end dates with the termination calculator.
The law behind this: 765 ILCS 705/16
Termination of rental agreement by a service member on military orders: read the statute.
Frequently asked questions
Does Illinois have its own SCRA?
Yes. The Illinois Service Member Civil Relief Act (330 ILCS 63) is a state law that adds protections alongside the federal SCRA, and Illinois also protects Guard and Reserve civilian employment through its reemployment-rights act. The federal SCRA applies in Illinois at full strength on top of these.
How do I break a lease in Illinois on orders?
Illinois has a specific statute, 765 ILCS 705/16. A service member who has served more than 29 days and receives PCS orders, or deployment orders of 90 days or more, can terminate the lease without penalty by giving the landlord written notice to quit plus a copy of the orders. Cite it alongside the federal 50 U.S.C. § 3955.
Does Illinois tax military pay?
No. Illinois does not tax military pay. On Schedule M you subtract tax-exempt military pay included in your federal income, including active-duty pay and pay for serving in the Reserves or National Guard, even a Guard unit of another state. If Illinois is your home of record, your military pay is effectively free of Illinois income tax.
What is the first thing to handle in Illinois?
Confirm your military pay is subtracted on Schedule M. Run the federal SCRA for debt. For a lease, use 765 ILCS 705/16 with the federal statute. And on a qualifying activation, look to the Illinois Service Member Civil Relief Act for added protection. Great Lakes, Scott AFB, and Rock Island each run a legal office that handles SCRA disputes for free.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.