It depends. You are correct that Illinois does allow you to claim local taxes paid to another state as a credit against Illinois taxes. However, that credit is limited to the amount of Illinois state taxes you are paying on the same income. And Illinois will already be giving you a credit for Missouri state taxes. When you come across this credit calculation, you can add the amount of local taxes you are paying to St. Louis also. The total figure will be compared to what you have to pay to Illinois on that same amount of income. The credit can lower your Illinois tax down to $0 but cannot increase your refund beyond Illinois tax that was withheld from your paycheck.
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