Illinois residents pay 10% of their income in state and local taxes: study reveals
A new report from WalletHub reveals that Illinois residents pay an average of 10.2% of their annual income in state and local taxes, with property taxes making up the largest portion.
A recent analysis by WalletHub has shed light on the heavy tax burden placed on Illinois residents, revealing that they pay 10.2% of their annual income in state and local taxes. This includes a combination of income, property, sales, and excise taxes, with property taxes being the largest contributor.
The study highlights the high cost of living in Illinois, particularly when compared to other states in the U.S.
How does Illinois' tax burden break down?
According to WalletHub's study, Illinois' property taxes are the biggest portion of the state's tax burden, with 3.81% of a resident's annual income. Sales and excise taxes are not far behind at 3.78%
This means Illinois is ranked 7th in the U.S. list for the highest state and local taxes, being surpassed only by Hawaii, New York, Vermont, California, Maine, and New Jersey.
ALSO SEE: Canada issues new travel advisory on U.S. border officers' power to search electronic devices
How does Illinois’ tax burden affect residents
In 2023, a poll revealed 51% of Illinois residents claimed high taxes were the main reason why they would consider leaving the state. This is reflected in recent years due to Illinois' consistent population decline for 9 consecutive years.
However, this was compensated by an increase of non-resident immigrants between 2023 and 2024, which was 4.6 times higher than the 2010-2020 average. Nonetheless, they only accounted for 10.7% of the state's population loss to other states. Which means Illinois' economic condition continue to drive people away.