Kane County Reporter

Illinois state Rep. Martin McLaughlin brought attention to a WalletHub survey that ranked Illinois last in the United States for taxpayer friendliness with a March 21 Facebook post.

"According to a new study from the personal-finance website WalletHub," McLaughlin wrote, "Illinois’ combined state and local tax rate of nearly 15.1% is the highest among all 50 states and the District of Columbia."

The Tax Foundation, which monitors Illinois tax rates, collections, and burdens, reported that the state’s taxes rank 36th overall in their 2023 State Business Tax Climate Index.

Illinois has a 4.95% individual income tax rate, according to the Tax Foundation. Illinois also has a 9.50% corporate income tax rate, a 6.25% state sales tax rate, and a 4.75% max local sales tax rate. The total state and local sales tax rate is 8.82%.

The state and local individual tax collections per capita amount to $1,726 while the state and local tax burden remains at 11.1%, according to the Tax Foundation website.  

For these reasons and more McLaughlin believes Illinois needs urgent tax relief.

"The dubious distinction comes at a time when Illinois is forecast to bring in billions in revenue above projected estimates and underscores the urgent need for permanent tax relief," McLaughlin stated.

Every year, the average U.S. household pays nearly $11,000 in federal income taxes, according to WalletHub. The states with the highest taxes pay two times more than those in the cheapest states.

The website ranked Illinois, Connecticut, New York, Pennsylvania, and Kanas as the worst states for taxes and Alaska as the best. After Alaska, the lowest tax rates were found in Delaware, Montana, Nevada, and Wyoming.

"In Illinois, state and local tax payments by households making the median U.S. income amounted to $10,463, the highest amount in the nation," McLaughlin wrote. "When adjusted for cost of living, Illinois still ranks 47th on the list."