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Saturday, March 15, 2025

Illinois ranks last in WalletHub's study on state tax rates

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State Representative Amy Grant (il) | Representative Amy L. Grant (R) 47th District

State Representative Amy Grant (il) | Representative Amy L. Grant (R) 47th District

Illinois residents face some of the highest tax burdens in the United States, according to a recent WalletHub study. The report ranks Illinois 51st, placing it last among all states and Washington, D.C., for tax rates.

The state's combined state and local tax rate stands at 16.6%, significantly higher than the national average of 10.9%. This means that families in Illinois pay approximately 52% more in taxes compared to the average American household.

A median U.S. household residing in Illinois contributes $13,099 annually to state and local taxes. These funds could otherwise be allocated toward savings, education, or future investments.

"This ranking is a wake-up call," stated an unnamed source from the original press release. "We need tax relief for Illinois families, not more burdensome policies that make it even more expensive to live and work here."

The source further emphasized the necessity for leadership focused on reducing taxes and promoting fiscal responsibility: "It’s time for responsible leadership that prioritizes lower taxes, fiscal responsibility, and a better future for hardworking Illinoisans."

WalletHub's report titled "States with the Highest & Lowest Tax Rates" was released on March 4, 2025.

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