Analysis: Illinois Now Has Highest Taxes in the U.S.


As talk of raising the state’s income tax rate as part of a ‘Grand Bargain’ in the Illinois legislature continues, and other ideas for raising taxes are floated, a new analysis finds that the state’s taxpayers are already paying the most in taxes of any state in the U.S.

The website ‘‘ did a comprehensive analysis of what taxpayers actually pay each year, and found that Illinois collected the most from each taxpayer on a percentage of income basis.  The median tax rate for an average Illinois household is 14.76%.  Wisconsin collected the 3rd most in taxes on a percentage basis at 13.60%.

Alaska has the lowest overall tax rate according to the analysis at 5.64% followed by Delaware and Montana.

The most glaring reason for both states ending up high on the high tax list were real estate taxes, which Wallethub found had an effective rate of 7.56% in Illinois, 2nd only to New Jersey.  Wisconsin’s effect property tax rate is 6.45%.

Evaluating taxes can be complicated because states and even localities all tax differently.  However, the Wallethub analysis reveals that compared to other states, Illinois residents are over-taxed, and unlike in Wisconsin, the political pressure appears to be to raise them even higher.

You can view Wallethub’s complete analysis here.

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