Illinoisans Pay Highest State, Local Taxes In U.S.: Study

CHICAGO — With tax season in full swing, Illinoisans are well aware of how much money is coming out of their wallets and going straight to the government. What residents may or may not know is that tax rates here in the Land of Lincoln are the highest of anywhere in the country, according to a new study.

The study, conducted by WalletHub, indicates that the average American household pays $10,000 in federal income tax. And although every American is responsible to file taxes, where they live and at which rate they are taxed at the state and local level, plays a major role in what they pay each year.

In Illinois, residents pay an average of $9,488 in state and local taxes every year, the WalletHub study showed. Illinoisans are paying at a tax rate of 15.01 percent, which is the highest in the United States and ranks higher than East Coast heavyweights Connecticut (14.85 percent) and New York (14.08 percent), the study showed.

The rate at which Illinoisans are taxed at the state and local level is nearly 39 percent higher than the U.S. average, and, by comparison, is nearly 10 percentage points higher than Alaska, which comes in at 5.84 percent, WalletHub found.

Illinoisans are also paying dearly at the gas pump as well. In addition to rising gas prices that have surged by about 45 cents per gallon in the past week alone, the state’s gas tax is the second-highest in the country, trailing only California.

Illinois was also found to have the second-highest real estate taxes in the country at 7.82 percent (trailing only New Jersey) but tied the lowest vehicle tax in the country, which proved to be the lone bright spot for the state in the study.