With tax season ending April 18, it is time to take a closer look at what exactly that entails for the average Illinois resident. A study released by the personal finance website WalletHub, determined that Illinois has the ninth highest overall tax burden on its residents. To break it down, Illinois ranks tenth in the country for highest property tax and is in the top half of states for individual income and total sales and excise tax burdens.
This study is based around the idea of tax burdens rather than tax rates. Tax rates can vary wildly depending on a taxpayers’ different circumstances, but tax burdens will reflect the amount of an individual’s income that is paid in a variety of taxes. By looking at that percentage, it is easier to see the impact of taxes on the average person.
This study showed that when accounting for property, individual income, and sales and excise tax rates, Illinois residents lose 9.3% of their personal income to taxes. This division means almost one hour’s pay for every eight-hour work shift is being taken from Illinoisans when all taxes are accounted for.
Lastly, this study also found a wide disparity between two groups of states. When averaged, Republican states have a significantly lower total tax burden than Democratic states. By averaging the rank of states with the highest tax burden, Republican states have a lower tax burden than the national average, while Democratic states have a higher tax burden.
Illinois’ high tax burden coupled with record-high inflation are the major reasons that Senate Republicans continue to push for relief for Illinois families. Last week, Republican Senators made another public push for their measures that would provide Illinoisans with savings on food, drugs, childcare, and energy costs. You can review their proposals here.