Illinois families will pay the highest combined state and local tax burden in the nation this year on the median U.S. income. That’s $13,099, which will consume more than 16.5% of their money.
By Patrick Andriesen | Illinois Policy Institute
Illinois will impose the nation’s highest state and local taxes on residents in 2025, costing each household $13,099 – or more than 16.5% of their annual income – a new WalletHub report found.
Illinois households earning the median U.S. income of $79,004 will face the highest taxes in the nation. Those taxes will be $4,472 higher than the national average, or nearly 52% more.
Illinois is surrounded by states with lower tax rates, a driving factor behind the continued loss of Illinoisans that has only recently been offset by involuntary and other relocation by international migrants.
A move to Iowa, the neighboring state with the next-highest combined state and local tax rate, would save an Illinois family $2,715 on that $79,004 U.S. median household income. A move to Missouri, which boasts the lowest combined tax rate among Illinois’ neighbors, would save the family $5,315.
Over 50% of Illinois voters polled said they would move out of state if given the chance, citing high taxes as the main reason.
Read more here.