Illinois will impose the nation’s seventh-highest state and local tax burden on residents in 2025. Taxpayers on average will pay over 10% of their annual income to support government, according to WalletHub. | AP Photo/Nam Y. Huh
By Patrick Andriesen | Illinois Policy Institute
Tax Day is coming, but the income tax represents just one of the many taxes Illinois will impose as part of the nation’s seventh-highest state and local tax burden in 2025.
Income, property, sales and excise taxes combined will cost each taxpayer 10.2% of their annual income, according to a new WalletHub report.
Of the three major tax categories tracked in the national analysis, WalletHub found property taxes consumed the largest portion of Illinoisans’ yearly earnings at 3.81%, followed closely by state excise and sales taxes at 3.78%.
Illinois’ flat income tax consumed the smallest portion of residents’ annual income. It saved the state from earning a higher overall spot on the list by landing Illinoisans almost exactly in the middle when only the state income tax was considered.
Illinois moved one spot higher for tax burden among U.S. states. It was No. 7 this year after ranking No. 8 in the 2024 survey.
Despite Illinoisans contributing a little over one-tenth of what they earn in a year to fund state and local governments, six states ranked ahead of Illinois when it came to tax burdens. Hawaiians will pay the most.
WalletHub found Hawaii residents paid nearly 14% of their annual earnings to fund government operations. Alaska had the nation’s lowest tax burden at 4.9%.
Read more here.