Chicago will have one of the highest big-city rates in the country when the transit tax inches up Aug. 1.
By Adam Gorcyca | Illinois Policy Institute
Illinois’ high sales taxes are about to get higher in the Chicago area.
Across Illinois, the combined state and average local sales tax is 8.98%, according to the Tax Foundation. That’s eighth-highest in the U.S. and highest in the Midwest.
The state did end its 1% grocery tax Jan. 1, though more than half the local governments in Illinois have one.
For over a decade Illinois has been one of the nation’s least competitive states in terms of sales tax. The last time Illinois placed outside the top 10 highest sales tax rates was 2013.
Of the states bordering Illinois, Missouri has the highest combined average rate, but it’s still over a half a percentage point lower than Illinois’.
Wisconsin in particular stands out in comparison with Illinois, with a combined average rate of 5.72%, and Kentucky is not far behind, at 6%.
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