Illinois is now the highest-taxed state in the country, according to WalletHub’s latest annual study on state tax rates, a distinction that highlights the growing financial strain on families and job creators.
The report compares all 50 states and the District of Columbia across four key tax categories: real estate, vehicle property, income, and sales excise taxes. Illinois placed 51st overall, with 50th for real estate taxes and 47th for income taxes, making it the most burdensome state for residents and small businesses alike.
Illinois’ real estate tax rate is nearly 8%, second only to New Jersey, far above the national average. The study also found Illinois’ taxes are 51.8% higher than the U.S. average, with New York as the next closest at 34.9%. In contrast, states like Alaska, Delaware, and Wyoming impose the lowest taxes, creating more favorable conditions for families and job creators.
Additionally, WalletHub’s national survey revealed that 70% of Americans are more concerned about inflation than taxes, and nearly one-third would rather serve on jury duty than file their taxes. For Illinois families and entrepreneurs, these high tax rates exacerbate the state’s ongoing economic and fiscal challenges.
Illinois continues to face the highest tax burden in the nation, sparking ongoing discussions about how to address the impact on the state’s economic future.