Illinoisans continue to pay the highest combined state and local tax rate in the country, according to WalletHub.
Effective state and local tax rates totaled almost 17% for a median Illinois household last year, compared with the national average of just over 11.02% and higher than No. 2 New York, at 14.95%.
The median amount of state and local taxes for an Illinois household was $12,538 last year, fourth-highest in the country. The national median was around $8,949. (These amounts use a different household measurement.)
Illinois’ burden is driven by property, sales and excise taxes that exceed national averages and those in neighboring states.
Property taxes are especially high, with an effective rate of 1.92% of the value of a typical home, more than double the national median of 0.89%.
Sales taxes are also elevated in Illinois, with a 6.25% state rate and a nearly 9% combined state and local rate on average.
Read more from the Illinois Policy Institute.
In an effort to provide desperately needed relief to Illinoisans, Deputy Republican Leader Ryan Spain has filed HB 5738. The bill provides sales tax relief in way of a six-month temporary gas sales tax holiday from July 1, 2026, to December 31, 2026. Spain says it is the right thing to do for both consumers and the state’s economy.