Illinois residents pay 10% of annual income to state and local taxes: study

ILLINOIS (WTVO) — According to a new report, Illinois residents pay 10% of their annual income to state and local taxes.

The analysis, by WalletHub, found that income, property, sales, and excise taxes combined cost each Illinois taxpayer 10.2% of their annual pay.

The study found that property taxes counted as the largest portion of residents’ tax burden, at 3.81%, with state excise and sales tax at 3.78%.

WalletHub also found that Illinois ranked 7th in the United States for the highest state and local tax burden, behind Hawaii, New York, Vermont, California, Maine, and New Jersey.

A 2023 poll found that 51% of Illinois residents cited high taxes as the primary reason they’d consider leaving the state.

According to the Illinois Policy Institute, the state lost population for nine consecutive years, a trend reversed by an influx of noncitizen migrants in 2023 to 2024, 4.6 times higher than the 2010-2020 average.

However, migrants accounted for 10.7% of the state’s population loss to other states, suggesting that Illinois’s economic conditions may have also affected that trend.