Illinois has the third-highest corporate income taxes in the nation. These are some of the most harmful taxes to economic growth, particularly in times of economic hardship.
The median Chicago residence paid $2,059 in property taxes just to support Chicago Public Schools in 2024, 62% more than they paid 15 years ago. More than half of a Chicago homeowners’ property tax bill now goes to CPS.
Many Illinois towns are rushing to extend the 1% grocery tax. See below if your town is one of them. The statewide tax ends in 2026, but local governments can choose to retain it without asking their residents for permission.
Illinois Gov. J.B. Pritzker’s budget proposal slashes general funds for economic development while relying on federal dollars to mask the cuts. This move raises doubts about the governor’s fiscal priorities.
More than half of Illinois voters said high taxes were the No. 1 concern for the state, according to an Illinois Policy Institute poll. Of those polled, nearly half said they would also move out of the state if given the chance.
The Chicago Teachers Union and its partners are pushing nine new or higher taxes that could end up costing Illinoisans $7.3 billion more starting July 1. Their scheme to fill a proposed state budget deficit is likely to backfire and shrink the tax base.
Deep-blue Illinois had President Biden to bail out the state’s and Chicago’s financial failings. Now city and state leaders have President Trump to blame for their financial failings. Eventually, taxpayers will be held responsible.
Illinois motorists should expect another motor fuel tax increase this summer when the gas tax jumps again. Illinoisans already pay the second-highest gas taxes in the country, but state leaders are worried about not having enough to spend.
Illinois’ inefficient spending on its transportation needs led the state to spend more as its roads got worse. But there is a solution if the state can minimize politics in the decision process and prioritize public need.
Kane County voters sent a strong message by voting down a sales tax increase on April 1. They joined voters in several townships who asked for pension reform to control taxes and a town that rejected a grocery tax.
Just over 5% of the average state income tax return supports economic development and public safety, while almost 28% goes to government worker pensions and benefits. Here’s a breakdown of how Illinois will spend your state income taxes.
Illinois lawmakers are looking at a bill that would cut sales taxes during back-to-school shopping. Illinois hasn’t had a sales tax holiday in years. The bill would lower the state sales tax from 6.25% to 1.25% on clothes and school supplies for six days in August 2025.