PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Melanie Krakauer (312) 607-4977

Average Illinois families paying $2,165 more in taxes despite state’s temporary tax relief
Illinois Policy Institute experts note one-time, $556 relief doesn’t outweigh annual increases from 24 new taxes and fees since 2019

CHICAGO (April 14, 2022) – Illinois lawmakers adjourned during the weekend after passing a budget, which included a year of stimulus checks and temporary tax savings amounting to $556 per family.

But families are still paying more in taxes than they were four years ago, an analysis finds. According to the Illinois Policy Institute, Illinois families paid a total of $2,721 in higher taxes since Gov. J.B. Pritzker’s 24 tax and fee hikes were imposed in 2019.

That breaks down to the average Illinois household paying roughly $680 more each year from 2019 to 2022 towards higher state and local gas taxes, vehicle registration fees, parking garage taxes and online sales tax – more than the one-time, $556 election-year relief. Giving back $556 after taking $2,721 means Illinois’ average family has paid $2,165 more to run government under Pritzker and while coping with a COVID-19 economy.

“Illinoisans deserve tax relief; especially given how many families are still struggling under the economic impacts of the pandemic. But the temporary stimulus lawmakers and the governor are touting is just an election-year gimmick, designed to make residents forget about the significant hikes in taxation that have occurred since Pritzker took office,” said Adam Schuster, vice president of policy at the Illinois Policy Institute. “The state will be struggling again once these tax hikes return in 2023.”

This doesn’t factor in an increase of $1,913 worth of property tax hikes. Pritzker campaigned on the promise of substantive property tax relief for residents, but Illinoisans have seen the opposite.

Tax hike versus relief: The election year relief includes a one-year suspension of Illinois’ 1% grocery tax and a six-month gas tax hike delay. The gas tax increase will instead hit on Jan. 1, 2023, after the election, with another following in July.

In addition, the federal payroll tax rate will increase automatically on businesses next year. Businesses will also face a state payroll tax hike right after the election.

To read more about the effects of the budget on Illinoisans, visit illin.is/taxrelief.

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.