Illinois House Republicans announced that the state’s high corporate income tax rate makes Illinois less competitive and less attractive for business, and urged business-friendly policies to grow jobs, create opportunities, and spur investment.
According to a post by the Illinois House Republicans on X, the state’s corporate income tax rate stands at 9.5 percent, ranking as the third highest in the United States. The post argues that this high rate is detrimental to the state’s business environment and calls for reforms to enhance economic opportunities within Illinois.
The Illinois Policy Institute has reported that this tax rate has contributed to one of the slowest economic recoveries in the nation following the pandemic. Over the past five years, Illinois has added only 9,200 jobs, placing it 47th in national job growth rankings. The institute notes that lower tax rates in states such as Florida and Texas have been significant factors driving businesses away from Illinois.
The Tax Foundation highlights that the average top marginal corporate income tax rate across U.S. states is approximately 6.57 percent as of 2026. Only four states impose rates of 9 percent or higher: New Jersey at 11.5 percent, Minnesota at 9.8 percent, Illinois at 9.5 percent, and Alaska at 9.4 percent. Conversely, states with lower corporate tax rates like North Carolina have shown stronger job growth and better economic performance.
The Illinois House Republican Caucus represents a broad spectrum of residents throughout Illinois and emphasizes its commitment to addressing their needs through legislative efforts in Springfield. It advocates for quality education, safe communities, well-paying jobs, essential services for those in need, and support for veterans.
