Illinois’ state and local effective tax rate ranks the highest in the nation, according to a new study of tax burdens imposed by the 50 states and the District of Columbia.
Illinois’ total tax burden – combining property levies on real estate and vehicles, the income tax and the sales and excise taxes – stood at 14.9 percent, the analysis by the website WalletHub.com reported. In comparison, the state with the lowest effective state and local tax rate, Alaska, has a rate of 5.7 percent, the study found.
The study compared tax rates applied statewide and locally against median-income households.
Illinois’ property tax was the second highest in the nation, with an effective rate of 7.7 percent, according to WalletHub. And overall, Illinois’ state and local tax burden was nearly 39 percent above the national average, with households making the median income in Illinois paying nearly $8,600 annually.
The analysis parallels another study of state tax burdens carried out by Kiplinger in October of last year. Illinois ranked fourth on the Kiplinger list of least tax-friendly states.
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Tax Burdens by State
| Overall Rank (Lowest to Highest) | State | Effective Total State & Local Tax Rates on Median U.S. Household | Annual State & Local Taxes on Median U.S. Household | % Difference Between State & U.S. Avg. | Annual State & Local Taxes on Median State Household | Adjusted Overall Rank (based on Cost of Living Index) |
| 1 | Alaska | 5.70% | $3,309 | -47.03% | $4,439 | 3 |
| 2 | Delaware | 6.14% | $3,567 | -42.90% | $4,047 | 1 |
| 3 | Montana | 7.07% | $4,106 | -34.28% | $3,968 | 2 |
| 4 | Wyoming | 8.05% | $4,673 | -25.20% | $4,902 | 6 |
| 5 | Nevada | 8.20% | $4,762 | -23.77% | $4,797 | 10 |
| 6 | Utah | 8.39% | $4,874 | -21.99% | $5,638 | 8 |
| 7 | Florida | 8.44% | $4,902 | -21.54% | $4,396 | 9 |
| 8 | Idaho | 8.56% | $4,972 | -20.41% | $4,431 | 4 |
| 9 | Colorado | 8.65% | $5,026 | -19.55% | $6,009 | 13 |
| 10 | Tennessee | 8.73% | $5,071 | -18.83% | $4,183 | 5 |
| 11 | District of Columbia | 8.93% | $5,184 | -17.02% | $8,487 | 41 |
| 12 | California | 8.94% | $5,190 | -16.92% | $7,703 | 36 |
| 13 | South
Carolina | 9.00% | $5,230 | -16.29% | $4,415 | 11 |
| 14 | Oregon | 9.10% | $5,287 | -15.38% | $5,948 | 17 |
| 15 | Alabama | 9.11% | $5,290 | -15.32% | $4,186 | 7 |
| 16 | West Virginia | 9.66% | $5,613 | -10.16% | $4,167 | 12 |
| 17 | Arizona | 9.69% | $5,627 | -9.93% | $5,350 | 21 |
| 18 | New Hampshire | 9.94% | $5,771 | -7.62% | $7,152 | 33 |
| 19 | North Dakota | 10.03% | $5,825 | -6.76% | $5,850 | 22 |
| 20 | New Mexico | 10.37% | $6,025 | -3.56% | $4,931 | 19 |
| 21 | Georgia | 10.44% | $6,066 | -2.90% | $5,403 | 14 |
| 22 | Louisiana | 10.49% | $6,094 | -2.46% | $4,922 | 16 |
| 23 | Hawaii | 10.60% | $6,157 | -1.45% | $8,826 | 44 |
| 24 | North Carolina | 10.61% | $6,165 | -1.32% | $5,340 | 15 |
| 25 | Virginia | 10.68% | $6,203 | -0.71% | $7,409 | 27 |
| 26 | Massachusetts | 10.81% | $6,277 | 0.47% | $9,175 | 43 |
| 27 | South Dakota | 11.03% | $6,407 | 2.55% | $5,626 | 25 |
| 28 | Vermont | 11.18% | $6,495 | 3.96% | $6,992 | 39 |
| 29 | Arkansas | 11.25% | $6,532 | 4.55% | $4,850 | 18 |
| 30 | Minnesota | 11.30% | $6,561 | 5.02% | $7,185 | 30 |
| 31 | Missouri | 11.30% | $6,562 | 5.03% | $5,653 | 20 |
| 32 | Oklahoma | 11.35% | $6,590 | 5.48% | $5,297 | 24 |
| 33 | Maryland | 11.40% | $6,619 | 5.95% | $9,392 | 46 |
| 34 | Maine | 11.71% | $6,799 | 8.83% | $6,323 | 40 |
| 35 | Indiana | 11.76% | $6,828 | 9.29% | $5,814 | 26 |
| 36 | Mississippi | 11.99% | $6,962 | 11.45% | $5,056 | 23 |
| 37 | Washington | 12.08% | $7,019 | 12.35% | $8,716 | 42 |
| 38 | Kentucky | 12.33% | $7,163 | 14.66% | $5,609 | 29 |
| 39 | New Jersey | 12.40% | $7,203 | 15.30% | $11,119 | 47 |
| 40 | Michigan | 12.43% | $7,220 | 15.57% | $5,951 | 28 |
| 41 | Texas | 12.71% | $7,380 | 18.14% | $6,576 | 34 |
| 42 | Iowa | 12.92% | $7,501 | 20.07% | $6,546 | 32 |
| 43 | Ohio | 13.05% | $7,580 | 21.33% | $6,247 | 31 |
| 44 | Rhode Island | 13.21% | $7,672 | 22.81% | $8,667 | 48 |
| 45 | Wisconsin | 13.32% | $7,734 | 23.79% | $7,199 | 38 |
| 46 | Kansas | 13.35% | $7,752 | 24.09% | $6,813 | 35 |
| 47 | Nebraska | 13.37% | $7,763 | 24.26% | $6,778 | 37 |
| 48 | New York | 13.74% | $7,978 | 27.71% | $10,074 | 51 |
| 49 | Pennsylvania | 13.78% | $8,004 | 28.12% | $7,580 | 45 |
| 50 | Connecticut | 14.41% | $8,370 | 33.98% | $10,987 | 50 |
| 51 | Illinois | 14.90% | $8,653 | 38.51% | $8,585 | 49 |
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