Illinois is setting the record in the nation for having the highest taxes.
WalletHub, a personal finance website, tagged Illinois as the most expensive state in the U.S. in terms of taxes after it studied the state's local and state taxes, income, real estate, vehicle property, and sales and excise taxes.
According to its study an average Illinois household pays close to $9,500 annually in state and local taxes, which is the highest compared to other states.
The study further revealed that Illinois has the highest overall effective state and local taxes. In the real estate department, Illinois is second-highest with New Jersey taking the top spot.
What catapulted Illinois in the top spot for the state with the highest taxes is its gas tax. According to analyst Jill Gonzalez, Illinois’ gas taxes are five times higher than Arizona, New Mexico or Mississippi.
She said that more than 38 cents are added to every gallon of gasoline in Illinois. The state also adds a general sales tax to the gasoline tax, which contributes to Illinois’ high tax rates.
The bottom line of the study is that if Illinois doesn’t do anything to reduce its taxes, residents will start leaving in droves to find another state where everything is cheaper.
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