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Friday, November 22, 2024

Illinois’ combined local-state tax rate ranks highest among all states

Taxation

The effective state and local tax rate for median Illinois households now exceeds 15 percent – almost three times the rate for the state with the lowest levies – according to a ranking published by the financial-services website WalletHub.

Illinois’ 15.01 percent rate for median households is the highest for all 50 states and the District of Columbia, the study released this month states. The state and local tax burdens evaluated by WalletHub included property taxes, vehicle levies, income taxes, and sales and excise taxes. 

Illinois’ property tax came in at 7.82 percent, the second highest in the nation, and average Illinois residents pay the third highest gasoline taxes in the nation, the researchers found. The sales and excise tax burden was the 27th highest, according to WalletHub, while the state came in 13th highest for its income tax rate.

While average American households pay a uniform amount in federal income taxes on April 15 – $8,800 – residents in low-tax states may pay three times less than those in the most expensive states, including New York and Connecticut, the study said.

WalletHub compared the local and state tax rates to corresponding national median values on income, vehicles and real estate to determine relative tax obligations.

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State and Local Tax Burdens, From Lowest to Highest

StateEffective Real-Estate Tax RateReal-Estate Tax Rank ($)Effective Vehicle Property Tax RateVehicle Property Tax Rank ($)Effective Income Tax RateIncome Tax Rank ($)Effective Sales & Excise Tax RateSales & Excise Tax Rank ($)Effective Total State & Local Tax Rates on Median U.S. Household
Alaska4.11%33

($2,599)

0.00%1

($0)

0.00%1

($0)

1.73%5

($1,095)

5.84%
Delaware1.96%7

($1,240)

0.00%1

($0)

2.89%38

($1,828)

1.39%4

($882)

6.25%
Montana2.88%20

($1,818)

0.49%33

($311)

2.58%31

($1,631)

1.16%2

($733)

7.11%
Nevada2.07%9

($1,310)

0.71%40

($449)

1.00%11

($634)

4.15%20

($2,624)

7.94%
Wyoming2.09%10

($1,319)

0.71%41

($449)

0.00%1

($0)

5.25%39

($3,318)

8.05%
Florida3.06%24

($1,934)

0.00%1

($0)

0.00%1

($0)

5.17%38

($3,270)

8.23%
Utah2.15%12

($1,362)

0.00%1

($0)

2.44%27

($1,542)

3.75%10

($2,370)

8.34%
Idaho2.36%14

($1,492)

0.00%1

($0)

1.84%17

($1,165)

4.23%24

($2,672)

8.43%
Colorado1.76%3

($1,113)

0.71%39

($446)

1.92%18

($1,213)

4.15%21

($2,625)

8.54%
Tennessee2.45%15

($1,548)

0.00%1

($0)

0.10%7

($63)

6.17%45

($3,901)

8.72%
California2.60%16

($1,644)

0.26%27

($162)

1.36%13

($861)

4.74%33

($2,995)

8.96%
Oregon3.35%28

($2,116)

0.00%1

($0)

4.55%50

($2,876)

1.10%1

($694)

8.99%
South Carolina1.96%6

($1,238)

0.94%45

($593)

2.29%23

($1,449)

3.80%13

($2,402)

8.99%
District of Columbia1.93%5

($1,221)

0.00%1

($0)

2.45%28

($1,547)

4.66%31

($2,947)

9.04%
Alabama1.42%2

($895)

0.27%28

($172)

2.49%30

($1,573)

4.93%36

($3,114)

9.10%
Arizona2.29%13

($1,446)

0.66%38

($419)

1.46%14

($925)

5.11%37

($3,230)

9.52%
West Virginia2.01%8

($1,269)

0.66%37

($416)

3.04%43

($1,922)

3.98%16

($2,517)

9.69%
North Dakota3.38%30

($2,138)

0.00%1

($0)

0.59%9

($374)

6.06%43

($3,831)

10.03%
New Hampshire7.49%49

($4,738)

0.71%41

($449)

0.50%8

($317)

1.35%3

($854)

10.06%
New Mexico2.75%17

($1,740)

0.00%1

($0)

1.56%15

($984)

6.23%46

($3,939)

10.54%
Georgia3.17%26

($2,006)

0.00%1

($0)

3.00%42

($1,899)

4.39%28

($2,778)

10.57%
North Carolina2.90%21

($1,833)

0.48%32

($302)

2.87%36

($1,817)

4.36%27

($2,757)

10.61%
Louisiana1.88%4

($1,187)

0.04%25

($25)

2.10%20

($1,331)

6.61%49

($4,181)

10.63%
Hawaii0.96%1

($606)

0.00%1

($0)

3.74%47

($2,362)

5.96%42

($3,767)

10.66%
Virginia2.81%19

($1,779)

1.60%51

($1,012)

2.77%34

($1,754)

3.54%8

($2,238)

10.73%
Massachusetts4.22%34

($2,667)

0.89%44

($562)

2.83%35

($1,792)

2.96%6

($1,870)

10.90%
South Dakota4.52%35

($2,857)

0.00%1

($0)

0.00%1

($0)

6.64%50

($4,198)

11.16%
Missouri3.34%27

($2,111)

1.04%48

($656)

2.71%32

($1,712)

4.16%22

($2,631)

11.25%
Minnesota3.84%32

($2,429)

0.51%34

($321)

2.75%33

($1,740)

4.17%23

($2,638)

11.27%
Arkansas2.15%11

($1,358)

0.40%30

($253)

2.44%26

($1,540)

6.30%47

($3,982)

11.28%
Oklahoma3.09%25

($1,952)

0.00%1

($0)

2.28%22

($1,444)

6.07%44

($3,838)

11.44%
Maryland3.75%31

($2,370)

0.00%1

($0)

4.05%48

($2,558)

3.69%9

($2,333)

11.49%
Vermont6.54%47

($4,135)

0.00%1

($0)

1.32%12

($833)

3.76%12

($2,379)

11.62%
Indiana2.93%22

($1,853)

0.47%31

($300)

3.56%46

($2,252)

4.78%34

($3,025)

11.75%
Maine4.67%36

($2,953)

0.95%46

($599)

2.13%21

($1,349)

4.06%18

($2,565)

11.81%
Mississippi2.77%18

($1,751)

1.38%50

($875)

2.47%29

($1,563)

5.35%40

($3,381)

11.97%
Washington3.38%29

($2,134)

0.00%1

($0)

0.00%1

($0)

8.65%51

($5,468)

12.02%
Michigan5.29%38

($3,343)

0.23%26

($148)

2.95%40

($1,865)

3.75%11

($2,372)

12.22%
Kentucky2.95%23

($1,866)

0.57%35

($361)

5.01%51

($3,168)

3.94%15

($2,492)

12.48%
Texas6.18%45

($3,907)

0.00%1

($0)

0.00%1

($0)

6.60%48

($4,175)

12.79%
Rhode Island5.61%42

($3,548)

1.36%49

($859)

1.83%16

($1,156)

4.02%17

($2,540)

12.82%
New Jersey8.57%51

($5,419)

0.00%1

($0)

0.78%10

($496)

3.48%7

($2,202)

12.84%
Ohio5.36%39

($3,390)

0.00%1

($0)

3.14%44

($1,984)

4.67%32

($2,955)

13.18%
Iowa5.39%40

($3,407)

0.39%29

($250)

2.89%37

($1,828)

4.51%29

($2,850)

13.18%
Wisconsin6.37%46

($4,027)

0.00%1

($0)

2.96%41

($1,874)

3.88%14

($2,456)

13.22%
Nebraska5.94%44

($3,754)

0.63%36

($398)

2.08%19

($1,316)

4.62%30

($2,919)

13.27%
Kansas4.84%37

($3,060)

0.77%43

($486)

2.33%25

($1,470)

5.49%41

($3,472)

13.43%
Pennsylvania5.45%41

($3,442)

0.00%1

($0)

4.21%49

($2,663)

4.31%26

($2,725)

13.97%
New York5.93%43

($3,749)

0.00%1

($0)

3.33%45

($2,107)

4.81%35

($3,044)

14.08%
Connecticut7.37%48

($4,658)

1.03%47

($651)

2.30%24

($1,451)

4.14%19

($2,620)

14.84%
Illinois7.82%50

($4,942)

0.00%1

($0)

2.90%39

($1,834)

4.29%25

($2,712)

15.01%
Source: WalletHub.com

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