Prairie State Wire

Federal, state and local taxes imposed on Illinois cell phone customers are the highest in the nation, with the combined tax rate estimated at 34.6%, according to a new study by the Washington, D.C.-based Tax Foundation.

Illinois’ state and local tax rate on wireless users was estimated at 22.8%, with the federal Universal Service Fund (FUSF) rising to 11.8% as of July 1, the Tax Foundation reported. In contrast, the typical combined wireless tax rate in the U.S., based on a weighted average calculated in the study, was estimated at 25%.

The primary driver of increases in the wireless rates among the 50 states has been the FUSF rate, which rose from 9.8% in 2020 to 11.8% this year, the Tax Foundation reported.

While wireless taxes have been on the rise in recent years, the service costs for individual cell phone customers have trended downward, the study found. The average cost of a wireless line went from $41.50 in 2017 to $35.31 this year, according to the Tax Foundation.

Wireless customers will pay about $11.3 billion in taxes, government surcharges and fees to state and local agencies, the report said. These tax revenues include sales taxes, state and local 911 fees, and other taxes related to telecommunications, according to the Tax Foundation.

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Taxes, Fees and Government Charges on Wireless Service

Rank	State	Wireless State-Local Rate	Federal Universal Service Fund Rate	Combined Federal/State/Local Rate
1	Illinois	22.76%	11.80%	34.56%
2	Arkansas	20.25%	11.80%	32.04%
3	Washington	20.02%	11.80%	31.81%
4	Nebraska	19.57%	11.80%	31.36%
5	New York	18.93%	11.80%	30.73%
6	Kansas	17.69%	11.80%	29.49%
7	Pennsylvania	16.67%	11.80%	28.47%
8	Utah	16.15%	11.80%	27.95%
9	Maryland	15.70%	11.80%	27.50%
10	Rhode Island	15.54%	11.80%	27.34%
11	North Dakota	15.50%	11.80%	27.30%
12	Florida	15.03%	11.80%	26.83%
13	Missouri	14.91%	11.80%	26.71%
14	Oklahoma	14.65%	11.80%	26.44%
15	South Dakota	14.56%	11.80%	26.36%
16	Alaska	14.34%	11.80%	26.14%
17	California	14.05%	11.80%	25.85%
18	Puerto Rico	13.79%	11.80%	25.59%
19	Tennessee	13.75%	11.80%	25.55%
20	South Carolina	12.85%	11.80%	24.65%
21	New Mexico	12.87%	11.80%	24.66%
22	Arizona	12.67%	11.80%	24.46%
23	Colorado	12.71%	11.80%	24.51%
24	Indiana	12.28%	11.80%	24.08%
25	Georgia	12.62%	11.80%	24.42%
26	District of Columbia	12.15%	11.80%	23.95%
27	Texas	11.91%	11.80%	23.71%
28	Kentucky	11.29%	11.80%	23.09%
29	Alabama	11.27%	11.80%	23.07%
30	Minnesota	10.84%	11.80%	22.64%
31	West Virginia	10.88%	11.80%	22.67%
32	Massachusetts	10.50%	11.80%	22.30%
33	Michigan	10.45%	11.80%	22.25%
34	Louisiana	10.08%	11.80%	21.87%
35	Mississippi	9.97%	11.80%	21.77%
36	Iowa	9.92%	11.80%	21.71%
37	Wyoming	9.25%	11.80%	21.04%
38	New Jersey	9.17%	11.80%	20.97%
39	New Hampshire	9.12%	11.80%	20.92%
40	North Carolina	9.07%	11.80%	20.87%
41	Vermont	8.90%	11.80%	20.70%
42	Maine	8.83%	11.80%	20.63%
43	Ohio	8.57%	11.80%	20.37%
44	Connecticut	8.28%	11.80%	20.07%
45	Hawaii	7.91%	11.80%	19.71%
46	Wisconsin	7.74%	11.80%	19.54%
47	Oregon	7.71%	11.80%	19.51%
48	Virginia	7.32%	11.80%	19.12%
49	Montana	6.87%	11.80%	18.66%
50	Delaware	6.76%	11.80%	18.55%
51	Nevada	3.74%	11.80%	15.53%
52	Idaho	2.83%	11.80%	14.63%
	Weighted Avg.	13.16%	11.80%	24.96%
	Simple Avg.	12.14%	11.80%	23.94%

Source: Tax Foundation