Illinois Taxes

In Illinois, state and local taxes are currently “regressive.” Working-class and middle-class families pay a disproportionate share of their incomes in taxes. Research shows that a number of reforms could promote tax fairness based on ability to pay, reduce tax burdens for working families to make them competitive with neighboring states, and support broad-based economic prosperity.

8th most unfair state and local tax system in the country
18th rank in total state government tax revenue per capita
7th rank in the nation in property tax collections per capita

Property taxes are relatively high and regressive in Illinois.

Local school districts depend on property taxes, which account for 63% of all K-12 education funding.

Middle-class homeowners pay 6% of their incomes in property taxes compared to just 1% for millionaires.

To stem property tax growth, Illinois could increase state funding for K-12 education and consolidate townships.

Illinois is one of only 8 states that has a flat-rate income tax system.

  • The Top 1 Percent takes home 65 times as much as the average taxpayer in the Bottom 99 Percent, but pays the same tax rate.

  • Illinois’ 4.95% tax rate is the same or lower than 4 other states with flat income taxes.

  • A total of 33 states have progressive (or graduated-rate) income tax structures.

Adopting a progressive income tax would provide tax relief while allowing the state to boost public investments.

A progressive income tax would cut taxes or keep them the same for 97% of Illinois taxpayers.

A progressive income tax would increase General Fund revenues by more than $3 billion per year.

States raising taxes on the wealthy had faster economic growth than their neighboring states.

Gov. Pritzker's fair tax proposal would: cut taxes for 97% of taxpayers, create a child tax credit in illinois and raise over $3 billion in revenue

Eight states raised taxes on high income taxpayers in recent years