ILLINOIS — Despite doubling the number of tax filers reporting over $1 million in annual income since 2010, Illinois still ranks 5th-worst in the nation for millionaire growth, according to a new review of IRS data by Wirepoints.
From 14,110 millionaire filers in 2010, Illinois increased to 30,220 by 2022, reflecting a 114% gain. However, analysts warn that much of this growth is offset by inflation, and Illinois’ numbers pale in comparison to neighboring states.
“Even with inflation-adjusted gains, Illinois lagged behind every single bordering state in millionaire growth,” the Wirepoints analysis noted.
Neighboring States Are Surging Ahead
While Illinois saw 114% growth in millionaire tax filers, neighboring states experienced significantly stronger growth over the same 12-year period:
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Iowa: Up 222%
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Kentucky: Up 180%
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Missouri: Up 160%
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Wisconsin, Indiana, and Michigan: Also outpaced Illinois
“Illinois’ 114% growth was only better than four other states in the entire country,” Wirepoints reported.
The data is based on IRS Statistics of Income (SOI) from 2010 and 2022, and includes filers with adjusted gross income (AGI) over $1 million.
Inflation May Be Masking Weak Economic Growth
Wirepoints cautions that while Illinois did technically double its millionaire count, roughly 40% of that increase could be attributed to inflation alone.
“This means actual growth — adjusted for inflation — is significantly lower, making the state’s economic competitiveness even more questionable,” said the report.
Rust Belt Argument Fails When Neighbors Outperform
Some may attribute Illinois’ sluggish high-income growth to its Rust Belt positioning, but analysts counter that even fellow Rust Belt states dramatically outpaced Illinois.
The disparity raises questions about tax policy, business environment, and outbound migration of high earners.
How This Affects Illinois Moving Forward
While the number of wealthy taxpayers technically increased, the slow rate of growth relative to other states could have long-term consequences:
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Fewer wealthy residents mean less high-income tax revenue
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Slower growth may deter investment and job creation
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Could signal ongoing outbound migration of top earners
The concern isn’t just about image — it’s about revenue stability and economic health.
Is Illinois Still Competitive For High Earners?
Do you think Illinois is losing its appeal to top earners and business owners? What can be done to reverse the trend? Share your views now on ChicagoSuburbanFamily.com.
