CHICAGO — Illinois residents are shouldering one of the heaviest tax loads in the country, according to a new report that places the state 7th in the nation for state and local tax burden in 2025.
The analysis, conducted by WalletHub and promoted by the Illinois Policy Institute, found that Illinoisans pay 10.22% of their annual income on taxes — including property taxes, income taxes, sales taxes, and excise taxes.
“Sadly, this isn’t an April Fools’ joke,” the Illinois Policy Institute stated. “Illinoisans need to wake up and stop being fools.”
Source: Illinois Policy Institute
How Illinois Compares Nationally
The tax burden metric reflects the proportion of total personal income paid toward state and local taxes. According to the WalletHub breakdown:
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Illinois: 10.22% of annual income
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National Rank: #7 overall
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New York: Highest at 13.56%
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California: 8.62%
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Florida: 6.49%
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Texas: 7.77%
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Wyoming: Lowest at 5.79%
The Midwest stands out with higher-than-average rates:
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Minnesota – 9.72%
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Iowa – 9.33%
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Wisconsin – 8.25%
What’s Driving Illinois’ High Burden?
The ranking follows a string of recent developments that have deepened taxpayer frustration in Illinois:
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A $394 million increase in state taxes in 2025 targeting Airbnb, DraftKings, nicotine products, and corporate revenue streams
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Elimination of a $43 million property tax relief grant, which effectively increased homeowner tax bills
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A new gas tax hike effective July 1, pushing per-gallon prices even higher
These changes were passed as part of the $55.2 billion FY2025 Illinois state budget.
2025 Tax Burden by State (Selected)
| State | Tax Burden % |
|---|---|
| New York | 13.56% |
| Connecticut | 13.46% |
| California | 8.62% |
| Florida | 6.49% |
| Illinois | 10.22% |
| Texas | 7.77% |
| Wyoming | 5.79% |
Do you think Illinois’ growing tax burden is justified by public services — or is it pushing residents and businesses away?
Sound off in the comments at ChicagoSuburbanFamily.com.
