How Do Tax Rates in Illinois Compare to Other States? Spoiler Alert – It’s NOT Good
This time of the year should be something to get excited about - the weather is slowly getting a little warmer and the days are getting a little longer. Spring is almost here. Despite those positives, this time of year also brings one big negative that stresses out a lot of Americans - TAX TIME.
I'll admit that (as of this writing) I have not done my taxes yet - I put it off until the last minute every year. It's a pain in the butt and I just don't like messing with it. I guess I should be glad that I don't live in Illinois because, according to this report, taxpayers there have a lot more to stress about than here in Indiana.
The personal finance website WalletHub.com release a report that identifies the states with the lowest and highest tax rates. They compared the 50 states and the District of Columbia across four types of taxation:
- Real-Estate Tax
- Vehicle Property Tax
- Income Tax
- Sales & Excise Tax
I said in the title of this article that it's not good for Illinois, but that is a bit of an understatement. If fact, it can't get any worse for Illinois. The Land of Lincoln ranks 51st (dead last) on the list, meaning they have the highest tax rates in America.
According to this study, Illinois has a total state and local tax rate of 15.05% which equates to a total of $10,463 in taxes owed each year. Compare those figures to the #1 state on this list - Alaska. The total state and local tax rate in Alaska is 6.05% which means Alaskans pay, on average, $4,204 in taxes every year.
Indiana and Kentucky scored a little better, but still nothing to write home about. Indiana landed at #35 on the list with a rate of 11.76% and $8,173 in taxes. Kentucky is down at #40 with a tax rate of 12.50% and $8,687 in taxes.
See the rest of the study results HERE, and scroll over the map below to see how the rest of the country ranked.