Kendall County Times

Illinois state Rep. Martin McLaughlin (R-Barrington Hills) took to social media to call attention to a recent WalletHub survey.

The study revealed that Illinois was ranked last in the nation for taxpayer friendliness.

"According to a new study from the personal-finance website WalletHub," McLaughlin said in a March 20 Facebook post. "Illinois’ combined state and local tax rate of nearly 15.1% is the highest among all 50 states and the District of Columbia."

The Tax Foundation, which monitors Illinois tax rates, collections and burdens, stated that Illinois' tax system ranked 36th overall in their 2023 State Business Tax Climate Index.

Illinois has a 4.95% individual income tax rate and a 9.50% corporate income tax rate, the Tax Foundation report said. The state also has a 6.25% state sales tax rate and a 4.75% max local sales tax rate. The average total state and local sales tax rate is 8.82%. The state and local individual tax collections per capita amount to $1,726, and the state and local tax burden is 11.1%.

McLaughlin noted that there is an urgency for tax relief in Illinois.

"The dubious distinction comes at a time when Illinois is forecast to bring in billions in revenue above projected estimates and underscores the urgent need for permanent tax relief," he said in the post.

The average U.S. household pays almost $11,000 in federal income taxes each year. But taxpayers in states with the highest tax rates pay twice as much as those in the cheapest states.

WalletHub ranked Illinois, Connecticut, New York, Pennsylvania and Kanas as the five states with the highest tax rates nationwide. The states with the lowest tax rates were Alaska, Delaware, Montana, Nevada and Wyoming.

"In Illinois, state and local tax payments by households making the median U.S. income amounted to $10,463, the highest amount in the nation," McLaughlin said. "When adjusted for cost of living, Illinois still ranks 47th on the list."