2020 Taxes Show Illinois is the 4th highest Taxed State in the US
Turbo Tax has just released their tax data from 2020, and it paints the picture of just how expensive it is to live in the Land of Lincoln.
We all make the jokes about living in Illinois, and especially living in the rural areas of the state compared to Chicago, Illinois has high taxes. But sometimes you see the numbers and it can shock you just how much more the people of Illinois pay in taxes compared to other states.
Turbo Tax has released their data findings from the 2020 tax cycle (to see all the data click here!) so here is what they found. When it comes to income tax I was shocked to see Illinois NOT in the top 10 in the USA, the highest state income tax is California with 13.3% and actually even Iowa made the top 10 in 9th place with 8.53%. BUT that all chances when at the bottom of their charts Turbo Tax takes the combined tax rate of your states income tax along with the sales tax in your state, and in this category Illinois shoots to right near the top of the list. According to their data the states with the highest combined income and sales tax are 1. New York at 12.7% 2. Connecticut at 12.6% 3. New Jersey at 12.2% and then tied for 4th place with 11% is Illinois with California and Wisconsin. Turbo Tax says the average combined sales and income tax for Americans is 9.9%.
So there you have it, Illinois has some of the highest sales tax rates in the US, combined with the above average income tax rates, making it the 4th highest taxed state in the country to live in, and we here in Illinois don't get the benefit of the gorgeous southern California weather....