Illinois has been ranked as the state with the highest tax burden in the country, according to a WalletHub report released on Mar. 10. The report found that Illinois’ overall state and local tax rates are 53% higher than the national average, placing additional financial pressure on residents.
This ranking comes as families across Illinois continue to face rising costs of living and economic challenges. According to WalletHub, Illinois residents pay a larger share of their income in taxes than those in most other states.
A recent Moody’s Analytics forecast also projects that “Illinois’ economy will underperform the Midwest and the U.S. in the coming year.” The report highlights several ongoing issues: “Below-average population trends and deep-rooted fiscal problems such as mounting pension obligations and a shrinking tax base represent the biggest hurdles to stronger economic performance.” Moody’s further notes that “persistent out-migration will weigh on the strength of employment and income gains” and that “the state’s performance has been weaker than that of the region and the nation.”
Governor Pritzker addressed these concerns during his budget address last month, saying, “Everything is too damned expensive.” However, he attributed much of Illinois’ economic difficulties to federal policies rather than state-level decisions.
Norine K. Hammond, who was elected as a Republican representative for Illinois’ 94th House District in 2023 after replacing Randy Frese, said she is working to address these issues by supporting legislation aimed at improving affordability for working families. Hammond cited bills such as HB 4202, which seeks to reform Illinois’ estate tax and protect family farms, and HB 4877—referred to as “No Tax on Tips and Overtime Pay”—as examples of efforts intended to provide relief.
The reports from Moody’s Analytics and WalletHub underscore ongoing concerns about high taxes, slow economic growth, and continued outmigration from Illinois.
