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Sunday, December 22, 2024

Analysis: Income tax hike will cost Marion County residents $8.5M more this year

Centralia

Downtown Centralia, a city in which residents are projected to experience a $3,692,021 tax increase this year. | Jon Platek via Wikimedia Commons

Downtown Centralia, a city in which residents are projected to experience a $3,692,021 tax increase this year. | Jon Platek via Wikimedia Commons

Marion County residents will pay an additional $8,512,003 in state income taxes this year, according to an analysis by Local Government Information Services (LGIS).

LGIS combined Illinois Department of Revenue data with a forecast by Senate Democrats to estimate how much additional income tax will be paid in each Illinois zip code.

The following Marion County communities will pay the most: Centralia ($3,692,021 total/$429 per person), Salem ($2,467,190/$490), Iuka ($415,707/$452) and Odin ($380,177/$423). 

Retroactive to July 1, the higher rate -- now 4.95 percent, up from 3.75 percent -- will be withheld from employee paychecks over the last six months of 2017.

Before the hike, someone earning $50,000 paid $72 in state income tax per paycheck when paid twice a month. That person will now pay $95, or an additional $600 per year.

Senate Democrats estimate the tax hike will siphon $4.453 billion more this year from individual taxpayers. Businesses will pay another $1 billion.

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How much more will your community pay?

State income taxes have increased to 4.95 percent from 3.75 percent. This chart shows how much more taxpayers in your community will pay for state government.

RankingCommunityZipEstimated State Income Tax Increase
1Centralia62801$3,692,021
2Salem62881$2,467,190
3Iuka62849$415,707
4Odin62870$380,177
5Sandoval62882$357,411
6Kinmundy62854$292,773
7Patoka62875$270,941
8Walnut Hill62893$219,754
9Kell62853$196,468
10Alma62807$165,035
11Vernon62892$54,528

Total

$8,512,003
Sources: Illinois Department of Revenue; Blockshopper.com

 

Top income tax-paying communities in Marion County

This chart shows the ranking of communities by highest income taxes paid in Marion County.

RankingCommunityZipAverage State Income Tax IncreaseTotal Returns filed by Zip
1Patoka62875$535506
2Walnut Hill62893$497442
3Salem62881$4905,030
4Iuka62849$452919
5Kell62853$444442
6Vernon62892$433126
7Centralia62801$4298,616
8Alma62807$425388
9Odin62870$423898
10Kinmundy62854$396739
11Sandoval62882$389919
Sources: Illinois Department of Revenue; Blockshopper.com; Illinois Senate Democrats

*Assumes tax increase will meet Senate Democrats' projections.

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