Illinois Cell Phone Taxes 5th Highest in Nation

In Illinois over 20%, on average, of your phone bill is federal, state, and local taxes.

In a just released Tax Foundation policy paper “States Target Cell Phones for Stealth, Burdensome Taxes” the State of Illinois came in 5th for highest combined combined cell phone taxes. On average, 20.9% of an Illinois cell phone user’s bill goes to paying various taxes & fees. The state and local portion of cell phone taxes in Illinois is 15.85%.

How does this affect Illinois Residents?

Diana Rickert, our Manager of Media Relations and her husband Chuck have the same AT&T cell phone plan (basic 700 minutes). Chuck’s phone number comes with an area code registered in his native Wisconsin, while Diana’s is registered in Illinois.

Chuck pays a 75 cents “WI Police and Fire Protection Fee” every month.

Diana pays 73 cents for a “IL 911 surcharge” AND a $9.57 ” State/Municipal Telecommunications Tax”, every month.

Diana pays $9.55 cents more per month, and $114.50 more per year, in taxes.

The Tax Foundation’s report reflects thise disparity in cell phone tax rates between the two states. Compared to Illinois, Wisconsin’s 13.39% rate is lower.

The lowest cell combined cell phone rate in the U.S. is Oregon at 6.86%. Illinois subscribers cell phone taxes are more than triple what they are in Oregon.

Here are the rates from around the Midwest.

Combined Federal, State, and Local Cell Phone Tax Rates