Illinois revenue $717M more than expected, but politicians still raise taxes
Despite record revenues, Gov. J.B. Pritzker’s 2026 budget hikes taxes by another $482 million. Illinoisans are paying 44% more than six years ago and getting higher tax burdens as thanks.
Illinois is taking $1,237 more in taxes from each resident than before Gov. J.B. Pritzker took office, yet the tax hikes keep coming.
Illinois collected nearly $54 billion in total revenues for the general fund in 2025, $717 million more than lawmakers budgeted, according to the latest report from the Illinois General Assembly’s Commission on Government Forecasting and Accountability. The bulk of that extra cash came from personal income taxes, which generated a $1.67 billion surplus compared to initial projections.
The windfall came less from economic growth and more from record-high taxes. Illinois brought in $2.5 billion more in tax revenue than a year before, continuing a trend of ever-increasing burdens on taxpayers. During the past 15 years, there have been at least 70 tax hikes, with 49 coming from just the Pritzker administration since 2019. As a result, Illinois’ net tax collections have increased by $18 billion in that time.
Between fiscal years 2019 – Pritzker’s first year in office – and fiscal year 2024, the state increased per-resident collections by 44%, a jump from $2,790 to $4,030 per person. This was double the pace of inflation during the time. Illinois residents now have one of the highest tax burdens in the nation.
Yet despite record-high revenues, Pritzker’s 2026 budget raised taxes another $482 million on residents and businesses. It also used $544 million in other budget delays and tricks to fund a $2-billion spending increase.
Illinois’ high tax burden has undermined the state’s competitiveness, discouraging job growth and driving investment elsewhere. Since 2020, Illinois has lost at least 10 major headquarters for large companies such as Caterpillar, Boeing, Tyson, TTX and Citadel. This has contributed to Illinois’ gross domestic product only growing 5.7% since 2019, much slower than the 15.2% national growth.
The state’s high taxes have also fueled population loss. Illinois has lost 420,678 residents through moves out of state since 2020, according to census estimates. In a recent poll, high taxes were the No. 1 issue impacting the state, with 54% of voters ranking it as the top issue.
Illinois must break its addiction to tax hikes. It needs to link its spending to growth in the state’s economy, control government health care costs, cut administrative bloat and overhaul the state’s broken pension system through constitutional reform.
Continuing to ignore or deny there is a problem will only allow it to grow.