Illinois motorists should expect another motor fuel tax increase this summer when the gas tax jumps again. Illinoisans already pay the second-highest gas taxes in the country, but state leaders are worried about not having enough to spend.
Illinois’ inefficient spending on its transportation needs led the state to spend more as its roads got worse. But there is a solution if the state can minimize politics in the decision process and prioritize public need.
Kane County voters sent a strong message by voting down a sales tax increase on April 1. They joined voters in several townships who asked for pension reform to control taxes and a town that rejected a grocery tax.
Just over 5% of the average state income tax return supports economic development and public safety, while almost 28% goes to government worker pensions and benefits. Here’s a breakdown of how Illinois will spend your state income taxes.
Illinois lawmakers are looking at a bill that would cut sales taxes during back-to-school shopping. Illinois hasn’t had a sales tax holiday in years. The bill would lower the state sales tax from 6.25% to 1.25% on clothes and school supplies for six days in August 2025.
With 90% voting “no,” Bensenville voters shot down a grocery tax proposal. Illinois’ statewide grocery tax is ending at the end of 2025, but some local leaders want it to stay.
Fears have grown that more efficient cars mean less money for Illinois to fund roads. But the state already collects higher revenues than ever while burdening drivers with high taxes and fees.
Illinois will impose the nation’s seventh-highest state and local tax burden on residents in 2025. Taxpayers on average will pay over 10% of their annual income to support government, according to WalletHub.
Illinois lawmakers can’t budget responsibly if they don’t know how much they have. Governors have a history of fudging the numbers to get what they want.
Typical property tax bill increased 78% on a Cook County residence since 2007. Median property values only rose 7.3%. That leaves residents paying $2,558 more a year in property taxes while their biggest investment fails to keep up with inflation.
Voters near O’Hare International Airport will have a chance to weigh in on whether to keep or cut the 1% grocery tax. The statewide tax ends in 2026, but nearly 50 communities have already passed their own 1% grocery tax.
Each Chicago taxpayer is on the hook for $40,600 in city debt today, the second most among major U.S. cities. Add in the debt Illinois state leaders grew last year, and Chicago taxpayers owe nearly $80,000.