April 15, 2025

New analysis from the Illinois Policy Institute found the average Illinois state income tax return is over $4K – up nearly $1.6K from 2017

PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Micky Horstman (312) 607-4977

Tax Day: Where do Illinois tax dollars go?
New analysis from the Illinois Policy Institute found the average Illinois state income tax return is over $4K – up nearly $1.6K from 2017

CHICAGO (April 15, 2025) – While Illinoisans will finalize their federal and state income tax filing today, the sting of their taxes is a year-round pain.

The average Illinois taxpayer shelled out about $4,030 in personal income taxes for 2024, according to new analysis from the Illinois Policy Institute. The amount per return has grown by $1,589 from 2017 to 2024, following the 2017 income tax hike.

The amount per return has grown by $1,589 from 2017 to 2024.

When including other state and local taxes, including property taxes and sales taxes, the total reaches $13,099 per household paid in taxes a year, or about 16.5% of a family’s income.

Tax revenue is distributed through the state general funds budget to support various government expenses, from pensions to public safety.

“Illinoisans’ high taxes aren’t equal to the services they receive. Hard-earned tax dollars are getting eaten up by spending on debt and government pensions. That prevents spending on other services people expect and need,” said Lauren Zuar, policy researcher at the Illinois Policy Institute. “Lawmakers must do whatever possible to prevent future tax hikes in the next budget, which threatens to again spend more than the state will take in.”

Here’s where Illinoisans’ income taxes go:

  • Pensions and government services: $1,115 per person, or 28%, goes to state employee pensions, government services and health care. Even with that much devoted to those costs, Illinois needs another $144 billion to cover all its pension commitments.
  • Education: Over $1,000 per return covers state funding for education – both public K-12 schools and universities. Only one-third of Illinois students read at grade level.
  • Human services: $855 per return is spent on programs to support behavioral health, early childhood services, and family and community services.
  • Health care: $665 per return helps fund health care coverage for Medicaid recipients and other state health programs.
  • Public safety: $187 goes to state public safety expenses.
  • Economic growth: Just $28 per return supports economic development expenses to bring jobs and businesses to Illinois.
  • Other: $10 goes to the environment, culture and other costs.

“Without serious reform, Illinois taxpayers are at risk of future hikes and that’s not something they can afford,” Zuar said. 

To read more about Illinois’ heavy tax burden, visit illin.is/taxday2025.

For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.