Illinois’ combined state and average local retail sales tax rate topped 8.8% in 2022. That’s the 8th-highest in the nation and the highest in the Midwest.
Illinois leads the nation in local government bloat, with over 6,000 taxing bodies. The Citizen’s Empowerment Act, sponsored by Illinois House Rep. Jonathan Carroll, would make it easier for Illinois taxpayers to dissolve unnecessary layers of government.
The Windy City tied with four other major cities as imposing the nation’s second highest sales tax on residents among 124 considered. The report warns the city’s new status could be costing Chicago businesses their competitive edge.
State revenue losses around the country have ranged from far less than expected to non-existent. Fiscally healthy states are giving back to taxpayers. That doesn’t include Illinois.
With an abundance of freight lines and roadways, along with a reliable power grid, Illinois placed No. 1 in the U.S. for infrastructure. But state finances are a threat, and political pork needs to give way to projects that move the most people and goods.
Illinoisans pay one of the highest sales tax rates in the nation when local and state sales taxes are averaged. The average rate of 8.83% was up slightly from a year earlier.
For nearly 80 years, Illinoisans have voted against the state fireworks ban by crossing state lines each July to buy fireworks, despite threatened penalties. The state is now one of four nationwide to prohibit celebrating Independence Day with fireworks.