Illinois
Our ranking: Least tax-friendly
State income tax: Flat 4.95%
Average state and local sales taxes: 8.70% (groceries are taxed)
Gas taxes and fees: 38 cents per gallon (varies by county)
Illinois has been struggling with budget deficits for a while, and in July 2017 raised its flat tax on income from 3.75% to 4.95%. And the bad news doesn’t stop there. Property taxes in Illinois are the second-highest in the nation and state and local sales taxes are steep in the Prairie State. In some areas, the combined rate can be as high as 10% — among the highest sales tax rates in the U.S. Even prescription drugs are taxed, albeit only at 1%.
Smokers also note: Cook County adds an extra $3.00 to the state’s $1.98 cigarette tax, and Chicago (which is in Cook County) another $1.18 to that. The result: A pack purchased in Chicago has the highest total tax in the country at $6.16.
