Illinois named the least ‘tax friendly’ state in the country

WGN ^ | 03/20/2024 | Alix Martichoux, Nick Jachim

[ChicagoConservative27]

(NEXSTAR) – Tax season isn’t really fun for anyone, but some states’ residents have it harder than others this time of year.

As families around the country collect their paperwork and get ready to file, people in Illinois may find themselves with a heftier tax bill than their neighbors in other states.

An updated analysis by MoneyGeek, a personal finance site, evaluates how “tax friendly” each state is by calculating the tax burden on the average citizen. States with low tax burdens earned an A, while those with the highest tax burden earned Fs.

The state that scored worst overall was Illinois, where taxes represent about 13% of a median family’s income. The state was given an F grade for its tax burden.

Thirteen states in total earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame. In Illinois, high property taxes and the effective tax rate played a major factor in their grade.

[ChicagoConservative27]

I am surprised WGN is reporting this

[ridesthemiles]

CALIF & NY have to be on their heels.

[desertsolitaire]

Some states allow sales tax upon food items as well as non-food stuff. Ouch.

[jaydubya2]

Surprised by WGN also!
One thing Illinios does have is they don’t tax pension income, but I still would not retire there.

[napscoordinator]

Florida taxes some food. We survive. Florida is great on state income taxes and property taxes. Horrible on homeowners insurance, auto insurance and toll roads. Otherwise, it’s relatively affordable.

[budj]

"...they don’t tax pension income..." Indeed, IL doesn't tax any Social Security or RMD income. Two years ago they tried to change the state constitution to allow different tax rates on marginal income.

It didn't pass, mostly because we believed that they would use it to start adding income taxes to retirement income. Believe it or not, some of us don't trust the politicians.

[jdt1138]

Maybe the MSM could do a story about all the taxes that have been rescinded?

[VanShuyten]

Iowa is ranked high, but this 2022 article from the DesMoines Register explains the large tax cuts Gov. Kim Reynolds has gotten passed, but have just started.

Gannett restricts us to title and url only.

“ Here’s when Iowans can expect to see tax cuts kick in from the new law Kim Reynolds signed”

https://www.desmoinesregister.com/story/news/politics/2022/03/03/income-flat-tax-bill-cut-rate-iowa-kim-reynolds/9342261002/

[VanShuyten]

The gist is that Iowa is moving, over several years, to implement a flat tax of 3.9% and have zero tax on all retirement income from SS, IRAs, and 401Ks, and a handful of other sources.

[Grampa Dave]

“One thing, Illinois, does not have is they don’t tax pension income, but I still would not retire there.”

My wife has a few relatives still living in Illinois.

The retired ones will probably bail if their pensions are taxed.

[bert]

I learned recently that the arxist Republic of Maryland has a death tax on assets.

Maryland and Marylanders are American enemies

[ProtectOurFreedom]

"According to the updated MoneyGeek analysis, the most “tax friendly” state overall was Nevada, where the median family owes about 3% of its income in taxes."

Could that be true? Does that much money from gambling flow to the NV treasury that their take is only 3%? That would explain this ad I stumbled upon the other day for the "Tahoe Beach Club" where they discuss one of their "amenities":

I'm disappointed that Idaho is only in the middle of the pack. I'm also shocked California isn't bright red and near the top of the list.

[bigbob]

Prickster

[for-q-clinton]

oh “lEast” Not “last”. Phew.

[for-q-clinton]

But if you’re a disabled/retired veteran how does this map change? I think Florida would still be in the A group. I think Virginia may move up to top tier.

[wetgundog]

Duh!

[strange1]

...and in other news: the sun will set tonight and rise tomorrow.... stay tuned...

[SunkenCiv]

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