Illinois’ Highest-In-The-Nation Cellphone Taxes Just Went Up

If there's anything that Illinois state government excels in, it's raising taxes. Well, we also excel in making current Illinois residents into former Illinois residents, as we continue to lead the Midwest in "outbound migration," also known as "residents leaving the state."

What's the number-one reason former Illinois residents give when they're asked why they chose to leave the state? The one-word answer is "taxes." Coincidence? I don't think so:

• Illinois' real estate property taxes are the second-highest in the nation, behind only New Jersey.
• Illinois fuel taxes are the second-highest in the nation, behind only California.
• Among the 44 states that levy a corporate income tax, Illinois is the second-highest in the US, trailing only Minnesota.
• Illinois has the third-highest liquor taxes in the US.
• Illinois has the highest cellphone service taxes in the country, and now, with a new increase in those taxes, we've really solidly locked in the number-one spot.

Illinois Cellphone Taxes Are At Least Four Percent Higher Than Any Other State

Illinois already had the highest cellphone service taxes before they just increased on the 1st of July this year.

When you compare Illinois' highest-in-the-nation cellphone taxes with Idaho's lowest-in-the-nation cellphone taxes, you'll see that Illinois families are paying 22 percent more in cellphone taxes than Idaho families do. Our cellphone taxes are 4 percent higher than tied-for-second-place states Arkansas and Washington.

IllinoisPolicy.org:

Residents have been paying 37.7% in taxes on their monthly wireless bill. This includes 24.9% in state and local taxes, fees, and surcharges as well as the 12.8% in federal taxes for the Universal Service Fund.

For a family of four sharing a $100 plan, that adds close to $38 each month. Illinois families pay $456 a year in cell taxes while the U.S. average is $320. Chicagoans will pay even more because Illinois allows local per-line taxes of $5 a line in the city.

Here's How Illinois' Cellphone Taxes Compare To Our Midwestern Neighbors

Wisconsin's combined cellphone tax rate sits at 21 percent (17 percent less than Illinois').

In Iowa, the rate is 23 percent

In Indiana and Kentucky, the rate is 24 percent

Missouri residents are paying 28 percent.

IllinoisPolicy.org:

Cell phone taxes are regressive, meaning they impact low-income users more because they take a larger share of their incomes. Increasing per-line impositions for 9-1-1 fees, per-line general wireless taxes and 9-8-8 fees worsen this already regressive tax.

Wireless services are becoming the only method of communication for Americans, especially those struggling with poverty. According to the Tax Foundation, 80% of all low-income adults had wireless-only service.