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Thursday, April 18, 2024

North Shore taxpayers would pay an extra $270M if Democrats’ tax hike becomes law

Cullerton

State Sen. John Cullerton (D-Chicago) is eager to raise state income taxes. Taxpayers in his north side district will pay the most. | City Club of Chicago

State Sen. John Cullerton (D-Chicago) is eager to raise state income taxes. Taxpayers in his north side district will pay the most. | City Club of Chicago

North Shore taxpayers would see a total of $270 million in state income tax increases if a tax hike measure passed by the Democrat-controlled Illinois State Senate becomes law.

The North Shore communities that would see the largest collective increases include Winnetka/Northfield ($65 million), Northbrook ($41.2 million), Wilmette ($34 million), South Glenview ($31.4 million) and Glencoe ($29.1 million).

Taxpayers from Kenilworth ($9,936), Glencoe ($7,578), Winnetka/Northfield ($6,954), Wilmette ($2,682) and North Glenview ($2,105) would see the highest average increases.

Led by Senate President John Cullerton (D-Chicago), Democrats passed the individual income tax hike last week-- from 3.75 percent to 4.95 percent-- along with a broader set of tax increases on businesses.

If their projections prove correct, individual Illinois taxpayers will send an additional $4.453 billion to Springfield each year as a result of the higher rates. Businesses will pay another $1 billon.

LGIS looked at 2014 income taxes paid by zip code to create a ranking of the highest-paying North Shore communities.

Its analysis looked at the percentage of total state income taxes paid by zip code, as reported by the Illinois Department of Revenue. It then applied that percentage to the amount Senate Democrats expect their tax hike will raise to calculate an average increase.

The analysis used 2014 tax return data, which is the latest available and also represents a year in which state income taxes were higher-- five percent, or approximately the level to which the Democrats are hoping to raise them.

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Top income tax-paying communities on Chicago's North Shore

Which communities pay the highest income taxes on the North Shore?

RankingCommunitiesZipAverage State Income Tax IncreaseTotal Returns filed by Zip
1Kenilworth60043$9,9361,191
2Glencoe60022$7,5783,837
3Winnetka / Northfield60093$6,9549,347
4Wilmette60091$2,68212,667
5Glenview (North)60026$2,1056,400
6Northbrook60062$2,02820,318
7Evanston (Northeast)60201$1,64217,026
8Glenview (South)60025$1,61219,473
9Evanston (Southeast)/Skokie (East)60202$1,07315,329

Source: Illinois Department of Revenue; Blockshopper.com

How much more will your community pay?

If state income taxes are increased to 4.95 percent from 3.75 percent, how much more will taxpayers in your community pay for state government?

RankingCommunitiesZipEstimated State Income Tax Increase
1Winnetka / Northfield60093$64,999,991
2Northbrook60062$41,214,952
3Wilmette60091$33,968,377
4Glenview (South)60025$31,396,002
5Glencoe60022$29,075,590
6Evanston (Northeast)60201$27,950,672
7Evanston (Southeast) / Skokie (East)60202$16,442,943
8Glenview (North)60026$13,473,831
9Kenilworth60043$11,833,256

TOTAL

$270,355,614

Sources: Illinois Department of Revenue; Blockshopper.com; Illinois Senate Democrats

*Assumes tax increase will meet Senate Democrats' projections.

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