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Tuesday, November 5, 2024

Analysis: Income tax hike will cost Gallatin County residents 1.3M more this year

Shawneetown district high scho

Shawneetown high school, a city in which residents are projected to pay an additional $335,317 in income taxes this year. | Nyttend via Wikimedia Commons

Shawneetown high school, a city in which residents are projected to pay an additional $335,317 in income taxes this year. | Nyttend via Wikimedia Commons

Gallatin County residents will pay an additional $1,278,089 in state income taxes this year, according to an analysis by Local Government Information Services (LGIS).

LGIS combined Illinois Department of Revenue data with a forecast by Senate Democrats to estimate how much additional income tax will be paid in each Illinois zip code.

The following Gallatin County communities will pay the most: Ridgway ($339,551 total/$672 per person), Shawneetown ($335,317/$523), Omaha ($217,021/$822) and Equality ($198,848/$514). 

Retroactive to July 1, the higher rate -- now 4.95 percent, up from 3.75 percent -- will be withheld from employee paychecks over the last six months of 2017.

Before the hike, someone earning $50,000 paid $72 in state income tax per paycheck when paid twice a month. That person will now pay $95, or an additional $600 per year.

Senate Democrats estimate the tax hike will siphon $4.453 billion more this year from individual taxpayers. Businesses will pay another $1 billion.

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How much more will your community pay?

State income taxes have increased to 4.95 percent from 3.75 percent. This chart shows how much more taxpayers in your community will pay for state government.

RankingCommunityZipEstimated State Income Tax Increase
1Ridgway62979$339,551
2Shawneetown62984$335,317
3Omaha62871$217,021
4Equality62934$198,848
5Junction62954$107,291
6New Haven62867$80,061

Total

$1,278,089
Sources: Illinois Department of Revenue; Blockshopper.com

 

Top income tax-paying communities in Gallatin County

This chart shows the ranking of communities by highest income taxes paid in Gallatin County.

RankingCommunityZipAverage State Income Tax IncreaseTotal Returns filed by Zip
1Omaha62871$822264
2Ridgway62979$672505
3Junction62954$547196
4Shawneetown62984$523641
5Equality62934$514387
6New Haven62867$430186
Sources: Illinois Department of Revenue; Blockshopper.com; Illinois Senate Democrats

*Assumes tax increase will meet Senate Democrats' projections.

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