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Friday, November 22, 2024

Analysis: Income tax hike will cost Hamilton County residents $1.8M more this year

Mcleansboro

Washington Street in McLeansboro, a city in which residents are projected to pay a $1,184,881 tax increase this year. | Nyttend via Wikimedia Commons

Washington Street in McLeansboro, a city in which residents are projected to pay a $1,184,881 tax increase this year. | Nyttend via Wikimedia Commons

Hamilton County residents will pay an additional $1,815,622 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 Hamilton County communities will pay the most: McLeansboro ($1,184,881 total/$495 per person), Dahlgren ($388,557/$612), Macedonia ($130,850/$521) and Broughton ($111,335/$499). 

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
1McLeansboro62859$1,184,881
2Dahlgren62828$388,557
3Macedonia62860$130,850
4Broughton62817$111,335

Total

$1,815,622
Sources: Illinois Department of Revenue; Blockshopper.com

 

Top income tax-paying communities in Hamilton County

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

RankingCommunityZipAverage State Income Tax IncreaseTotal Returns filed by Zip
1Dahlgren62828$612635
2Macedonia62860$521251
3Broughton62817$499223
4McLeansboro62859$4952,395
Sources: Illinois Department of Revenue; Blockshopper.com; Illinois Senate Democrats

*Assumes tax increase will meet Senate Democrats' projections.

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