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East Central Reporter

Friday, April 26, 2024

Analysis: Income tax hike will cost Richland County residents $3.5M more this year

Three houses on elliott street

Elliot street in Olney, a city where residents are expected to pay an additional $2,595,066 in income taxes this year. | Wikimedia Commons

Elliot street in Olney, a city where residents are expected to pay an additional $2,595,066 in income taxes this year. | Wikimedia Commons

Richland County residents will pay an additional $3,506,902 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 Richland County communities will pay the most: Olney ($2,595,066 total/$477 per person), Noble ($428,039/$508), Claremont ($182,371/$540) and Dundas ($136,979/$498). 

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
1Olney62450$2,595,066
2Noble62868$428,039
3Claremont62421$182,371
4Dundas62425$136,979
5Parkersburg62452$88,909
6Calhoun62419$75,538

Total

$3,506,902
Sources: Illinois Department of Revenue; Blockshopper.com

 

Top income tax-paying communities in Richland County

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

RankingCommunityZipAverage State Income Tax IncreaseTotal Returns filed by Zip
1Claremont62421$540338
2Noble62868$508843
3Dundas62425$498275
4Olney62450$4775,438
5Parkersburg62452$475187
6Calhoun62419$437173
Sources: Illinois Department of Revenue; Blockshopper.com; Illinois Senate Democrats

*Assumes tax increase will meet Senate Democrats' projections.

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