Budget Buster: Living in IL

[FINFAN]

I don't know how close you are to the border, but in Indiana we're at 3.4% + county tax. The state just capped property tax as well. (Not saying it is a good thing for programs in the state, but the taxes are really low here.) Our sales tax is kinda high though at 7% for the state and a little higher in some counties/areas.

not close enough to the border, lol, Im in Naperville...but our sales tax is anywhere from 7.25-10 depending on what town/city...even sie of the street you shop on, so I think 7 is average.
I've lived in IL my whole life, and have wanted to leave for years. If only I could get DH on that bandwagon!

 

[RitaE]

I'm less than a mile from the Indiana border and I'd honestly consider it if I thought we had a chance of selling our house right now. Doubtful.

 

[SaraJayne]

HA - drive a little north to WI and pay 6.5%.

I would be thrilled with that tax rate.

Exactly what I was thinking!!

We also have sales tax, use tax, and county rate taxes.

As well as high property taxes! Who wants to live here!

 

[Pastamom]

Exactly what I was thinking!!

We also have sales tax, use tax, and county rate taxes.

As well as high property taxes! Who wants to live here!

Don't forget our wonderful weather

 

[SaraJayne]

Don't forget our wonderful weather

I actually love the four seasons.

I forgot our gas tax (which is 33 cents a gallon) and our cigarette tax, which I have no idea how much that is, as we don't smoke.

 

[Purseval]

Even before they mentioned the latest round of tax increases IL was judged the worst state in America to retire. My sister lives in Lockport so it's bad news for her and her husband.

http://chicagobreakingbusiness.com/2010/12/illinois-named-worst-state-to-retire-in.html

 

[Darcy03231]

I live in NH and we don't have an income tax or a sales tax, but we do have high property taxes. We pay about $6k a year in property tax.

 

[Sagginit]

finfan i feel your pain. i took a job in NYC in the early fall, so excited that it was a promotion and a raise. with the NYC taxes prolly 1/3 of my paycheck goes to taxes. i cant wait to do my taxes and switch it from NYC to NJ where i live, im hoping for a refund. in NJ we have 7% sales tax, but it excludes most food and necessary clothing. in NY its about 8.25% but has less exclusions. i can only be thankful i dont have property taxes yet.

as jimmy would say, we got a lot to drink about!

 

[daughtersrus]

I live in NH and we don't have an income tax or a sales tax, but we do have high property taxes. We pay about $6k a year in property tax.

Most people in the Chicago suburbs would be thrilled to have a property tax bill of $6,000. In addition, we have all of the other taxes.

This is from the state website for my suburb.

Sales and related taxes
Sales Taxes (retailers' and service occupation taxes)
View General Merchandise Sales Tax Breakdown General merchandise 8.500%

Rate consists of the following:
State Rate 6.250%
Home Rule 1.500%
Regional Transportation Authority 0.750%

View Food and Drug Sales Tax Breakdown Qualifying food and drugs 1.750%

Rate consists of the following:
State Rate 1.000%
Regional Transportation Authority 0.750%

View Motor Vehicle Sales Tax Breakdown Vehicle(ST-556) 7.000%

Rate consists of the following:
State Rate 6.250%
Regional Transportation Authority 0.750%


If the vehicle or trailer is titled and registered to

* a Chicago address, a Chicago Home Rule tax of 1.250% is imposed in addition to the vehicle rate listed above, making the total tax rate 8.250%.
* an out-of-state location, you (the dealer) may be required to collect tax. Refer to "Information for Vehicle Dealers" on the Welcome Page.



Use Taxes (use and service use taxes)
General merchandise 6.250%

Rate consists of the following:
State Rate 6.250%

Qualifying food and drugs 1.000%

Rate consists of the following:
State Rate 1.000%

View Motor Vehicle Use Tax Breakdown Vehicle (RUT-25) 7.000%

Rate consists of the following:
State Rate 6.250%
Regional Transportation Authority 0.750%



Automobile renting taxes
View ART Sales Tax Breakdown Automobile renting tax (occupation) 6.000%

Rate consists of the following:
State Rate 5.000%
Local Rate 1.000%

View ART Use Tax Breakdown Automobile renting tax (use) 6.000%

Rate consists of the following:
State Rate 5.000%
Local Rate 1.000%



Telecommunication taxes
View Telecommunication Tax Breakdown Telecommunication taxes 13.000%

Rate consists of the following:
State Rate 7.000%
Local Rate 6.000%


In addition we also have tax on gas, cigarettes, liquor...

and our state is still broke and programs that service the needy are virtually non-existent.

 

[Swimalie]

If I read this right, I'm taxed at 8.8% plus I pay $3600 in property taxes per year. I have to admit, though, I love the schools here and I think the schools are worth it.

 

[SILLYANDI]

Don't move to California! The income tax rate is on a sliding scale averaging 6% (we pay 9.3%!!) and sales tax in LA County is now just under 10%.

 

[of the seas]

I hear ya, Finfan!

Quinn sure didn't waste any time to get the new taxes rolling!

Don't forget our yearly car registration went up last year, too. So we have that, high sales tax, high property tax, higher gas prices than most, when does it end!

 

[minnie1928]

I live in NH and we don't have an income tax or a sales tax, but we do have high property taxes. We pay about $6k a year in property tax.

In NJ we have income tax of 6.37%, sales tax of 7%. Oh, and don't forget our property taxes of $13,000+.

 

[Tiger926]

I don't understand these rates, as I'm Canadian, so I wonder how they stack up against us here in Ontario, the highest taxed province in the country:

Income Tax - 42%
Sales Tax - 13%
Property Tax - $5,000/year (3600 sq feet)

Tiger

 

[FINFAN]

I don't understand these rates, as I'm Canadian, so I wonder how they stack up against us here in Ontario, the highest taxed province in the country:

Income Tax - 42%
Sales Tax - 13%
Property Tax - $5,000/year (3600 sq feet)

Tiger

your income tax is almost 1/2? What is a typical salary? Just crossed Canada off the list

 

[canadianjovigirl]

Here in AB Canada our tax rates are:

Federal tax rates for 2011 are:
•15% on the first $41,544 of taxable income, +
•22% on the next $41,544 of taxable income (on the portion of taxable income between $41,544 and $83,088), +
•26% on the next $45,712 of taxable income (on the portion of taxable income between $83,088 and $128,800), +
•29% of taxable income over $128,800.

No provincial tax, but we to have a 5% GST tax across Canada............

 

[scrapquitler]

I don't understand these rates, as I'm Canadian, so I wonder how they stack up against us here in Ontario, the highest taxed province in the country:

Income Tax - 42%
Sales Tax - 13%
Property Tax - $5,000/year (3600 sq feet)

Tiger

Well the Income Tax % people are quoting are just for their city and state income taxes, they are not including the federal taxes (nor the social security, nor their medical insurance which as I understand are paid for by your income taxes).

 

[Tiger926]

your income tax is almost 1/2? What is a typical salary? Just crossed Canada off the list

I'm surprised you didn't know that Canada is one of the heaviest taxed nations in the world? We pay a ton of taxes. With my deductions, which are: income tax, medical, union dues, unemployment insurance, long term disability and pension portion, I don't see over 50% of my paycheque. I make $92,000 and hubby makes close to $70,000, so his deductions aren't quite as high. This still doesn't count, municipal/property taxes, nor 13% sales tax on items/services.

Here are some numbers for you:

You have to combine our Federal Tax + Provincial Tax:

FEDERAL

15% on the first $41,544 of taxable income, +
22% on the next $41,544 of taxable income (on the portion of taxable income between $41,544 and $83,088), +
26% on the next $45,712 of taxable income (on the portion of taxable income between $83,088 and $128,800), +
29% of taxable income over $128,800

PROVINCIAL

Ontario (my province)
5.05% on the first $37,774 of taxable income, +
9.15% on the next $37,776, +
11.16% on the amount over $75,550

Well the Income Tax % people are quoting are just for their city and state income taxes, they are not including the federal taxes (nor the social security, nor their medical insurance which as I understand are paid for by your income taxes).

Yup, I knew that, and that is why I asked how it compared to Canada, as some of our taxes are combined.

Here are a few clarifications:

Medical Insurance - We have universal health care, which does not cover many, many things: dental, chiropractic, eyes, etc., are all private insurance. Some companies cover benefit perks (auto industry), but most, like hubby and myself must be paid in some form by us. I am a teacher, and pay 20% of my benefits each month, so that's an additional $110.00/month + long term disability $120.00/month ($230.00/month). We also pay for our own life insurance, as work policies are just group policies.

Federal & Provincial - I included the chart above for my province. Hubby and I are at 42% and will soon be at 47% of our income to income tax, as raises are coming in the next few months.

Municipal (city) - This is combined, and so that is why I gave the example of my $5,000 in property taxes that I pay. It goes up each year by a few %.

Hope this helps, Tiger

 

[RachelsMommie]

I must say, after reading these posts, I LOVE living in Texas! We have a balanced budget law in Texas, which means no spending more than we take in! We have NO income tax, 8.25% sales tax, and $4200/year property tax (3000 sq ft home).

In addition, real estate is not high-priced here. I have a GORGEOUS house with every upgrade imaginable (granite counters, wood floors, etc), plus a home theater, that I only paid $225K for at the top of the market. And it was a brand-new house!

I don't understand, honestly, how people live in California...it is CRAZY how expensive everything is there! Why do people stay there? I swear, I'd move!

 

[jmpellet]

I think all sorts of things need to bee included to be able to compare states or areas equally. I'm in MA a.k.a. Taxachusetts but I'm not sure if it's held up to its bad rep. I think all these things need to be included for comparison sake.

House prices, values, AND corresponding property taxes: My almost 3,000 sf house would probably sell for 450k and my taxes are 4k.

State tax: 5.3%

Sales tax: 6.25% (none on food or clothing)

Excise tax: in my town it's $26.17 per $1,000 value. About $400 on a new $22k vehicle.

Income: State averages are all over the place!

Utilities: my electric bill averages $100/month and last month's natural gas bill was $160.

Necessities: Milk - $2.50/gallon, gas - $3.00/gallon, others?