Every state has tax laws in place. However, Illinois is
known for having some particularly high tax rates, which can be a bummer if you
live there. Whether you like it or not, however, you have no control over the
tax laws.
What you can do, though, is to increase your knowledge about
tax laws. That way, while you might not like the laws, you’ll at least be aware
of them so they won’t come as an ugly surprise, and there definitely are some
that you might not have known about.
Sales Tax
Most people do know that sales tax exists, though few are
clear on exactly how much it is or what it applies to.
In Illinois, the sales tax rate is 6.25%. This doesn’t
include any sales taxes that localities add, which can further increase taxes
owed and varies from place to place. For that reason, educate yourself on the
different tax rates in different areas of Illinois. That way, you can plan your
shopping in a smart way.
Also, bear in mind that some items receive a lower tax rate
of 1%. This typically includes items you need, such as prescription drugs, over
the counter medicines, most food items, and medical equipment or supplies.
Soft Drink Tax
If you venture to the big city of Chicago, you’ll quickly
learn that there’s a soft drink tax in effect. Retailers have to pay a 3% tax
on their soft drink sales. And, if there’s a soda fountain in place, a 9% tax
is applied.
So, what counts as a “soft drink?” The rule is any drink
that is less than 50% juice falls into this category.
Gas Tax
Finally, take note of when and where you fill up your car.
Illinois boasts a 29 cents per gallon tax rate for unleaded
gasoline. Diesel, on the other hand, has a 41.7 cents per gallon tax rate-
still pretty steep!
Some counties, including Cook County and Chicago, charge up
to six cents more than others, which can really add up over time. Thus, fuel
with care and planning!
Taxes are no fun, but they are a part of life. Just educate
yourself on what they apply to and where. Then, plan accordingly to avoid as
much taxation as you possibly can…though, unfortunately, you’ll never escape it
all.