Illinois, already ranked as having the highest wireless taxes in the nation, has increased the cost of staying connected even further. As of July 1st, the state’s local wireless tax rose from 7% to 8.65%, pushing the total tax rate on monthly cell phone bills to 37.7%. This includes 24.9% in state and local taxes, fees, and surcharges, combined with 12.8% in federal Universal Service Fund taxes.
For a family of four on a shared $100 monthly plan, the increase means paying nearly $38 each month in taxes, totaling $456 annually—well above the national average of $320.
Chicago residents are hit even harder, facing additional per-line local taxes of $5 per month, significantly adding to household wireless expenses. Per-line taxes are considered especially regressive, as they impact lower-income families and users more heavily than percentage-based taxes.
While part of the tax hike supports the state’s 9-8-8 Suicide and Crisis Lifeline, critics argue that higher wireless taxes hurt the very communities most dependent on mobile phones. A Tax Foundation report notes that 80% of low-income adults rely on wireless-only service, highlighting the disproportionate impact of these rising fees.
Beyond household budgets, experts warn that steep wireless taxes discourage investment in wireless infrastructure, which could hamper innovation and economic growth in the long term.
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