Illinoisans pay nation's highest wireless cell phone service tax

Illinoisans paid the highest state and local taxes for wireless cell phone service in the nation in 2023, spending more monthly than the combined rates of the two lowest states—Idaho and Nevada. Illinois wireless plan holders paid 23% in state and local taxes, fees and government surcharges on their monthly wireless bills in 2023. Residents in each state also paid 10.8% in federal taxes to the Universal Service Fund for cell phone service in 2023. That gave Illinois a grand total of 33.8% in government taxes on the cell bills compared to the 24.5% U.S. average. It also added $34 to the average $100 monthly bill for a family of four’s shared plan. Chicagoans paid even more for cell phone service—the highest per-line tax among cities studied. Illinois allows local taxes of $5 per-line on Chicago service plan holders in addition to the percent-based rate. Cell phone taxes are considered regressive, meaning they impact low-income users more because they take a larger share of their incomes.