The flat income tax gets the attention, but it is the smallest part of the story for most households. Illinois and Chicago have built one of the most layered tax systems in the country: a fee on paint since December 2025, a bag tax that doubled in 2026, a tax on software subscriptions that rose to 15%, the second-highest gas tax in America, a tollway that just approved its first rate hike in fifteen years, and property taxes that fund pensions rather than services. Below is the list. Nevada's column is short.
Illinois
State income tax
On nearly all non-retirement income. Nevada: 0%.
4.95% flat
Local governments
Property tax
Second-highest effective rate in the U.S. Nevada: ≈0.55%, capped at 3% growth for owner-occupants.
≈2% of home value per year
State + Cook County + city + RTA
Sales tax
Up from 10.25% on Aug 1 2026 when the RTA transit tax rose a quarter point across six counties. Downtown restaurants 11.5%. Clark County, NV: 8.375%.
10.5% Chicago
650+ municipalities
Grocery tax
The state repealed it January 1 2026; most towns re-imposed it the same day. Nevada: none.
1%
Illinois
Motor fuel tax
Plus 6¢ Cook County and 8¢ Chicago. Second-highest state gas tax in the nation; indexed to inflation each July (paused for the second half of 2026).
48.3¢/gal + 1.1¢ fees
Illinois Tollway
Tolls
First increase in ~15 years; average I-PASS rate rises from 7¢ to ≈11¢ a mile, then CPI-indexed every other year from 2029. Nevada: no toll roads.
75¢ → $1.20 per typical toll (Jan 2027)
Every paint sale (since Dec 1 2025)
PaintCare fee
About 95¢ on a standard gallon, $1.95 on a five-gallon bucket. Nevada: none.
45¢–$1.95 per container
Chicago
Checkout bag tax
Doubled from 7¢ in the 2026 budget. Nevada: none.
15¢ per bag
Chicago (Personal Property Lease Transaction Tax)
Cloud / software tax
On software licences, cloud services and streaming infrastructure; raised from 11% in 2026. Nevada: none.
15%
Chicago
Amusement tax
On streaming subscriptions, online games, concerts and sporting events; raised from 9% in 2025, and a first-in-the-nation social-media tax was added for 2026. Nevada: live entertainment tax only on ticketed venues.
10.25%
Chicago (2025–26)
Rideshare congestion surcharge
On any pickup or drop-off in the downtown congestion zone, which was expanded in 2026, on top of existing ground-transportation taxes.
$1.50 per ride · $2.75 weekends
Chicago (2026)
Liquor tax
New city tax on off-premises alcohol sales, on top of state and county liquor taxes.
1.5%
Illinois (since Jan 2026)
Utility energy-assistance charge
Up from 16¢ on every residential electric and gas bill; businesses pay ten times more.
80¢ per account per month
Illinois (since 2020)
EV registration surcharge
On top of the $151 plate fee, so $251 to register an electric car. A $320 surcharge is proposed for 2027.
$100 per year
Skyway concession (2026)
Chicago Skyway toll
Up 30¢ this year, separate from the Tollway. Nevada: no toll roads or bridges.
$8.10 per trip
Chicago
Bottled water tax
Yes, really.
5¢ per bottle
Chicago
Parking tax
Raised in 2025 from 22% weekday / 20% weekend. On garage and lot parking. Most Las Vegas neighborhoods have free parking; even Strip garages are cheaper.
23.25% every day
Illinois Secretary of State
Vehicle registration
Standard passenger plates. Chicago residents add a city sticker of roughly $100 a year.
$151 per year
Buyer 0.75%, seller 0.45%
Real estate transfer tax
Many suburbs levy their own stamps on top. Clark County, NV: ≈0.51% total.
1.05% Chicago + 0.15% state/county
Illinois
Estate tax
Exemption is not indexed and not portable between spouses. Nevada: no estate or inheritance tax.
8–16% above $4M
Illinois
Corporate income + replacement tax
Plus a franchise tax on paid-in capital. Nevada: no corporate income tax; Commerce Tax only above $4M Nevada revenue.
9.5% combined
What it adds up to
Take a two-car household in the western suburbs with a $150,000 income and a $500,000 home. Income tax: about $7,100. Property tax: about $10,000. Tolls for one I-88 or I-355 commuter: $1,000–$2,000, rising 60% in January 2027. Gas tax premium over Nevada on 20,000 miles a year: roughly $250–$300. Two sets of plates: $302, plus city stickers if you live in Chicago. That is $18,000–$20,000 before a single grocery, bag, streaming subscription or can of paint. In Henderson the same household pays about $2,750 in property tax, no income tax, no tolls and no city sticker.
Why the list keeps growing
Illinois' five state pension systems are about $144 billion underfunded and Chicago's add roughly $53 billion more. Every budget cycle the gap is closed at the margin with a new fee or a higher rate rather than a structural fix, which is why the 2026 Chicago budget alone raised the bag tax, the cloud tax, liquor taxes and rideshare surcharges and created the country's first social-media tax. Nevada's constitution prohibits a personal income tax without a vote of the people, and its property-tax cap is written into statute.
Want the history? Every new Illinois and Chicago tax since 2021 lists them budget by budget with the revenue each one raises. See how the big lines compare on the Illinois vs. Nevada tax page, run your own numbers with the calculator there, or tell Ron your situation.
