Illinois has the highest cell phone taxes and fees in the U.S., according to a study just released by the nonpartisan Washington, D.C.-based Tax Foundation.
The foundation notes that in Chicago, a typical household with four wireless phones paying $100 per month for taxable wireless service can expect to pay about $487 per year in wireless taxes, fees, and surcharges.
Illinois’ 2018 combined federal/state/local cell phone tax and fee rates are 27.55%, highest in the country. New York was 5th highest with a combined rate of 25.20%, and California was 18th highest with a combined rate of 19.87%.
“These obscene cell phone taxes and fees are regressive, and the people that are hurt the most are the poor and minority users,” said Jim Tobin, president of Taxpayer Education Foundation.
“While competition has gradually driven down basic cell phone rates, greedy politicians have foisted these high taxes and fees on top of the basic rates, hoping consumers won’t notice. But, as cell phone users examine their monthly bills, they will notice, and at some point these state and federal politicians will pay the price.”
