Do you ever get things delivered from retailers like Amazon, Walmart, Target, or even your favorite small business? Whether it’s school supplies, household essentials, groceries, or pizza, delivery has become a go-to convenience for many Illinois families.
However, Springfield Democrats floated an idea this past legislative session to add a $1.50 delivery tax to nearly every package shipped to Illinois homes. Luckily, delivery taxes did not receive a vote in the House, but the new tax could still be adopted in veto or special sessions later this year.
Democrats haven’t been shy about raising taxes, pushing forward nearly $1 billion dollars in new taxes and fund sweeps to pay for increased spending in the Illinois’ FY2026 budget. As part of the newly-signed $55 billion state budget—the largest in Illinois history—Democrats once again chose to tax more, even as working families already face the near-highest tax burden in the country.
Among the new taxes taking effect:
Sports Betting Tax Increase: A per-wager tax of $0.25 for the first 20 million bets, doubling to $0.50 after that. DraftKings and FanDuel have already responded by raising costs for users.
Hotel Tax on Short-Term Rentals: Services like Airbnb and Vrbo are now subject to Illinois’ Hotel Operators’ Occupation Tax, meaning families trying to travel in-state will pay more out-of-pocket.
Tobacco Tax Hike: The wholesale tax on tobacco products jumps from 36% to 45%, another hit to consumers.
These taxes are just the latest example of how the Democrat-led Illinois government keeps spending more and taxing more while ignoring the real struggles of working families. Instead of collaborating with Republicans on ideas for tax relief, like protecting family farms or no taxes on tips and overtime pay, Democrat leaders once again chose to take more.
House Republicans remain steadfast in their efforts to stop wasteful spending, defend families, oppose new taxes, and introduce pro-growth policies. State Representative Mike Coffey says the spending and taxing must stop or we will see more families and flee Illinois:
“The quality of life has been downgraded for Illinois families because of high taxes that continue to increase due to bad public policies,” said Coffey. “Families deserve relief but instead they have been given more tax increases, new taxes for this year, and higher energy rates. Democrat lawmakers have abandoned Illinois citizens when they need help the most.”