State Representative Regan Deering of Decatur has informed constituents about new and increased taxes set to take effect on July 1, 2025. These changes are part of Illinois’ fiscal year 2026 budget, which was signed into law last week by Governor Pritzker. The budget includes $1 billion in tax hikes and was supported solely by Democrats.
Among the existing taxes that will see an increase are those on tobacco and nicotine products, as well as the telecommunications tax. Nicotine and tobacco products, including e-cigarettes and smoking cessation patches, will be taxed at a rate of 45%. The cell phone tax is set to rise from 7% to 8.65%.
“This is what failed leadership looks like, and you are paying the price,” Deering stated. “Illinoisans are already cash-strapped and unable to keep up. Rather than cutting government waste, Democrats in Springfield raised your taxes to continue their reckless abuse of tax dollars – including money for pork projects in their districts, free handouts for illegal immigrants, and, to top it all off, a nice pay raise for themselves.”
Additionally, Illinois Democrats have introduced a new per-wager tax on online sports betting and mandated short-term rentals to collect the Hotel Operators’ Occupation Tax. For online sports betting, there will be an additional charge ranging from 25 to 50 cents per wager based on the volume of bets placed. Short-term rentals booked through platforms like Airbnb and Vrbo will now incur the same tax rate as hotels—6% of 94% of gross receipts.
“I am appalled by my colleagues’ and Governor Pritzker’s actions to pass and sign a budget that is banking on one-time revenue streams, new taxes, and tax hikes while leaving out any measures to help reduce the economic burden for working families,” Deering added. “We need to do better, and we can. This is unethical governance, and it needs to be stopped.”
Representative Deering opposed every proposed tax increase during this spring’s General Assembly session.
For further details or inquiries, Rep. Deering can be contacted at (217) 876-1968 or via her website at RepDeering.com.
