Illinois 'millionaires tax' proposal seeks to fund education, provide tax relief with 3% surcharge

April 23, 2026 - 05:59

A new legislative proposal in Springfield seeks to impose a 3% surcharge on incomes over $1 million, directing the estimated $1 billion in annual revenue toward education and property tax relief. The measure, championed by its sponsor as a way to address systemic funding gaps, is currently in a critical phase as its backers work to secure the necessary votes for passage.

Advocates argue the "millionaires tax" is a matter of fairness, stating that the state's wealthiest residents can afford to contribute more to strengthen public schools and community colleges across Illinois. A significant portion of the generated funds would be earmarked specifically for increasing the state's share of education costs, a move intended to alleviate the heavy reliance on local property taxes.

Concurrently, the plan promises direct financial relief for homeowners and renters through property tax credits. Proponents contend this dual approach not only invests in the state's future but also provides immediate assistance to middle- and lower-income families burdened by high property taxes. The proposal is expected to face vigorous debate in the legislature, with its fate hinging on complex budgetary negotiations and political consensus in the coming weeks.