As Illinois faces growing budget pressure, a ‘graduated income tax’ is unlikely to advance in 2026, with Governor JB Pritzker claiming the issue is not a “legislative priority” despite his continued support for the concept. Pritzker, who championed the original proposal during his first run for office, has acknowledged the growing financial challenges ahead for Illinois. However, he has stopped short of pushing to place the question back on the ballot.
Illinois has operated under a flat income tax system for decades now, charging the same rate regardless of income level. In 2020, voters rejected a constitutional amendment that would have allowed lawmakers to implement a graduated tax structure, falling well short of the necessary votes needed. Since that defeat, state officials have largely avoided reopening the debate, pointing instead to balanced budgets achieved through significant federal government funding following the COVID pandemic. That nest egg has now vanished.
Budget projections show Illinois is facing a nearly 2 billion dollar shortfall in the coming years as federal relief expires. Those pressures have renewed interest among some Democratic lawmakers in revisiting tax reform. They say this reform would stabilize revenues and shift more of the tax burden toward higher earners, while potentially providing relief for middle class households.
Several legislators have introduced resolutions in both chambers seeking to again place a graduated income tax amendment before voters. A current Senate proposal has attracted multiple co-sponsors, while a similar House resolution has drawn support from more than two dozen members. Earlier attempts in recent years failed to advance, either lacking sufficient backing or never being called for a vote before election deadlines.
Despite that renewed legislative interest, the political hurdles remain significant. Pritzker is running for reelection in 2026 and continues to be mentioned as a potential national candidate in the years ahead. Reviving a proposal voters rejected just four years ago carries large political risk.
