Taxes

Illinois set to tax social media companies

The governor signed a budget bill that makes it the first state to charge companies a fee based on their number of users.
Illinois Gov. JB Pritzker speaks during a taping of FOX News Channel’s Special Report with Bret Baier at the Washington bureau of FOX News, Thursday, Oct. 23, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)

Gov. JB Pritzker signed a budget bill Tuesday that makes Illinois the first state to charge social media companies a fee based on their number of users.

The state will now tax the companies in two ways: by charging them monthly based on in-state users and taxing income they earn from digital advertising. 

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