Taxes & Insurance in Edwardsville

Edwardsville's tax and insurance picture layers a real, city-specific property tax premium and an 8.85% peak combined sales tax rate onto Illinois's own already-elevated statewide tax burden and currently escalating severe-weather insurance trend.

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A property tax rate above the county and state averages

Edwardsville's city-specific effective property tax rate is 2.17% (Ownwell) -- above Madison County's own 1.92% county-wide average and above Illinois's statewide 1.88% average (illinois.js), inside a state already tied with New Jersey for the nation's highest average effective rate.

A combined sales tax reaching 8.85%

Edwardsville's combined sales tax rate ranges from 7.6% to 8.85% depending on the specific ZIP code and taxing district (6.25% Illinois state + 0.35% Madison County + 1% city + up to 1.25% special district) -- below Chicago's 10.25% peak rate documented in illinois.js, but still a real, substantial statewide-plus-local burden.

Illinois's statewide retirement-income exemption applies here too

Illinois's real, no-threshold exemption of Social Security, pension, and 401(k)/IRA income from state income tax applies fully in Edwardsville, alongside the simple flat 4.95% rate on wages -- both statewide facts documented in illinois.js, not Edwardsville-specific.

Illinois's real, current, escalating tornado/derecho insurance trend applies statewide

Edwardsville shares Illinois's real, current 2026 severe-weather profile -- a record 202+ confirmed tornadoes statewide and the August 11, 2026 derecho across northern Illinois -- and the real, sourced statewide homeowners-insurance premium increases tied to that trend (illinois.js). No Edwardsville-specific premium figure was independently verified this pass.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.