Illinois House Republicans announced on April 10 that Rep. Ryan Spain filed HB 5738, a bill proposing a six-month suspension of the sales tax on gasoline from July 1, 2026, to December 31, 2026. The legislation aims to provide relief to drivers and businesses facing high fuel costs.
The proposed measure would temporarily set the sales tax rate on motor fuel and gasohol at 1.25 percent during the second half of 2026. According to the Illinois House Republicans in a post on X, this action addresses affordability concerns for residents and producers and is part of Republican efforts to ease the tax burden on working families.
Illinois currently imposes one of the highest combined gas tax burdens in the nation. Reports indicate that average gas prices in Illinois exceeded $4.25 per gallon in early April 2026, with both a motor fuel tax and standard sales tax applied at the pump. These costs impact families and businesses throughout communities across the state, according to The Center Square.
Several states have implemented temporary gas tax holidays as a way to offer short-term relief when fuel prices rise. The federal government and multiple states monitor motor fuel taxes due to their effect on consumer costs and economic activity. Illinois drivers currently pay both a sales tax component and a per-gallon motor fuel tax; under HB 5738, suspending the sales tax would reduce pump prices by about 20 cents per gallon, according to RepRyanSpain.com.
The Illinois House Republican Caucus represents Republican members of the Illinois House of Representatives and advances policies focused on economic growth and fiscal responsibility. The caucus regularly sponsors measures intended to reduce taxes and support working families statewide, with HB 5738 continuing this pattern by addressing affordability challenges, according to information from ILGA.gov.
