Prairie State Wire

The motor fuel tax rate in Illinois will see an increase effective July 1, 2025. This change, outlined in Section 2 of the Motor Fuel Tax Law (35 ILCS 505/2), applies to all motor fuels including diesel fuel, gasoline, gasohol, liquefied petroleum gas (commonly known as propane), compressed natural gas, and liquefied natural gas used in vehicles operating on public highways and recreational watercraft within the state.

The adjustment is part of an annual revision that occurs every July 1st. The rate is modified based on the percentage increase in the Consumer Price Index for All Urban Consumers for all items. For the period ending March each year, this index is published by the United States Department of Labor. The upcoming change reflects a 2.82% increase.

This adjustment affects various stakeholders such as motor fuel distributors, suppliers, receivers, users and sellers of alternative fuels, as well as those claiming non-highway use motor fuel tax refunds.

For further details regarding these changes effective from July 1, 2025, through June 30, 2026, refer to FY 2025-23 documentation.