Prairie State Wire

Illinois will see an increase in motor fuel taxes starting July 1. The tax on gasoline will rise from $0.470 to $0.483 per gallon, while diesel will increase from $0.545 to $0.558 per gallon. Additionally, the tax on liquefied petroleum gas (LPG) and liquefied natural gas (LNG) will also go up to $0.558 per gallon.

According to Illinois law, these adjustments occur annually on July 1, based on the consumer price index's rise. Since January 2019, gasoline taxes have increased by 154% from an initial rate of $0.19 per gallon, and diesel taxes have risen by 159% from $0.215 per gallon.

Beyond the motor fuel tax, consumers in Illinois are subject to a sales tax on motor fuels that considers both the fuel price and the motor fuel tax itself. This means that consumers will experience a slightly higher overall tax increase than just the $0.013 rise in motor fuel tax.

Furthermore, Illinois imposes a $0.008 per gallon environmental impact fee and a $0.003 per gallon underground storage tank tax.

In 2024, the Tax Foundation reported that Illinois had the second-highest total gasoline tax in the nation at $0.665 per gallon.