Illinois motor fuel tax to rise July 1

June 14, 2025 200

SPRINGFIELD — In just over two weeks, Illinois motorists may notice yet another increase in prices at the pump.

The state’s annual adjustment to the motor fuel tax will go into effect on July 1.

The enacted increases for Fiscal Year 2026, which is part of a broader infrastructure funding strategy, will impact both gasoline and diesel fuel, as well as alternative fuels such as liquefied petroleum gas, liquefied natural gas, and compressed natural gas.

The state gas tax will be increasing by 3.3 cents from 45 cents per gallon to 48.3 cents per gallon. The compressed natural gas rate will also be 48.3 cents per gallon.

Diesel fuel will also see an increase of 1 cent from 54.8 cents per gallon to 55.8 cents per gallon. The rates for liquefied petroleum gas and liquefied natural gas will also be at 55.8 cents per gallon.

Combined with the U.S. federal excise tax on gasoline, the state increase will make total taxes paid to all governmental entities at 66.7 cents per gallon for gasoline and 80.2 cents per gallon for diesel fuel.

Illinois’ motor fuel tax was last overhauled in 2019, when lawmakers doubled the tax and added provisions for annual inflationary adjustments. The revenue supports critical infrastructure projects, including road and bridge repairs across the state.

Currently, the federal government has no known excise taxes on liquefied petroleum gas, liquefied natural gas, and compressed natural gas.

The state also collects a prepaid sales tax on motor fuel, which is adjusted monthly and can be checked on the Department of Revenue’s website.

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