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How much will Illinois’ gas tax increase on July 1?

By Alex Ortiz
Published  May 12, 2026 3:32pm CDT
Gas Prices
FOX 32 Chicago

The Brief

    • Illinois' state tax on motor fuel is set to increase again on July 1, as prices around the nation have soared due to the war in Iran.
    • Leaders have been under pressure to suspend taxes on gas to relieve pain at the pump.
    • Gov. JB Pritzker has not appeared warm to the idea of suspending the state's gas tax, which has more than doubled since 2019.

CHICAGO - The war between Iran and the U.S. has caused gas prices to spike around the nation and prompted calls for state and federal leaders to suspend taxes on fuel to help ease the pain for drivers and companies.

By the numbers:

As of mid-May, the average gallon of regular gas in Illinois was $4.97, which is $1.56 more than it was a year ago, according to AAA. 

In the City of Chicago, the average price stood at $5.36, while it was $3.77 a year before.

President Trump said this week he wants to suspend the federal tax on gasoline, which is 18.4 cents per gallon of regular gas. But that move would require approval from Congress.

There have been similar calls for Gov. JB Pritzker to suspend the state’s motor fuel tax, although the governor has not appeared warm to that suggestion.

In fact, when the state’s new fiscal year begins on July 1, the state’s gas tax is actually set to increase slightly from 48.3 cents to 49.6 cents.

The tax is different for different forms of motor fuel. For example, the tax on diesel fuel will increase on July 1 to 57.1 cents per gallon from 55.8 cents per gallon.

Back in 2022, Illinois delayed the increase of its gas tax by six months amid rising inflation.

Critics of Pritzker and the Democratic-led legislature argue the state’s gas tax has more than doubled under their tenure.

The backstory:

Back in 2019, the General Assembly voted to double the state’s motor fuel tax from 19 cents per gallon to 38 cents, and allow for it to increase every year tied to any rise in the Consumer Price Index.

The stated purpose of the increase at the time was to provide new funding for a significant multi-billion-dollar infrastructure improvement program across the state. The state aimed to spend more than $25 billion to improve roads and bridges over six years.

Illinois’ gas tax is higher than the average state’s. In 2024, when Illinois’ tax on regular gas was 47 cents per gallon, the average state tax was only 32.6 cents per gallon, according to the U.S. Energy Information Administration.

Indiana's governor, Mike Braun, announced the suspension of his state's 7% gas tax through at least this month.

The Source

  • The information in this story was provided by the Illinois Department of Revenue, AAA, and the U.S. Energy Information Administration.

Gas PricesMoneyIllinoisEconomy