Skip to content

Illinois Gas & Diesel Taxes Increase on July 1

Illinois Gas & Diesel Taxes Increase on July 1

June 26, 2025

Motor fuel tax on gasoline and diesel will increase in Illinois on July 1

Illinois’s motor fuel tax on gasoline and diesel will increase by $0.013 on July 1.

The motor fuel tax on gasoline will rise to $0.483/gallon from $0.470/gallon. On diesel, it will increase from $0.545/gallon to $0.558/gallon.

The tax on liquefied petroleum gas (LPG) and liquefied natural gas (LNG) will also increase to $0.558/gallon.

Per Illinois law, motor fuel taxes are adjusted annually on July 1 by the increase in the consumer price index.

Since January 2019, the motor fuel tax on gasoline has risen 154% from $0.19/gallon. Over the same time period, the motor fuel tax on diesel has increased 159% from $0.215/gallon.

In addition to the motor fuel tax, Illinois consumers also pay a sales tax on motor fuels. Since this tax is assessed on both the price of the fuel and the motor fuel tax, consumers will see a slightly higher tax increase than the $0.013 motor fuel tax increase.

Illinois also assesses a $0.008/gallon environmental impact fee and a $0.003/gallon underground storage tank tax.

In 2024, the Tax Foundation calculated that the total tax on gasoline paid by Illinois consumers was $0.665/gallon, the second highest in the nation.

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

United States Capitol East Facade at angle
June 28, 2025
NFIB Key Votes the One Big Beautiful Bill Act in U.S. Senate
NFIB sent a letter to the U.S. Senate naming the One Big Beautiful Bill Act…
Read More
Michigan State Capitol Building
June 27, 2025
NFIB Statement on Petitions Before the Board of Canvassers
Michigan small businesses express concerns with proposals
Read More
Florida State Capitol photo by Todd Pack
June 27, 2025
Small Business Community Encourage Governor DeSantis to Sign HB…
Small businesses urge Gov. DeSantis to make HB 7031 law and eliminate the b…
Read More
June 26, 2025
NFIB Expert Explores Taxes as Growing Concern for Small Busines…
Peter Hansen, NFIB Director of Research and Policy Analysis, published an o…
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility