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