Illinois’ gas tax is about to rise starting this week, which will mean drivers will pay more at the pump.
The increase comes as a number of tax hikes and new laws begin across the state starting July 1.
The changes were part of Illinois’ new budget, which takes effect at the start of Fiscal Year 2026, which falls on Tuesday. The new laws and changes coming include an increase in Illinois gas tax, higher minimum wage for Chicago, changes to taxes for Airbnb’s and more.
So how much will you see gas bills rise?
The state of Illinois uses the Consumer Price Index, a federally calculated measure of how inflation is impacting prices in the U.S. economy, to help determine how much its share of the state’s fuel taxes rises each July 1.
This year, the tax is set to go up by approximately 2.69%, which will increase the tax rate by 1.3 cents per gallon. That will raise the state’s gasoline tax to $0.483 per gallon, according to the state’s FY 2026 budget.
The tax on diesel fuel will also increase to $0.558 per gallon, state officials say.
Those tax rates do not include other levies, including sales taxes, excise taxes, federal fuel taxes and additional fees wholesalers put on fuel. When those are figured in, Illinois has one of the highest fuel tax rates in the nation, according to research by the Tax Foundation.
Indiana also ranks in the top five, according to the group.
According to the Illinois Road and Transportation Builders Association, fuel taxes go toward maintaining and building infrastructure in the state of Illinois
Under provisions of the Illinois Transportation Taxes and Fees Lockbox Amendment, lawmakers are prohibited from using those transportation funds for anything other than their intended use, according to Ballotpedia.
Other changes happening Tuesday include a new minimum wage in Chicago, new protocols for plastic bottles in hotels, and taxes on things like Airbnb, sports betting and tobacco.
Full list here.
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