Illinois drivers will pay less at the pump starting in July, Gov. JB Pritzker’s office said, as the state plans to temporarily pause its Illinois gas tax.
The pause comes as part of the $55.9 billion, FY2027 Illinois budget, passed in the early morning hours Monday by the Illinois General Assembly. Also included in the budget was a return of Illinois’ popular “back-to-school sales tax holiday,” which will eliminate sales tax on back-to-school supplies and clothing for 10 days in August.
“Every element of the budget for the upcoming fiscal year was thoroughly deliberated with the aim of achieving widespread affordability for all Illinoisans,” Pritzker said in a release. “I look forward to signing the FY27 budget and delivering for Illinois’ working families in all stages of life.”
Each year, the gas tax increases on July 1 to provide funding for transportation and infrastructure projects around the state. July 1, 2026, the tax was set to increase by 1.3 cents, but that increase will be paused for six months, according to a release.
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The release cited “higher costs driven by economic uncertainty and rising prices.”
“No state can stop costly tariff schemes, reopen the global supply chain, or bring down the price of oil, but we can take charge of what we can control to provide people with some relief right now,” Illinois House Speaker Emanuel “Chris” Welch said in the release.
According to the state, the gas tax will be paused for six months, starting July 1. It is set to resume in December.
Pritzker hinted at the possibility of suspending the state’s gas tax earlier this month, amid rising fuel costs due a mix of more expensive summer fuel and the ongoing war in Iran.
“As you know, we now are one of the best states in the country for infrastructure. But that’s because we’re making the investments that come from the motor fuel, tax that gets imposed,” he said. “ I think we can we have enough here so that we could make some sort of pause. But I think that’s something the legislature is going to consider over the coming week. We’ll see.”
In April, Indiana Gov. Mike Braun suspended both its fuel tax and its sales tax on gasoline purchases, a move he said has saved residents nearly $0.60 per gallon in fuel taxes.
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