Illinois is gearing up for another summer tradition with a forthcoming increase in the state’s gas tax alongside a range of other tax adjustments. Overall, Illinoisans can expect $1.1 billion in tax hikes in the coming year, supporting a record-breaking $53.1 billion state budget.
Gasoline taxes will rise to 47 cents-per-gallon, while diesel will see an increase to 54 cents-per-gallon. This means Illinois drivers will face an average annual increase of $184 compared to 2019, all part of the Rebuild Illinois capital plan. Initially doubled in 2019 from 19 to 38 cents-per-gallon, the gas tax now includes annual inflation adjustments.
Dylan Sharkey from the Illinois Policy Institute noted, “When you add federal, state, and local gas taxes together, Illinois ranks second only to California and is significantly higher than any other Midwest state.”
Meanwhile, Missouri will also increase its motor fuel tax to 27 cents-per-gallon starting July 1, as announced by the Missouri Department of Revenue.
Additionally, starting July 1, electric vehicle owners in Illinois will face a new $100 annual fee to offset lost tax revenue, in addition to existing registration fees. Taxes on video games will rise by 1 percentage point to 35%, and sports wagering taxes for operators will shift from a flat 15% rate to a progressive rate up to 35%.
Sharkey emphasized Illinois’ high rankings in multiple tax categories, stating, “Illinois not only ranks second highest in the nation for gas taxes but also for corporate income taxes and property taxes. This consistent ranking across various categories highlights significant financial burdens on residents.”