Amy Korte | Executive Vice President | Illinois Policy Institute website
Amy Korte | Executive Vice President | Illinois Policy Institute website
Illinois gas tax rises to 47 cents a gallon July 1
June 24, 2024
CHICAGO – Illinois’ second-highest in the nation gas taxes will increase again on July 1 as the state motor fuel tax reaches 47 cents per gallon. This change means the average driver in Illinois will pay $184 more annually in state gas taxes than before Governor J.B. Pritzker doubled the tax in 2019, according to the Illinois Policy Institute.
Gas tax hikes disproportionately affect middle- and lower-income families as they allocate a larger share of their household budgets for gasoline. Overall, Illinois has the seventh-most expensive retail gas price in the nation, with all state, local, and federal taxes and fees contributing to about 40% of the total cost at the pump.
“Illinoisans were already overburdened with heavy gas taxes before this latest hike and now it will be more costly for tens of millions of Illinoisans expected to take to the roads this summer,” said Bryce Hill, director of fiscal and economic research at the nonpartisan Illinois Policy Institute. “These tax increases continue to damage our quality of life and make Illinois an expensive place to live.”
In total, lawmakers will impose $1.1 billion in tax hikes on Illinois residents in the coming year to support a record $53.1 billion state budget. Other tax hikes effective July 1 include $200 million on sports wagering, $35 million on video gaming taxes, and $60 million for bookings at select hotels.
To read more about Illinois' gas tax increases, visit illin.is/July2024.
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