The tax placed on gasoline in Illinois is set to increase on July 1, spiking up to nearly 50 cents a gallon as prices continue to increase in light of the war in Iran.
According to the Illinois Department of Revenue, the gas tax will increase to 49.6 cents per gallon on July 1, an increase of 2.68% over the prior year. The increase is required due to Illinois’ Motor Fuel Tax Law, which states that the tax increases each year based on the increase in the inflation rate for the past year, ending in March. That came out to 2.68% for 2026.
The tax on diesel will also increase as well, going to 57.1 cents per gallon from 55.8 cents per gallon in 2025.
The jump in the gas tax comes as gas prices have increased due to the war in Iran. According to AAA, the price of regular unleaded gasoline in the Peoria area is $4.94 a gallon, up $1.61 from where it had been at this time last year.
Republicans in the Illinois General Assembly, led by Peoria-area Rep. Ryan Spain, have introduced a bill that would hold the gas tax at its current rate for the next six months. The bill, HB 5738, which was brought forth in April, remains stuck in the Rules Committee in the Illinois House.
Illinois’ gas tax is among the highest in the United States, alongside California – with a 62-cent per gallon tax – and Washington state, with a 55-cent per gallon tax.
This article originally appeared on Journal Star: Illinois gas tax to increase July 1, among highest in US
Reporting by Zach Roth, Peoria Journal Star / Journal Star
USA TODAY Network via Reuters Connect
