Illinois gas taxes rising in July, but state leaders still want more

Illinois motorists should expect another motor fuel tax increase this summer when the gas tax jumps again. Illinoisans already pay the second-highest gas taxes in the country, but state leaders are worried about not having enough to spend.

Illinois drivers beware: The motor fuel tax is going up once July 1 hits, this time to more than 48 cents per gallon.

That means Illinoisans will likely stay at No. 2 in the country for highest gas taxes.

It might not stop there as state lawmakers are floating a vehicle mileage tax because they claim they’re not getting enough money for roads.

Because Gov. J.B. Pritzker doubled the state gas tax in 2019 and built in automatic annual increases, drivers on average will be paying an extra $143 annually after the July 1 boost. The state excise tax on gas was 19 cents before then.

Illinoisans in counties such as Cook, Kane, Lake, DuPage, McHenry, Will and others have local gas taxes rise, too. When you add up all the layers, Illinoisans pay more than 85 cents per gallon in taxes alone on gas. Illinois and California are the only states taxing above 80 cents per gallon.

Automatic gas tax hikes mean lawmakers never again must face voters after voting for the unpopular increases. Plus, Illinois is one of the few states that calculates its sales tax after other taxes and fees are applied – essentially taxing the taxes. On top of other driving costs such as tolls and licensing fees, the state has collected more than $6 billion from drivers.

And they’re getting it from fewer drivers: the number of registered passenger vehicles in Illinois went down by more than 580,000 from 2018 to 2024. So, the state is getting an extra $2 billion from fewer people and is still plotting to get more.

If they want more gas tax revenue, a good first step would be trying to attract more people to the state or to tax competitively so drivers don’t buy in a neighboring state where gas is 60 cents a gallon cheaper. Raising costs makes residents look to other states.

These regressive taxes disproportionately hurt middle and low-income families, especially those with older, less fuel-efficient vehicles. Lawmakers should look at how to better spend money they’re already getting before demanding more.