Illinois gasoline taxes 2nd highest in nation

Illinoisans pay the second-highest gas taxes in the nation at more than $0.84 per gallon. Only California charges its drivers more.

Illinois drivers shoulder the second-highest gas taxes in the country, with California in the top spot.

Illinoisans are paying more than 84 cents per gallon in total taxes while neighboring states average just 52 cents, according to the U.S. Energy Information Association.

Other big Midwestern states don’t have the same issue. Drivers in Michigan pay 18 cents less and Ohio 27 cents less per gallon than motorists in Illinois. Missouri drivers pay 39 cents less.

The state’s unusual practice of applying sales taxes to gasoline after the motor fuel tax is charged effectively creates a tax-on-tax situation for drivers. This has led some residents, particularly those near state borders, to seek out-of-state alternatives for fueling their vehicles.

Gov. J.B. Pritzker doubled the per-gallon state tax in 2019 from 19 to 38 cents, which has now climbed to 47 cents thanks to automatic annual increases also imposed when the tax doubled. Those automatic tax hikes let state lawmakers skirt responsibility for voting on the yearly increases.

This pushes Illinois gas prices to some of the highest in the nation. Chicago and Cook County aren’t the only ones with expensive gas. Counties in central and southern parts of Illinois have just as expensive fuel as Cook County, some even higher, according to data from AAA.

That causes the average Illinois motorist to pay $323 in state gas taxes each year. Gas taxes are one of the most regressive forms of taxation, meaning they hit lower-income families the hardest.

Gas prices fluctuate, but the gas tax only goes up in Illinois.