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Illinois gas tax rises for third straight year. And here's why it will continue to happen

Illinois gas tax rises for third straight year. And here's why it will continue to happen

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People filling up their tanks will have to pay a little more at the pump, beginning in July 2021 as the Illinois gas tax rises again.

Illinois' state gas tax rises a half cent Thursday, increasing from 38.7 cents per gallon to 39.2 cents per gallon. The tax on diesel fuel will rise to 46.7 cents per gallon.

This will be the third time since 2019 the gas tax has risen in Illinois and it is all tied to the $45 billion, multiyear state capital infrastructure bill Gov. JB Pritzker signed that summer.

Illinois saw its gas tax double in 2019, from 19 cents per gallon to 38 cents per gallon, a measure designed to help fund transportation projects such as road and bridge repair and public transit to the tune of $33 billion.

The tax increased to 38.7 cents per gallon in 2020.

Annual increases in the gas tax, determined by the consumer price index, will continue indefinitely. However, increases are capped at 1%.

Illinois' taxes on gas rank among the highest in the United States.

According to the American Petroleum Institute, Illinois has the third highest tax hit at the pump in the country, behind only California and Pennsylvania.

Using API's data, Illinois will average 71.06 cents per gallon in gas taxes.

California also had a rise in its motor fuel tax this summer. Its rate rose 0.6 cents per gallon on June 14, bringing the state's total gas tax to 51.1 cents per gallon.

According to data from AAA, on July 1, Illinois had the 10th highest overall gas prices in the nation and the highest in the Midwest, with the next-highest states nearby being Michigan and Indiana.

The state average is just below $3.37 a gallon in Illinois, and is just over $3.12 nationally.


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