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Illinoisans Face Two Gas Tax Increases

Not one, but two Illinois motor fuel gas tax increases in 2023. The state of Illinois, working in cooperation with its local governments, charges one of the highest motor fuel tax packages in the U.S.

A key feature is an automatic step-up, or escalator, imposed on the Illinois motor fuel tax schedule that all gas stations must charge and collect. Under this step-up the tax rate goes up every year; this increase is supposed to generate money to keep up with inflation and the rising costs associated with building and rebuilding Illinois roads and bridges.

Under the law, this step-up kicks in on July 1 of each year, and the July 1, 2023 tax hike will take place on schedule.

Recognizing the soaring price of motor fuel and the need to provide a small relief to Illinois drivers, the General Assembly took action in the spring of 2022 to postpone the July 1, 2022, step-up for six months. This slight postponement was enacted and implemented, and “stickers” have been placed on many Illinois gas pumps to celebrate the brief tax relief. The cost of this step-up has been finalized at 3.1 cents per gallon of non-diesel motor fuel, and the postponed price hike will show up at the Illinois gas pump on January 1, 2023. There will thus be two motor fuel gas tax hikes in calendar year 2023. The first tax hike will come on January 1, and the second on July 1.


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