Illinois gas tax increased on Jan. 1, scheduled to increase a second time on July 1
Illinois drivers will see two gas tax increases in 2023.
The first increase went into effect on Jan. 1, adding 3.2 cents to the price of a gallon of gas. Until June 30, 2023, the State Motor Fuel Tax will be $0.423 per gallon of gasoline and $0.498 per gallon of diesel fuel. Illinois has the second-highest gas tax in the nation behind California.
Motorists in Illinois were scheduled to see a 2.2 cent-per-gallon tax increase on July 1, 2022, but the state deferred the increase in the gas tax as part of its budget for the 2023 fiscal year by six months (Jan. 1, 2023).
The increase was determined by using the rate of growth in the Consumer Price Index for All Urban Consumers (CPI) of the Department of Labor for the 12-month period ending on September 1.
The second increase will take place on July 1, but the amount of the increase will depend on inflation.
According to AAA, the average gas price in Champaign-Urbana is $3.030 per gallon. The average price of a gallon of gas in the state of Illinois is $3.295.
The state’s 1-percent grocery tax will return on July 1, 2023 after being deferred for a year.
