Illinois Motor Fuel Tax Inflation Increase Suspended Through Dec. 31

Illinois’ scheduled July 1, 2026 inflation increase to the state motor fuel tax did not take effect. Public Act 104-0468, signed by Gov. JB Pritzker on June 16, 2026, suspended the annual Consumer Price Index adjustment for six months, from July 1 through Dec. 31, 2026.

The Illinois Department of Revenue had calculated a 2.68% increase for July 1. Because of the suspension, the rates in place on June 30 remain in effect through the end of the year:

• Gasoline (including gasohol): 48.3 cents per gallon

• Diesel: 55.8 cents per gallon

Retailers continue to report motor fuel sales on Form ST-1 as before. Separately, the prepaid sales tax rate on most motor fuel rose to 21 cents per gallon on July 1, 2026.

“Pausing this year’s inflation increase gives Illinois drivers and businesses some short-term relief at the pump, and we appreciate that,” said Nate Harris, CEO of the Illinois Fuel and Retail Association. “But this is a delay, not a fix. Unless lawmakers act, the increase is still coming on January 1, and Illinoisans will keep paying one of the highest gas taxes in the nation.”

What happens Jan. 1

The suspension ends Dec. 31, 2026. The Illinois Department of Revenue will publish the motor fuel tax rates that take effect Jan. 1, 2027. IFRA will share the new rates with members as soon as they are released.

For current Illinois rates and a comparison with neighboring states, see IFRA’s Motor Fuel Tax Dashboard. Official rate notices: IDOR Informational Bulletin FY 2026-23.