Illinois’ Gas Tax Hike Is Going To Affect 4th Of July Travelers

According to AAA-Chicago, 4.2 million Illinois residents will be traveling for the 4th of July/Independence Day holiday weekend (3.86 million by automobile), and over 72 million Americans overall plan on traveling at least 50 miles from home starting later this week.

Anyone who tries to keep an eye on their finances will be looking for the best deals and prices when they need to fill up over this 3 or 4 day holiday weekend (depending on how much time you could get off from work), but the state of Illinois is just about to hike gas taxes again (July 1st), and you're going to notice it.

Thanks to Governor Pritzker, Illinois' motor fuel tax has gone from 19 cents per gallon the year before he was elected to 47 cents per gallon right now. On July 1st, it goes to 48.3 cents per gallon. Yearly increases have been built in so lawmakers wouldn't look bad raising them year after year, giving them the excuse that the increase is already on the books.

If You're Near The Border With One Of Illinois' Neighboring States, You'll Notice The Stark Difference Between Their Gas Prices And Ours

According to the experts at IllinoisPolicy.org, "buying gas in Wisconsin or Iowa would save about 50 cents a gallon. Missouri gas was 64 cents cheaper and Indiana 22 cents cheaper heading into the holiday travel period."

Here are the notable changes you'll see when you fill up in Illinois starting on July 1st and moving forward:

Illinois' Gas Tax Increase: On July 1st Illinois' gas tax will rise from 47 cents per gallon to 48.3 cents per gallon. We're second in the nation when it comes to fuel taxes, right behind California.

Illinois' Diesel Fuel Increase: Tax on diesel fuel in Illinois will go up to 55 cents per gallon from our current 54 cents per gallon.

The other two taxes that are going to rise are:

Sports Betting Tax: A tax of 25 cents per wager will be levied on the first 20 million wagers with licensed sportsbooks, and increase to 50 cents per wager after the first 20 million.

Local Sales Tax Increases: Nearly 50 municipalities in Illinois are about to see their local sales tax increase. Those increases range from 0.25% to 2%.

You're Paying Over $140 More Per Year In Fuel Taxes Than You Did In 2019, And That Number Will Continue To Rise

If that number gets your attention, consider this from IllinoisPolicy.org:

It gets worse: Pritzker’s tax hike is atop existing federal and state gas taxes. Before this July’s tax hike, Illinoisans paid just about 85 cents per gallon in total federal and state taxes and fees. Now with this increase, the tax burden per gallon will be about 86 cents.

Illinois also double taxes drivers, charging taxes on taxes. Illinois is one of three states that applies the state’s general sales tax on top of the price of gasoline, after federal taxes have been added.