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NewsNBC Chicago – LocalJuly 1, 2026United States

Illinois Gas Tax Increase Paused for Six Months

A scheduled 1.3-cent increase to the Illinois gas tax has been paused for six months as part of the state's $55.9 billion FY2027 budget. The increase, originally set for July 1, 2026, is now delayed due to economic concerns and rising fuel costs.

gas taxIllinois budgettransportationinfrastructurefuel prices
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Why It Matters

Drivers in Illinois will not see the planned 1.3-cent per gallon gas tax increase on July 1, 2026, as the state has delayed the hike for six months to address economic uncertainty.

Key Facts

  • A scheduled 1.3-cent increase to the Illinois gas tax is paused for six months.
  • The gas tax increase was originally planned to take effect on July 1, 2026.
  • The tax increase is now scheduled to resume in July 2027.
  • The pause is part of the $55.9 billion FY2027 Illinois budget passed on June 1.
  • The pause is intended to address higher costs driven by economic uncertainty and rising prices.
  • Illinois gas taxes are typically increased annually on July 1 to fund transportation and infrastructure projects.

Who's Mentioned

personMike Braun“Governor of Indiana who suspended fuel and sales taxes on gasoline.”personJ.B. Pritzker“Governor of Illinois who commented on the budget and tax pause.”locationIllinois“State where the gas tax policy change is occurring.”