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Jan 25, 2024

Illinois residents can expect to pay more for gas and groceries next month

by: John Clark

Posted: Jun 5, 2023 / 09:26 AM CDT

Updated: Jun 5, 2023 / 10:15 AM CDT

SPRINGFIELD, Ill. (WTVO) — Taxes on gas and groceries in Illinois are set to increase beginning July 1st.

Last year, Gov. JB Pritzker signed a temporary initiative, the Family Relief Plan, designed to ease the effects of inflation on residents by suspending the 1% sales tax on groceries and freezing the motor vehicle tax at 39.2 cents per gallon.

On July 1st, 2023, those freezes will come to an end.

Illinois drivers this summer will be paying 6.2 cents a gallon more in state gas taxes than they did during Christmas, according to the Illinois Policy Institute, for a total tax of 45.4 cents, up from 42.3 cents on Jan. 1 and 39.2 cents a year ago, according to The Center Square,

Governor J.B. Pritzker signed into law a $45 billion infrastructure plan in 2019. That plan doubled the state's gasoline tax from 19 cents to 38 cents per gallon, and included automatic inflation adjustments every July 1, meaning state lawmakers no longer need to vote on unpopular gas tax rate changes.

That's on top of the state sales tax on gas, at 6.25%.

After the July 1 increase, Illinois will have the second-highest motor fuel excise tax in the nation, with Illinois residents paying 78 cents per gallon in taxes.

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the Illinois Policy Institute The Center Square signed into law second-highest
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