FY 2025-23

FY 2025-23, Change in the Motor Fuel Tax Rate, Effective July 1, 2025, through June 30, 2026

To: All Motor Fuel Distributors, Suppliers, and Receivers; Users and Sellers of Alternative Fuel; and Non-Highway Use Motor Fuel Tax Refund Claimants

Section 2 of the Motor Fuel Tax Law (35 ILCS 505/2) imposes a tax per gallon on all motor fuel (i.e., diesel fuel, gasoline, gasohol, liquefied petroleum gas (LPG, commonly known as "propane"), compressed natural gas (CNG), and liquefied natural gas (LNG)) used in motor vehicles operating on Illinois public highways and in recreational type watercraft operating on Illinois waters. The Law provides that the rate of tax will be increased annually on July 1 of each year by an amount equal to the percentage increase, if any, in the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor for the 12 months ending in March of each year, rounded to the nearest one-tenth of one cent. The percentage increase for July 1, 2025, is 2.82% (.0282).

See FY 2025-23, Change in the Motor Fuel Tax Rate, Effective July 1, 2025, through June 30, 2026 for more information.