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Informational
Bulletin
FY 2025-22
May 2025
This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.
For information:
Visit our website at:
tax.illinois.gov
For questions about local tax rates, email:
Rev.LocalTax@illinois.gov
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Change in the Motor Fuel Use Tax Rate, Effective July 1, 2025, through December 31, 2025
To: All International Fuel Tax Agreement (IFTA) Licensees
Illinois Motor Fuel Use Tax is comprised of two parts, Part A and Part B. 35 ILCS 505/13a. This tax is reported and paid by licensees under the International Fuel Tax Agreement (IFTA). The rates listed here are effective July 1, 2025, through December 31, 2025, for use on the quarterly IFTA returns.
What is the Illinois Part A rate?
The Part A rate is established by Section 2 of the Motor Fuel Tax Law, which imposes the tax per gallon on all motor fuel used in motor vehicles operating on Illinois public highways and in recreational type watercraft operating on Illinois waters. 35 ILCS 505/2
What are the Illinois Part A motor fuel tax rates effective July 1, 2025 through June 30, 2026?
Effective July 1, 2025 through June 30, 2026, the Part A tax rates (in cents per gallon, DGE1 , or GGE2 ) are as follows:
Diesel3 55.8¢ per gallon
Gasoline4 48.3¢ per gallon
LPG 55.8¢ per DGE5
LNG 55.8¢per DGE6
CNG 48.3¢ per GGE
What is the Illinois Part B rate?
The Illinois Department of Revenue (IDOR) is required to establish the Part B rate of the Motor Fuel Use Tax for diesel fuel, gasoline, gasohol, liquefied petroleum gas (LPG, commonly known as propane), compressed natural gas (CNG), and liquefied natural gas (LNG).
The Part B rate is established by IDOR as of January 1 of each year using the average selling price per gallon of motor fuel sold in Illinois during the previous 12 months and multiplying it by 6.25 percent to determine the cents per gallon rate. 35 ILCS 505/13a(2).
What are the Illinois Part B motor fuel tax rates effective January 1, 2025 through December 31, 2025?
The Part B tax rates (in cents per gallon, DGE1 , or GGE2 ) are as follows:
Diesel3 19.1¢ per gallon
Gasoline4 18.6¢ per gallon
LPG 17.2¢ per DGE5
LNG 15.3¢ per DGE6
CNG 12.6¢ per GGE
What is the Motor Fuel Use Tax rate effective July 1, 2025, through December 31, 2025?
Effective July 1, 2025, through December 31, 2025, the Motor Fuel Use Tax rates for the fuels listed below are as follows:
| Part A | Part B | Motor Fuel Use Tax Rate | |||
|---|---|---|---|---|---|
| Diesel | 55.8¢ | + 19.1¢ | = 74.9¢ per gallon | ||
| Gasoline | 48.3¢ | + 18.6¢ | = 66.9¢ per gallon | ||
| LPG | 55.8¢ | + 17.2¢ | = 73.0¢ per DGE | ||
| LNG | 48.3¢ | + 15.3¢ | = 71.1¢ per DGE | ||
| CNG | 55.8¢ | + 12.6¢ | = 60.9¢ per GGE |
Rate information is available at tax.illinois.gov. Use MyTax Illinois at mytax.illinois.gov to renew your IFTA license, order decals, and file and pay quarterly returns
1 “DGE” means diesel gallon equivalent. 35 ILCS 505/1.8.
2 “GGE” means gasoline gallon equivalent. 35 ILCS 505/1.8.
3 Diesel fuel is defined as any product intended for use or offered for sale as a fuel for engines in which the fuel is injected into the combustion chamber and ignited by pressure without electric spark (includes biodiesel). 35 ILCS 505/2(b); 35 ILCS 105/3-41.
4 Gasoline includes gasohol. See 35 ILCS 105/3-40.
5 A DGE of LPG = 6.41 pounds of LPG. The conversion ratio used to calculate the LPG rate is one gallon = 0.651 DGEs of LPG. 35 ILCS 505/1.8A.
6 A DGE of LNG = 6.06 pounds of LNG. The conversion ratio used to calculate the LNG rate is one gallon = 0.5776 DGEs of LNG. 35 ILCS 505/1.8A.
7 A GGE of CNG = 5.66 pounds of CNG. 35 ILCS 505/1.8B.