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Informational
Bulletin

FY 2026-23
April 2026

David Harris, Director

This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.

For more information visit: tax.illinois.gov

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FY 2026-23, Change in the Motor Fuel Tax Rate, Effective July 1, 2026, through June 30, 2027

To: All Motor Fuel Distributors 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, 2026, is 2.68% (.0268).

What are the Illinois Motor Fuel Tax rates effective July 1, 2026, through June 30, 2027?

From July 1, 2026, through June 30, 2027, the Illinois Motor Fuel Tax rates (in cents per gallon, DGE1, or GGE2) are as follows:

Diesel3 57.1¢ per gallon
Gasoline4 49.6¢ per gallon
LPG 57.1¢ per DGE5
LNG 57.1¢ per DGE6
CNG 49.6¢ per GGE7

Rate information is available at tax.illinois.gov. Use MyTax Illinois at mytax.illinois.gov to file and pay your Illinois Motor Fuel Tax 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.
4Gasoline 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.

 

Printed by authority of the State of Illinois - Electronic only, One copy