Revised Motor Fuel Use Tax Rates Effective July 1, 2026, through December 31, 2026

To: All Licensed Interstate Motor Carriers

This bulletin replaces FY 2026-24, Change in the Motor Fuel Use Tax Rate, Effective July 1, 2026, through December 31, 2026* (N-04/26).

Public Act 104-0468, signed June 16, 2026, suspended the scheduled July 1, 2026, Consumer Price Index adjustment related to the motor fuel tax rate for 6 months from July 1, 2026, through December 31, 2026. This change required the Illinois Department of Revenue (IDOR) to recalculate the rates as shown below.

Motor Fuel Use Tax is comprised of two parts, “Part A” and “Part B.” The rates listed here are effective July 1, 2026, through December 31, 2026. The rates listed in this bulletin are applicable to interstate commercial motor vehicles.

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. The Motor Fuel Tax Law provides that the rate will be increased 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 that year. 35 ILCS 505/2.

From July 1, 2026, through December 31, 2026, the “Part A” rates (in cents per gallon, DGE¹, or GGE²) are as follows:

* Original bulletin included Motor Fuel Tax Rates calculated prior to the suspension. Updated bulletin shows rates for the suspension period. Bulletin reissued June 16, 2026.

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.

From January 1, 2026, through December 31, 2026, the “Part B” rates (in cents per gallon, DGE1, or GGE2) are as follows:

From January 1, 2026, through December 31, 2026, the Motor Fuel Use Tax rates for the fuels listed below are as follows:

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.

² "GGE" means gasoline gallon equivalent.
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).
⁴Gasoline includes gasohol.
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.
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.
⁷ A GGE of CNG = 5.66 pounds of CNG.