Illinois Motor Fuel Tax Rates Increase 2.68% Effective July 2026
Summary
The Illinois Department of Revenue has published FY 2026-23 announcing the annual adjustment to Motor Fuel Tax rates effective July 1, 2026 through June 30, 2027. The tax rate is increased by the Consumer Price Index for All Urban Consumers percentage increase of 2.68% (.0268) for the 12 months ending in March. The new rates are Diesel at 57.1 cents per gallon, Gasoline at 49.6 cents per gallon, LPG at 57.1 cents per DGE, LNG at 57.1 cents per DGE, and CNG at 49.6 cents per GGE. This bulletin is addressed to all motor fuel distributors, receivers, users and sellers of alternative fuel, and non-highway use motor fuel tax refund claimants.
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GovPing monitors IL DOR Informational Bulletins for new tax regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 13 changes logged to date.
What changed
The bulletin announces the annual indexed adjustment to Illinois Motor Fuel Tax rates under Section 2 of the Motor Fuel Tax Law (35 ILCS 505/2). The CPI-U increase for the 12 months ending in March 2026 is 2.68%, resulting in updated per-gallon rates for diesel (57.1 cents), gasoline (49.6 cents), LPG (57.1 cents per DGE), LNG (57.1 cents per DGE), and CNG (49.6 cents per GGE). These rates apply from July 1, 2026 through June 30, 2027. Affected parties—including motor fuel distributors, receivers, alternative fuel sellers, and non-highway use refund claimants—should update their tax calculation systems and compliance procedures to reflect the new rates before July 1, 2026. Motor fuel tax returns filed through MyTax Illinois should reflect the updated rates for the period beginning July 1, 2026.
Archived snapshot
Apr 27, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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Employment Sign Up for Updates
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.
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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, DGE 1, or GGE 2) are as follows:
| Diesel 3 | 57.1¢ per gallon |
| Gasoline 4 | 49.6¢ per gallon |
| LPG | 57.1¢ per DGE 5 |
| LNG | 57.1¢ per DGE 6 |
| CNG | 49.6¢ per GGE 7 |
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.
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.
Printed by authority of the State of Illinois - Electronic only, One copy
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