Drivers in Illinois, brace yourselves for a slight uptick in gas prices come July 1. Aligning with the start of Illinois' Fiscal Year 2026, the state's automatic Motor Fuel Tax increase will take effect, based on a law from 2019 aimed at adjusting for inflation. WGNTV reports the rise in tax will be around 2.77% for regular gasoline, taking the tax from 47 cents to 48.3 cents per gallon, and for diesel, the increase will be 2.39%, moving from 54.5 cents to 55.8 cents per gallon.
Considering the average gas tank sizes, Illinois motorists, depending on their vehicle's capacity, could see an increment of approximately 18 cents more per fill-up, as described by J.D. Power. Small cars with 12-gallon tanks and larger vehicles with capacities around 15 gallons or more are expected to experience this increase. Meanwhile, Illinois maintains its position as the state holding the second-highest gas tax rate in the U.S., citing data released by the U.S. Energy Information Administration in January 2025, just trailing behind California.
In addition to fuel costs, changes in Chicago's minimum wage come July 1 will affect businesses and employees alike. Companies in the Windy City with more than four employees will see the minimum wage rise to $16.60 per hour, a decision influenced by changes in the Consumer Price Index, as per NBC Chicago. Tipped workers will also experience an increase, earning $12.62 per hour starting Tuesday.
Environmental conservation efforts have propelled Illinois to implement its “Small Single-Use Plastic Bottle Act” which requires hotels with 50 or more rooms to bid farewell to small single-use plastic bottles. By addressing the immediate risk these plastics pose to the environment, State Sen. Laura Fine told NBC Chicago, "This bill puts our state on the path to being part of a solution by reducing plastic pollution."
Additional fiscal adjustments include a new tax on sports wagers and modifying the tax landscape for short-term rental properties like Airbnb and Vrbo. They are now subject to the state’s Hotel Operators’ Occupation Tax, which had formerly exempted them. Also, tobacco products face a tax increase, with a new rate of 45% of their wholesale price, a leap from the prior 36%, according to details outlined in the state's budget.
