Illinois’ grocery tax ends on June 30. Expect a 1% increase, adding $1.45 to a $145.29 food purchase. Gas tax hike starts on July 1.
Illinois’ 1% grocery tax was suspended last year. The food tax and gas tax increase return on July 1.
Learn about each tax and how much Illinois food and petrol may cost.
Illinois Grocery Tax
The 2022 $46.5 billion state budget postponed Illinois’ 1% grocery tax to help people coping with rising prices and inflation. Officials estimated the extension would save taxpayers $400 million in the fiscal year.
“Food for human consumption that is to be consumed off the premises where it is sold” was tax-free for 12 months. The grocery tax suspension excluded alcoholic beverages, soft drinks, confectionery, and ready-to-eat food.
State documents end the tax holiday on June 30, 2023.
The Illinois Department of Revenue estimates a 1% tax would add $1.45 to a $145.29 food purchase.
Illinois Gas Tax
Last year, the state’s 2023 budget delayed a mandated inflation-linked gas tax rise by six months.
On Jan. 1, the fuel tax on unleaded gasoline in Illinois rose to 42.4 cents per gallon, up 3.2 cents from the previous year.
The Rebuild Illinois infrastructure package, passed by the General Assembly in 2019, mandates an inflation-based gas tax hike on July 1. For nearly 20 years, the state gas tax was 19 cents per gallon.
The state’s 2023 fiscal year budget allows for a second gasoline tax rise in 2024.
Rates for January 1–June 30, 2023:
- gasoline/gasohol – $0.423 per gallon
- diesel fuel – $0.498 per gallon
- liquefied petroleum gas (LPG) – $0.498 per gallon1
- liquefied natural gas (LNG) – $0.498 per gallon2
- compressed natural gas (CNG) – $0.423 per gallon3
Rates for January 1–June 30, 2023:
- gasoline/gasohol – $0.454 per gallon
- diesel fuel – $0.529 per gallon
- liquefied petroleum gas (LPG) – $0.529 per gallon1
- liquefied natural gas (LNG) – $0.529 per gallon2
- compressed natural gas (CNG) – $0.454 per gallon3
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