Chicago's Gas Tax Hike!

• Chicago increased its fuel tax by 3 cents, up from 5 cents to 8 cents per gallon.

• The city's vehicle fuel tax exists in addition to Illinois' motor fuel tax, which is 38 cents per gallon for gasoline & 46 cents per gallon for diesel.

• Certain counties & Chicago gained new power to raise existing gas taxes or impose new ones in 2019 from Gov. J.B. Pritzker's capital plan. The bill doubled the state gas tax to 38 cents from 19 cents per gallon beginning July 2019, plus they tied it the rate of inflation, so it automatically increases each July 1.

• This equates to 47 cents tax per gallon for unleaded fuel & 55 cents per gallon for diesel fuel year-to-date in the Chi-town. That is almost a 22% tax on gasoline fuel, & a 19% tax on diesel fuel in the City of Chicago. "Ouch!"

• In addition, homeowners with a property valued at $250,000 will pay an average of $56 more per year in tax with the tax bill that Mayor Lori Lightfoot passed on November 25, 2020.

For more helpful, complimentary financial information go to tax tips or my blog. Thank you.

In Trust,

Ashley Thomas, CEO, EA