Cheaper across state lines: buying gas in neighboring Wisconsin and Indiana cities saves money

It’s no secret to drivers in the Greater Chicago area that gas prices are cheaper across state lines. Illinoisans who live or work near bordering states often drive the extra few miles out of their way to take advantage of cheaper gas in Wisconsin and Indiana. So how do gas prices – and taxes –...

It’s no secret to drivers in the Greater Chicago area that gas prices are cheaper across state lines.

Illinoisans who live or work near bordering states often drive the extra few miles out of their way to take advantage of cheaper gas in Wisconsin and Indiana.

So how do gas prices – and taxes – stack up among Chicago and nearby cities?

Over in Gary, Ind., gas averages $3.56 a gallon.

Anyone buying gas in Gary pays both a state excise and a state sales tax, which add $0.40 to each gallon of gas.

Up north in Kenosha, Wis., the average gas price is $3.52, according to AAA.

In Kenosha, customers pay one tax on top of the federal tax of $0.18 per gallon – a state excise tax of $0.33.

But the average price of gas in Chicago is $4.06.

A gallon of gas itself costs $3.25. Seven different state and local taxes add $0.63 per gallon.

That’s $0.23 more in taxes than in Gary, and almost double the amount of taxes customers pay in Kenosha.

Gas in all three cities is subject to the federal excise tax, which adds $0.18 per gallon.

It’s clear that Chicago and Illinois’ high-tax environment makes it unattractive to purchase fuel in-state if buyers have the ability to shop elsewhere.

Even the Chicago suburbs have a lower average price per gallon – $3.88. That’s not insignificant, especially for commuters driving to and from the city each day.

Chicago metro area commuters can save almost $0.20 per gallon just by filling up closer to home and avoiding steep pump prices in the city.

And customers who are able can save $0.50 or more per gallon of gas by purchasing in Kenosha and Gary – that’s a total savings of $7.5 for a 15-gallon tank. Assuming a driver fills up once a week, that savings would amount to almost $400 a year.