July 1 pause in gas tax increase will save Illinois drivers just $3.18 
Among new laws taking effect are a Chicago minimum wage increase and driver’s licensing changes for seniors

CHICAGO (June 30, 2026) — While 18 new laws take effect July 1, Illinois drivers will get a temporary break from the usually scheduled annual gas tax hike.

Gov. J.B. Pritzker’s six-month pause will save the average Illinois driver just $3.18, according to an analysis from the Illinois Policy Institute. The automatic increases will resume Jan. 1, 2027, with a 1.3-cent-per-gallon increase.

Since Pritzker doubled the tax in 2019, the average Illinois driver had paid $143 more in gas taxes each year. Without legislative action, Illinois’ inflation-adjusted gas tax could exceed $1 per gallon by 2056, the institute found, more than five times the 19-cent rate in place before Pritzker took office.

“Automatic gas tax increases let lawmakers avoid voting on unpopular tax hikes while claiming credit when they temporarily pause them. Despite Pritzker making affordability a central theme of his fiscal 2027 budget; this brief reprieve does little to alleviate high gas costs and nothing to stop the long-term automatic gas tax increases,” said Patrick Andriesen, senior writer for the Illinois Policy Institute. “In fact, Illinois drivers could see this automatic mechanism again if Pritzker’s tollway tax hike goes into effect next year, further increasing costs for drivers.”

As the fiscal year begins July 1, Illinois taxpayers will be on the hook for other costs and increases.

Other state laws taking effect on July 1 include: 

• Chicago minimum wage hike: Chicago will raise its minimum wage to $17.05 an hour, $2 more than the rest of the state.
• Subminimum wage pause: The Chicago City Council voted to pause the increase in tipped workers’ subminimum wage, which is currently $12.96 an hour. The next increase is slated to take effect July 1, 2028.
• Senior driver license renewal and rules changes: The state is increasing the in-person renewal age to 79, up from 75. Additionally, applicants over 87, or 75 for a commercial license, must prove they can safely operate a motor vehicle.
• Cyberbullying reclassification: Officially classifies posting or distributing sexually explicit images as a form of bullying, and posting or distributing unauthorized digital material as cyberbullying, beginning in the 2026-2027 school year.
• New Department of Early Childhood: The department will oversee programs and services that have been handled by three state agencies.
• Make bus driving more flexible for school districts: Bus drivers can now get a permit that allows them to operate smaller passenger vehicles and a multifunction school activity bus that can carry up to 15 passengers.

To read more about Illinois’ gas tax, visit illin.is/no-vote.

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.