A number of new Illinois laws and tax changes are set to take effect on July 1—including higher surcharges on everyday needs like gas.
Here are the changes going into effect, plus how they could affect your daily life—and your wallet.
Gas tax hike
Illinois’ automatic Motor Fuel Tax increase will go into effect on July 1, raising the current tax rate of 47 cents per gallon to 48.3 cents per gallon, according to the state revenue office.
Taxes on diesel fuel will also increase from 54.5 cents per gallon to 55.8 cents per gallon.
Minimum wage increase
Effective July 1, the standard minimum wage in Chicago will increase to $16.60 per hour, while the tipped minimum wage for service workers will increase to $12.62 per hour.
The increases are in line with Chicago’s Minimum Wage Ordinance. The ordinance mandates that the minimum wage rise each year based on the Consumer Price Index or by 2.5%, depending on which is lower.
Ban on single-use plastic water bottles in hotels
Senate Bill 2960 will go into effect July 1, banning single-use plastic bottles in hotel rooms for hotels with a capacity of 50 rooms or more.
The bill will go into effect for smaller hotels with 50 rooms or fewer on January 1, 2026.
Sales tax increases on leases and rentals
Sales taxes on leased and rented property will change on July 1 under House Bill 4951. Previously, lessors (excluding those leasing motor vehicles, boats, aircraft, and semi-trailers) paid sales tax upfront when purchasing property.
Under the new law, they can now buy property tax-free using a resale exclusion. Lessors will instead collect sales tax from customers on each lease or rental payment.