When you are buying and/or selling gas in Illinois, it is very unclear where your money is going. This blog is not written for the mere purpose of smearing the state of IL. I try my best to educate my clients on their audit, their obligations as a vendor of gasoline, as well as to deter future owners of buying a gas station in Illinois and the Chicagoland area.
Breakdown of Hidden Gas Costs in Illinois
Example: Purchasing 15 Gallons of Gas
- Gallons: 15
- Price per Gallon: $2.41
Taxes Included in the Cost
- Federal Motor Fuel Excise Tax: $0.18
- Illinois Environmental Tax: $0.01
- Illinois State Sales Tax: $0.11
- Illinois Excise Tax: $0.19
- Cook County and City Excise Tax: $0.11
- County Home Rule Sales Tax: $0.01
- Home Rule Rule Sales Tax: $0.02
- Regional Transportation Sales Tax: $0.02
Final Breakdown
Raw Price of Gas: $1.75
Total (Gas + Tax): $26.18
Tax Bill Per Gallon: $0.66
Total Tax: $9.97
Need Help with Your Audit?
Call our office to discuss your Illinois Gasoline and Fuel Sales Excise Tax audit.
Frequently Asked Questions
What taxes are included in the price of gasoline in Illinois?
The price of gasoline in Illinois includes multiple taxes: Federal Motor Fuel Excise Tax, Illinois Environmental Tax, Illinois State Sales Tax, Illinois Excise Tax, Cook County and City Excise Tax, County Home Rule Sales Tax, Home Rule Rule Sales Tax, and the Regional Transportation Sales Tax. These layered taxes can make it difficult to understand the true breakdown of costs.
How much of the gas price is actually tax?
In the provided example of purchasing 15 gallons of gas at $2.41 per gallon, approximately $0.66 per gallon is attributed to taxes. This means nearly $10 of the $26.18 total is strictly tax-related.
Why is gas in Illinois, particularly Chicagoland, so expensive?
Gas in Illinois, and especially in Chicagoland, is expensive due to the accumulation of multiple taxes at the federal, state, county, and municipal levels. This tax stacking inflates the final price consumers pay at the pump.
Should I think twice before buying a gas station in Illinois?
Yes. The complexity of taxes, audits, and regulatory obligations in Illinois makes gas station ownership particularly risky compared to other states. This blog aims to educate potential buyers about these hidden financial burdens to help them make informed decisions.
Can your firm help with Illinois gasoline and fuel sales tax audits?
Absolutely. Our office specializes in helping clients navigate the complexities of Illinois Gasoline and Fuel Sales Excise Tax audits. If you’re facing an audit or need guidance, we encourage you to contact us for support.