AAA named Chicago a top domestic travel spot for Labor Day. It also said Illinois has some of the nation’s highest gas prices. Thank Illinois taxes for the extra dings at the pump.
Labor Day travel has Illinois on two Top 10 lists from AAA: Chicago is a top domestic destination, and Illinois gas is among the most expensive.
Travel to Chicago will be boosted by the Chicago Jazz Festival and Wing Out Chicago food festival during the Labor Day weekend.
Getting there is pricey, because Illinois’ gasoline tax automatically rose in July to 48.3 cents per gallon. Gov. J.B. Pritzker boosted the gas tax from 19 cents in 2019 and added automatic inflation bumps so state lawmakers would never again need to vote on the unpopular taxes.
The retail price per gallon averaged $3.49 in Illinois, compared to about $2.85 in Missouri and Iowa, about $3.05 in Wisconsin and $3.29 in Indiana.
The difference is taxes, with Illinois charging the nation’s second-highest rate.
The market gave Illinois drivers a break. Last Labor Day the average gas price was higher at $3.67.
Labor Day is one of the busiest travel periods, but data from INRIX shows traveling before noon each day can help avoid congestion.
Each year, Pritzker’s gas tax hike costs drivers $143 more than they paid before he imposed it.
It gets worse: Pritzker’s tax hike is atop existing federal and state gas taxes. Before this July’s tax hike, Illinoisans paid just about 85 cents per gallon in total federal and state taxes and fees. With the July increase, the tax burden per gallon will be about 86 cents.
Illinois also double taxes drivers, charging taxes on taxes. Illinois is one of three states that applies the state’s general sales tax on top of the price of gasoline, after federal taxes have been added.
If you buy gas in Chicago, the tax burden is even worse because drivers pay additional sales taxes to the city and the county. Drivers pay an additional 1.75% of the base price of gasoline, plus federal taxes and underground storage fees, to Cook County. They pay another 1.25% in sales taxes to Chicago.
Chicagoans are not done paying yet: They must also pay additional set amounts of motor fuel tax. They pay 8 cents a gallon to the city and 3 cents to the county.
Fuel taxes hurt some drivers more than others. They eat a larger share of low-income drivers’ budgets, plus those drivers often have older vehicles that are less fuel efficient. Families often have no choice but to pay these taxes so they can go to work, take children to day care or try to enjoy some jazz or hot wings during the last hurrah of summer.
