New Illinois Taxes Hit Gas, Tobacco, and Sports Betting July 1

Thanks to the passing of a new budget in Illinois, residents should prepare now for new taxes that will especially hit hard on gasoline, tobacco and sports betting.

In just a few weeks, many different aspects of your life may start costing you more depending on your lifestyle. In some cases, the new Illinois budget will cost nearly everyone as a gasoline tax is a part of it. According to a report by My Journal Courier, here are the new taxes that will take effect on July 1, 2025.

• The Illinois gas tax will rise to $0.483 per gallon
• Tax on tobacco products will rise from 36% to 45%
• Vaping products will now be considered taxable under the tobacco definition
• Illinois will tax sports betting licensees collecting 25 cents for the first 20 million wagers made and 50 cents after that
• Airbnb and VRBO will now be taxed like hotels are losing tax exempt status

Illinois Policy also reporting that the previous $43 million dollar property tax break will be removed as of July 1.

I have had many friends who live in Illinois who have been sharing their shock when they received their property taxes in the mail. If they weren't pleased with what this year's property tax bill looks like, they surely won't be happy once this new budget takes effect.