Illinois Tax Hikes Hit Hard Starting July 1st

Illinois, let’s cut the music for a minute and get real.

As of July 1st, 2025, the state is coming for your wallet from all angles. And no, this ain’t conspiracy talk—this is fact. While most folks are focused on summer fun, cookouts, and getting that vacation in, Illinois lawmakers slid through some serious tax hikes that start now.

Let’s break it down, no fluff, just straight facts from your favorite truth-teller in the booth.

Gas Tax Going Up… Again

Gas prices in Illinois were already ugly, and now it’s getting worse. The state gas tax is increasing from 47 cents to 48.3 cents per gallon. Diesel is jumping from 54.5 cents to 55.8 cents.

If you drive to work, pick up your kids, or deliver anything for a living, this is yet another hit to your bottom line. They say it’s for roads and infrastructure—but when do we actually see the change in our neighborhoods?

Tobacco and Nicotine Tax Surge

The tax on tobacco, vapes, nicotine pouches, and even nicotine gum is increasing from 36 percent to 45 percent of the wholesale price.

If that’s your coping mechanism, it’s about to cost more to catch your breath. Whether you smoke it, vape it, or chew it, this hike is statewide and unavoidable.

Airbnb and Short-Term Rentals Just Got More Expensive

Booking a weekend stay on Airbnb or Vrbo? Expect to pay more. Illinois is now applying a 6 percent hotel-motel tax on 94 percent of gross receipts for short-term rental platforms.

Family coming to town? Quick getaway? Business trip? You’re going to feel that surcharge in your final receipt, and most people won’t even realize why it’s higher.

Sports Betting Now Comes With a Side of Tax

Here’s one that hits the players and the casuals. Illinois is adding a per-wager tax for sportsbooks.

• 25 cents on every wager up to 20 million bets per year

• 50 cents per wager after that

So if you’re betting on the Bulls, the Bears, or even your friend’s fantasy pick, the state is eating off that ticket before you even have a chance to win.

Your Phone Bill Is Going Up Too

The Telecommunications Tax is rising from 7 percent to 8.65 percent. This increase is tied to funding the 988 Suicide & Crisis Lifeline, which is a critical service—no arguments there.

But the fact remains: every phone call, every text, every data plan just got a little more expensive without much warning or public discussion.

What’s the Goal?

Governor Pritzker and state lawmakers say these increases will help raise about $1 billion in revenue as part of Illinois’ $55 billion budget. That money is earmarked for programs, infrastructure, and social services.

But let’s be honest: the everyday resident will feel the squeeze the hardest. Folks already battling food prices, rent hikes, and gas bills now have to find room for this?

GerryP’s Final Word

This ain’t about politics. This is about awareness. While people are tuned out, distracted, or just trying to survive, the system continues to make moves that directly impact your daily life.

You can’t budget your way around a system that taxes every direction you turn—what you drive, what you smoke, where you stay, how you entertain yourself, and how you stay connected.

Stay informed. Stay woke. And stay tapped in with the only one giving it to you straight every time—GerryPthaDJ.

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