SPRINGFIELD, Ill. (WTVO) — On July 1st, 2025, several new laws and tax changes are set to go into effect in Illinois.
Most of the state’s newly enacted laws came into effect on January 1st, 2025, including a hike in the minimum wage. However, some laws are scheduled to be implemented during the latter half of the year.
These legislative updates were approved during the 2024 and 2025 sessions and were signed into law by Governor JB Pritzker. They encompass areas such as environmental standards, labor rights, and tax regulations.
Increase in the Motor Fuel Tax
The automatic annual Motor Fuel Tax increase was put in place to account for inflation.
Currently, Illinois residents pay the second-highest gas tax in the country, behind California.
The gas tax, currently set at 45 cents per gallon, is slated to increase to 48.3 cents per gallon on July 1st. Additionally, the tax on diesel fuel will go up from 54 to 55 cents per gallon.
Ban on single-use plastic bottles in hotels
Senate Bill 2960 bans hotels with 50 or more rooms from providing small single-use plastic bottles (under 6 ounces) for products such as shampoo, conditioner, or soap. The measure is meant to reduce plastic waste. The bill goes into effect on July 1st, 2025. Hotels will fewer than 50 rooms will have until January 1st, 2026, to comply.
Sales tax on leases and rentals
Effective on July 1st, 2025, House Bill 4951 changes how sales tax is handled on leased or rented property. In the past, lessors paid sales tax on the purchase of property — other than motor vehicles, watercraft, aircraft, and semi-trailer — and did not collect tax on lease payments. Under the new law, lessors can purchase property tax-free using a resale exemption and charge sales tax on lease or rental payments. The new law also impacts lessors of certain computer software licenses.
Training in opioid overdose reversal medication
House Bill 5028 requires the state to train employees in the use and administration of opioid antagonists, such as Narcan (naloxone), starting July 1st, 2025. The law aims to combat opioid overdoses by training state employees to respond effectively in emergencies.
For a full list of new laws in Illinois in 2025, go here.
