Viral social media posts have claimed Illinois could “soon” impose a mileage tax of 30 cents per mile driven, but is that actually looming for motorists?

The short answer to that question is no. The measure that included a per-mile tax stalled out in the General Assembly during the spring session, and was never brought up for a vote before the Senate’s transportation committee.

What’s more, the “30 cents per mile” claim is not found within the text of the legislation, with the actual number likely being significantly lower.

So what is the proposed mileage tax? Why is it being proposed? How much would it cost drivers? Here are the answers to those and other questions surrounding the proposed idea.

What is the “Illinois mileage tax”?

The proposed system would operate exactly the way residents would think. Drivers would be assessed a specific tax rate for each mile they drive within the state they reside in.

Why are mileage taxes being proposed?

Illinois has one of the highest gas tax rates in the nation, with the state’s per-gallon tax rate on gasoline rising to $0.483 per gallon beginning on July 1.

That rate does not include taxes levied on retailers for petroleum products, along with sales taxes and even municipal tax rates, which are allowed under Illinois law.

When all of that is combined, Illinois drivers pay an average of 67.1 cents per gallon in fuel taxes, trailing only California in that category, according to NerdWallet.

Since those fuel taxes go toward maintaining roads and bridges in the state, it’s imperative that the state raises enough money to help pay for that maintenance. Due to improvements in fuel efficiency and the more widespread adoption of electric vehicles however, those tax revenues have not been going up fast enough to address wear-and-tear on area roadways, leaving states across the country struggling to keep up with maintenance costs, according to the Brookings Institute.

As a result, more states are weighing different options to pay for maintenance, including instituting tolls and charging drivers per mile driven, regardless of the type of vehicle that they are driving.

What’s in Illinois’ version of the mileage tax bill?

The bill in question, Senate Bill 1938, would have created a statewide pilot program to assess user fees for the number of miles traveled on public roadways.

The idea behind the pilot program was to evaluate the “potential for mileage-based revenue as an alternative to the current system of taxing highway use through motor fuel taxes,” according to the text of the legislation.

The program would include at least 1,000 volunteers, and the pilot would be required to last for at least one year. Participants would have received rebates for their motor fuel taxes incurred during the course of the year.

In addition, the per-mile pricing would have varied based on the time of day drivers are using roadways, and what type of roadway they were driving on at a given time.

How would mileage be tracked?

Some critics of mileage taxes have argued that requirements to use electronic tracking devices would violate the civil liberties of drivers, arguing that multiple Constitutional amendments cover such rights.

Illinois’ system would have allowed for drivers to use such electronic devices, but would have also allowed them to explore other tracking means, including taking photos of the odometers in their vehicles.

What is the current status of the legislation?

SB 1938 was first introduced by State Sen. Ram Villivalam in early February, and was referred to the transportation committee during the spring session of the Illinois General Assembly.

A vote on the bill in the committee was postponed in March, and the measure was never brought up for a vote before the end of the session. It was re-referred to the assignments committee on June 2, according to the General Assembly’s website.

How much would Illinois’ tax rate be?

While no specific tax rate was included in the proposed legislation, the expectation is that the Illinois tax rate would be around three-to-four cents per mile driven on state roadways, according to the Chicago Sun-Times.

For context, a driver who racks up 10,000 miles on Illinois roadways under a three-cent tax would pay $300 in taxes for the year. If their vehicle gets 30 miles per gallon on average, they would pay roughly $161 a year in Illinois fuel taxes.

Do any other states have mileage taxes?

According to a 2024 report from the Tax Foundation, several states, including Oregon, Utah, and Virginia have instituted active programs to charge tax per mile.

In Utah, only drivers of electric cars can enroll, paying $0.016 per mile. It’s tracked either via an onboard device or a smartphone app, providing location data.

In Oregon, drivers who sign up for their program pay two cents per mile, but are given a discount on fees paid for their vehicle registrations, saving between $35 and $115 annually, according to officials.

Legislators there are mulling a new bill that would raise the state’s gas tax from 40 cents per gallon to 55 cents per gallon. That would take place over a period of three years.

In addition, the road usage tax would increase to 5% of the state’s gas tax, raising it to 2.75 cents per mile.