Illinois (IL) Car Sales Tax & Fees [+ Calculator]
Michael Collado is a car buying expert and has been a professional automotive writer since 2009. He’s written about dealership sales, vehicle reviews and comparisons, and service and maintenance for over 100 national automotive dealerships. Previously, Collado was a copywriter at the ad agency TBWA/Chiat/Day where he worked on brand campaigns for Nissan, ABC Television, Sony PlayStation, and Energizer. His recognition in the ad industry includes awards from Communication Arts and The Clios.
Collado has a Bachelor’s degree from the University of South Florida, with a major in Psychology and a minor in Marketing.
Buying a car in Illinois brings its own set of challenges, especially when you start to factor in the sales tax and additional fees that can catch many buyers by surprise.
We understand this complexity because we've been through it ourselves. Let's cut through the complexity together.
Our expert editors lay out exactly what you need to know about Illinois' sales tax rates for vehicles (6.25%), including how these costs vary by location and the specifics of calculating these expenses for both new and used cars.
Our aim? To equip you with all the information you need, ensuring no hidden costs catch you off guard as you make your purchase.
Table of Contents
- What You Need to Know About Car Sales Tax in Illinois Video
- How Much Is the Car Sales Tax in Illinois?
- How to Calculate Illinois Sales Tax on a Car
- Illinois Vehicle Sales Tax Calculator
- Do I Have to Pay Sales Tax on a Used Car?
- Which County Has the Highest Tax? Which Has the Lowest?
- Car Sales Tax for Trade-Ins in Illinois
- Car Sales Tax on Private Sales in Illinois
- Tax on Rebates & Dealer Incentives
- Illinois DMV/State Fees
- When Sales Tax Is Exempt in Illinois
- Illinois EV Rebates & Incentives
- Conclusion
- Best Car Deals by Category
- Frequently Asked Questions
What You Need to Know About Car Sales Tax in Illinois Video
How Much Is the Car Sales Tax in Illinois?
The state sales tax on a car purchase in Illinois is 6.25%. Therefore, you will be required to pay an additional 6.25% on top of the purchase price of the vehicle. The amount of taxes you pay will also depend upon the age of your vehicle. For more information about this, you should check out Forms RUT-6 and RUT-50, which break down how much you would pay according to the vehicle’s age and also vehicle type.
However, this does not include any potential local or county taxes.
The average local tax rate in Illinois is 1.903%, which brings the total average rate to 8.153%.
How to Calculate Illinois Sales Tax on a Car
You can calculate the sales tax in Illinois by multiplying the final purchase price by .0625%.
For example, let’s say that you want to purchase a new car for $30,000, you would use the following formula to calculate the sales tax:
$30,000 x .0625= $1,875
This means that your sales tax is $1,875 on a $30,000 purchase price.
Calculate Car Sales Tax in Illinois Example:
- Initial Car Price: $30,000
- Sales Tax Rate: 6.25%
- Trade-In Amount: $5,000
- Manufacturer/Dealer Rebate: $2,000
Sales Tax = ($30,000 - $5,000) * .0625
Sales Tax = $1,562.50
Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees.
Illinois Vehicle Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
Yes, in Illinois, you must pay the car sales tax on a used vehicle. The sales tax rules remain the same whether the car is new or used.
Still, purchasing a used car is a wise choice for many. The overall price will be lower, which means you will pay less in sales tax than with a new vehicle.
Which County Has the Highest Tax? Which Has the Lowest?
Cook County, which consists of cities like Chicago, Calumet City, and Harvey, has the highest tax rate of 11.5%.
Mclean and Ogle Counties have the lowest tax rate of 6.25%.
Car Sales Tax for Trade-Ins in Illinois
You don’t have to pay sales tax on trade-ins in Illinois. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.
As an example, let’s say you are purchasing a new SUV for $35,000 and your trade-in is worth $10,000. You will subtract the trade-in value by the purchase price and get $25,000. Therefore, your car sales tax will be based on the $25,000 amount.
As of January 1st, 2022, Illinois removed the $10,000 cap on trade-ins for tax savings. Now car buyers can receive the full tax credit on trade-ins.
Car Sales Tax on Private Sales in Illinois
A sales tax is required on all private vehicle sales in Illinois.
However, if the vehicle is less than $15,000 the tax amount is based on the model year. Here is a breakdown:
- 2021 or newer - $465
- 2020 - $365
- 2019 - $290
- 2018 - $240
- 2017 - $190
- 2016 - $165
- 2015 - $155
- 2014 - $140
- 2013 - $125
- 2012 - $115
- 2011 or older - $100
If the vehicle is over $15,000, then tax is determined by the purchase price. Here is a breakdown:
- $15,000 to $19,999.99 - $850
- $20,000 to $24,999.99 - $1,100
- $25,000 to $29,999.99 - $1,350
- $30,000 to $49,999.99 - $1,600
- $50,000 to $99,999.99 - $2,600
- $100,000 to $999,999.99 - $5,100
- $1,000,000 or more - $10,100
Tax on Rebates & Dealer Incentives
You have to pay tax on dealer and manufacturer rebates in Illinois. In other words, do not subtract the rebate/incentive amount from the car price before calculating sales tax.
As an example, if you are purchasing a new car for $30,000 with a $5,000 rebate, you will pay sales tax on the full $30,000 cost of the car.
Illinois DMV/State Fees
There are some other state and DMV fees associated with the purchase of a vehicle in Illinois.
A few of these fees include:
- Registration Fee: $151
- Title Fee: $155
- Plate Transfer Fee: $26
Illinois Dealership Fees
Dealerships apply extra fees, sometimes referred to as “doc fees,” with the sale of the car.
Though these fees vary based on the dealership, the average fee in Illinois is $160, with a statewide limit of $324.24 on how much dealerships can charge.
When Sales Tax Is Exempt in Illinois
Much like every state, Illinois has some sales tax exemptions for vehicle sales. Exemptions include:
- Purchaser is a tax-exempt organization
- Vehicles used in agriculture
- Vehicle is an estate gift to a surviving spouse
- Out-of-state purchaser and vehicle was used outside Illinois for at least three months.
Some exceptions (tax due is $15) include:
- Vehicle is an estate gift to someone other than surviving spouse
- Vehicle is transferred in a business organization
- Vehicle is transferred from a spouse, parent, brother, sister, or child.
Illinois EV Rebates & Incentives
Illinois offers up to $4,000 in rebates on a new or used electric vehicle purchase. This is on top of the up to $7,500 rebate offered by the federal government.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
Conclusion
Understanding Illinois vehicle sales tax and fees is crucial for a transparent and effective car buying experience. With the right knowledge, you can navigate these additional costs confidently, ensuring you're fully prepared for the financial aspects of your purchase.
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