Illinois has a layered tax system for vehicle purchases. The base state rate is 6.25%, but depending on where you live and where you purchase, additional local taxes may apply. Here’s the complete breakdown:
State Tax Rates
| Rate Type | Percentage | Application |
|---|---|---|
| Base State Tax | 6.25% | All vehicle purchases |
| Private Party Sales | 6.25% | Purchases ≥$15,000 from private sellers |
Local Tax Rates by Region
| Location | Additional Rate | Total Combined Rate |
|---|---|---|
| Most Illinois Counties | 0.00% | 6.25% |
| RTA Counties (DuPage, Kane, Lake, McHenry, Will) | +0.75% | 7.00% |
| Metro-East (Madison, St. Clair) | +0.25% | 6.50% |
| Cook County (outside Chicago) | +1.00% | 7.25% |
Dealer Sales Tax Calculation
When purchasing from a licensed dealership, the tax is calculated on the net purchase price—the agreed price minus any trade-in allowance. This is one of the biggest advantages of dealer purchases: your trade-in reduces your taxable amount dollar-for-dollar.
Key Rule: Trade-In Deduction
Since January 1, 2022, Illinois allows the full trade-in value to be deducted from the purchase price before calculating tax. There is no longer a cap on this deduction. This change was enacted through Public Act 101-0604.
Formula
Taxable Amount = Purchase Price − Trade-In Value
Tax Due = Taxable Amount × (Base Rate + Local Rate)
Example 1: Standard Purchase in Springfield (Sangamon County)
Purchase Price:
$28,000
Trade-In Value:
$8,000
Taxable Amount:
$28,000 − $8,000 = $20,000
Tax Rate (base only):
6.25%
Tax Due:
$20,000 × 0.0625 = $1,250.00
Example 2: Luxury Purchase in Naperville (DuPage County – RTA)
Purchase Price:
$55,000
Trade-In Value:
$15,000
Taxable Amount:
$55,000 − $15,000 = $40,000
Tax Rate (6.25% + 0.75% RTA):
7.00%
Tax Due:
$40,000 × 0.07 = $2,800.00
Important: Manufacturer Rebates
Unlike trade-ins, manufacturer rebates and dealer incentives do NOT reduce your taxable amount. You pay tax on the full price before rebates are applied.
Private Party Sales (RUT-50)
Private party sales are handled differently from dealer transactions. You’ll file Form RUT-50 (Private Party Vehicle Use Tax Transaction) with the Secretary of State when titling the vehicle. The tax calculation depends on the vehicle’s purchase price.
No Trade-In Deduction
Unlike dealer sales, private party transactions do not allow trade-in deductions. Tax is calculated on the full purchase price or fair market value.
For Vehicles Priced at $15,000 or More
A flat 6.25% tax rate applies to the full purchase price:
Tax Due = Purchase Price × 6.25%
For Vehicles Priced Under $15,000
Illinois uses an age-based flat tax schedule instead of a percentage. This often results in lower taxes for older, less expensive vehicles:
RUT-50 Age-Based Tax Table
1 year: $390
2 years: $290
3 years: $215
4 years: $165
5 years: $115
6 years: $90
7 years: $80
8 years: $65
9 years: $50
10 years: $40
11+ years: $25
Example 1: Private Sale Under $15,000
Purchase Price:
$12,500
Vehicle Age:
6 years old (2018 model)
Tax Due (from table):
$90.00
Note: If the 6.25% rate applied, tax would be $781.25—the age-based table saves $691.25!
Example 2: Private Sale at $15,000+
Purchase Price:
$22,000
Vehicle Age:
3 years old
Tax Rate:
6.25% (age table doesn’t apply)
Tax Due:
$22,000 × 0.0625 = $1,375.00
Out-of-State Purchases
If you purchase a vehicle in another state and bring it to Illinois, you may owe Illinois use tax. However, you’ll receive credit for any sales tax legitimately paid to the other state, reducing your Illinois tax liability.
Formula
Illinois Tax Liability = Taxable Amount × Illinois Rate
Credit = Minimum of (Tax Paid to Other State, Illinois Tax Liability)
Tax Due to Illinois = Illinois Tax Liability − Credit
Example 1: Purchase from Missouri Dealer
Purchase Price:
$30,000
Trade-In Value:
$5,000
Taxable Amount:
$25,000
Missouri Tax Paid (4.225%):
$1,056.25
Illinois Tax Liability (6.25%):
$1,562.50
Credit Applied:
$1,056.25
Tax Due to Illinois:
$1,562.50 − $1,056.25 = $506.25
Example 2: Purchase from Indiana (Higher Tax State)
Purchase Price:
$20,000
Indiana Tax Paid (7%):
$1,400.00
Illinois Tax Liability (6.25%):
$1,250.00
Credit Applied:
$1,250.00 (limited to IL liability)
Tax Due to Illinois:
$0.00
Note: You don’t get a refund for the extra $150 paid to Indiana—you simply owe nothing additional to Illinois.
Title Fees
All vehicle purchases require a new title from the Illinois Secretary of State. The standard title fee is $165 for most transactions.
| Title Type | Fee |
|---|---|
| Standard New Title | $165 |
| Duplicate/Corrected Title | $50 |
| Salvage Title | $20 |
| Junking Certificate | $0 |
Example 1: Standard Vehicle Purchase
Purchasing a used car from a dealer → $165 title fee
Example 2: Rebuilt Salvage Vehicle
Titling a rebuilt salvage vehicle → $20 salvage title fee{/* Registration Fees */}
Registration Fees
Registration fees vary based on vehicle type and, for trucks and trailers, gross vehicle weight (GVW). These fees cover your license plates and annual registration.
Passenger Vehicles & Motorcycles
| Vehicle Type | Annual Fee |
|---|---|
| Passenger Vehicle (≤8,000 lbs) | $151 |
| Motorcycle | $41 |
Trailers (by Gross Vehicle Weight)
| Weight Range | Annual Fee |
|---|---|
| Up to 3,000 lbs | $36 |
| 3,001 – 10,000 lbs | $185 |
| 10,001 – 20,000 lbs | $245 |
| 20,001 – 36,000 lbs | $650 |
| 36,001 – 40,000 lbs | $860 |
Example 1: Standard Sedan
2023 Toyota Camry (passenger vehicle) → $151 registration fee
Example 2: Utility Trailer
6,000 lb enclosed cargo trailer → $185 registration fee{/* EV Surcharges */}
Electric Vehicle Surcharges
Illinois imposes annual surcharges on electric and hybrid vehicles to offset reduced motor fuel tax revenue. These surcharges are collected at registration and renewal.
| Vehicle Type | Annual Surcharge |
|---|---|
| Full Electric (BEV) | $100 |
| Plug-in Hybrid (PHEV) | $100 |
| Hybrid (non plug-in) | $100 |
| Gas/Diesel Vehicle | $0 |
Example 1: Tesla Model 3
Full electric vehicle → $100 annual EV surcharge
Example 2: Toyota Prius Prime
Plug-in hybrid → $100 annual surcharge{/* Other Fees */}
Additional Fees
| Fee Type | Amount | When Applied |
|---|---|---|
| Plate Transfer | $25 | Moving plates from a previous vehicle |
| Electronic Filing (ERT) | $25 | Dealer transactions only |
Official References & Sources
This calculator and guide are based on official Illinois state publications and regulations. We recommend consulting these primary sources for the most current information:
Illinois Department of Revenue
- Form RUT-50 Instructions – Private Party Vehicle Use Tax
- Form RUT-25 Instructions – Vehicle Use Tax for Out-of-State Purchases
- Form ST-556 Instructions – Sales Tax Transaction Return (Dealer Sales)
- Tax Rate Finder – Local Tax Rates by Municipality
Illinois Secretary of State
- Title & Registration Information – Official fee schedules and requirements
- License Plate Guide – Plate types and fees
Illinois General Assembly
- Illinois Vehicle Code (625 ILCS 5/) – Vehicle registration and fee statutes
- Public Act 101-0604 – Trade-in deduction changes (2022)
Disclaimer
This calculator and guide are provided for informational purposes only. While we strive for accuracy based on official Illinois state sources, tax rates and fees are subject to change. Always verify current rates with the Illinois Department of Revenue or Secretary of State before making financial decisions. This tool does not constitute tax, legal, or financial advice.