Illinois Used Car Taxes and Fees

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Summary of Illinois vehicle sales taxes and fees

If you’re buying a new or used car, it’s important to know the taxes and fees you may have to pay. Illinois tax on new and used vehicles is generally 6.25% but can vary by location. See the chart below for more.

Here are typical fees in Illinois:

DMV or State Fees

  Vehicle sales tax (for vehicles sold by a dealer) Usually 6.25% but can vary by location Use the Illinois Tax Rate Finder to find your tax
  Vehicle use tax (for vehicles purchased from another individual or private party) Usually 6.25% but can vary by location Use the Illinois Tax Rate Finder to find your tax
  Title Transfer Only Fee $25  
  Title and Transfer Fee $175 ($150 title fee plus $25 transfer fee)  
  Vehicle Registration Fee $150  
  License Renewal Sticker
  • $101 standard renewal sticker
  • $108 personalized plate renewal sticker
  • $114 vanity plate renewal sticker
 
  Local municipal and county private party use taxes Local Tax Information Some regions such as the City of Chicago and Cook county have additional Use Taxes on the purchase of a vehicle.  Refer to the local tax information link for the most up-to-date information.
  Gift Tax $15 Instead of Use Tax, if the transaction meets one of the following:
  • Estate gift to a beneficiary other than a surviving spouse
  • Transferred in a business reorganization
  • Transferred or purchased from a spouse, parent, brother, sister, child, or a party to a civil union.
  Motorcycle or ATVS $25  

Dealership Fees

  Documentation Fees $179.81 Charged to cover administrative costs of the dealer related to the title, registration and other paperwork.
  Advertising Fees Negotiable Check your invoice to see if your dealer is adding on fees related to their advertising. You may be able to negotiate these fees.

Miscellaneous

  Vehicle History Report Fees Varies by provider It's wise to get a vehicle history report when purchasing a used car. If your dealer doesn't provide one, there are plenty of companies you can use such as Carfax and AutoCheck.
  Pre-sale inspection Varies by inspection company A pre-purchase inspection is often done for used cars.  The purchaser usually pays. An inspection can uncover flaws that could change your decision to buy the car.

Do you pay taxes when buying a car privately in Illinois?

You have to pay a use tax when you purchase a car in a private sale in Illinois. The tax rate is based on the purchase price or fair market value of the car. Here’s a vehicle use tax chart.

Do you have to pay taxes on a car that's a gift in Illinois?

You typically have to pay taxes on a car received as a gift in Illinois. You will need Form RUT-50 to report the gift. You may qualify for a tax exemption if:

  • The car was an estate gift for a beneficiary (not a surviving spouse).
  • The car was received due to a business reorganization.
  • The car was transferred or purchased from a spouse, parent, child, brother or sister.

Updated Oct. 10, 2019

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