Buying a vehicle in Illinois comes with more than just the sticker price. Between the state sales tax, local taxes, and registration fees, your final cost can be significantly higher than expected—unless you know how to navigate the system.
This guide breaks down how Illinois vehicle sales tax works, explains county surtaxes, and reveals strategies to help you save thousands on your next vehicle purchase or registration.
Illinois Vehicle Sales Tax Overview
Illinois charges a state sales tax of 6.25% on most vehicle purchases. However, additional local taxes may apply depending on where you live or register the vehicle.
Here’s the general breakdown:
- State sales tax: 6.25%
- Local tax (varies by county and city): Up to 2.75%
- Total potential tax rate: Up to 9% or more in some areas
The total tax is based on either the purchase price or the fair market value of the vehicle, depending on the sale type.
Tax on Dealer vs. Private Sales in Illinois
Illinois distinguishes between vehicle purchases from a licensed dealership and those from a private seller:
- Dealer purchases: Tax is based on the actual purchase price.
- Private party purchases: Tax is based on the vehicle’s age and type, using a flat-rate chart published by the Illinois Department of Revenue.
Example: A private sale of a 6-year-old passenger vehicle would typically be taxed at a flat rate of $90 (as of 2024).
See the most recent private sale tax chart here: https://tax.illinois.gov/research/taxinformation/sales/vehicle.html
Local Sales Tax Rates in Illinois
Local governments in Illinois can impose additional taxes on vehicle sales. These vary by:
- County
- Municipality
- Regional Transportation Authority (RTA) districts
The Illinois Department of Revenue maintains an up-to-date list of local sales tax rates here:
https://tax.illinois.gov/research/taxrates.html
Other Fees in Illinois Vehicle Transactions
In addition to sales tax, you’ll need to budget for the following:
- Title fee: $155
- Standard registration fee: $151 (passenger vehicles)
- Transfer fee: $25 (for transferring license plates)
- New plate fee: $29 (if new plates are needed)
- Emission testing fee: Required in certain regions (no additional cost for the test, but required to pass)
For a complete list, visit the Illinois Secretary of State: https://www.ilsos.gov/departments/vehicles/basicfees.html
Tips to Save Thousands on Illinois Vehicle Taxes
- Trade-In Credits
Illinois allows trade-in deductions when buying from a dealer. You only pay sales tax on the difference between the new vehicle’s price and the trade-in value. - Buy Privately for Older Vehicles
Private sales of vehicles older than 7 years come with flat-rate tax amounts, often lower than what you’d pay through a dealership. - Register in a Lower-Tax Area (if legal)
Sales tax is based on the registration address, not the dealer location. If you have a second residence or valid out-of-state registration option, this may lower your tax liability. - Avoid Overpaying on Add-Ons
Extended warranties, documentation fees, and accessories may be taxed. Ask for a breakdown and remove what you don’t need. - Use a Registration Service
Services like Ride Legal can help ensure all paperwork is submitted correctly and help you structure your transaction for the biggest legal savings.
Example of Vehicle Sales Tax Costs in Illinois
Below is an example of what you might pay in vehicle sales tax depending on location and purchase amount.
| Purchase Price | Example Local Rate | Total Tax Rate | Estimated Tax Paid | Total Cost with Tax |
|---|---|---|---|---|
| $15,000 | Chicago (2.75%) | 9.00% | $1,350 | $16,350 |
| $30,000 | Cook County (1.25%) | 7.50% | $2,250 | $32,250 |
| $45,000 | Rural Illinois (0.00%) | 6.25% | $2,812.50 | $47,812.50 |
What This Means for Your Vehicle Purchase
Illinois has one of the more complex vehicle tax systems in the country due to its many layers of local taxes and split rules for private vs. dealer sales. That means your total tax bill could range from under $100 to several thousand dollars, depending on how and where you buy.
Planning ahead, asking questions, and knowing what exemptions and credits you qualify for can make a major impact on your total cost.
Ready to Save on Your Vehicle Sales Tax in Illinois?
Whether you’re buying a car in Chicago or registering a used truck from a private seller downstate, Ride Legal helps you avoid overpaying on taxes and fees. We work with buyers, sellers, and out-of-state registrants to streamline every step—from title to tax.
Reach out to Ride Legal today and let us help you save thousands on your Illinois vehicle purchase.
Frequently Asked Questions About Illinois Vehicle Sales Tax
Q: What is the vehicle sales tax in Illinois?
A: The state sales tax is 6.25%, but local taxes can increase your total rate to 8–9% or more, depending on your location.
Q: Do private vehicle sales have different tax rules?
A: Yes. For private sales, Illinois uses a flat-fee tax system based on the vehicle’s age and type.
Q: Are trade-ins taxed in Illinois?
A: No. You can deduct your trade-in value from the total taxable amount when buying from a licensed dealership.
Q: How do I find my county’s local vehicle tax rate?
A: Use the official Illinois tax rate database: https://tax.illinois.gov/research/taxrates.html
Q: What is the title and registration fee in Illinois?
A: As of 2024, title is $155, and standard registration is $151. Additional fees may apply for plates or transfers.
