Illinois Used Car 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.
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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 |
| ||
| 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:
| |
| 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