How Much Sales Tax You Pay on a Used Car in Illinois
Curious about how much sales tax you’ll pay on a used car in Illinois? This article breaks down the rates, rules, and key details—so you can budget smart, avoid surprises, and drive away with confidence.
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If you’re planning to buy a pre-owned vehicle in the Prairie State, understanding how much sales tax you pay on a used car in Illinois is essential for a smooth transaction and a happy wallet. Illinois sales tax on used cars is determined by several factors, including the purchase price, the buyer’s county and city, and even who you buy the car from—dealer or private party. The base state sales tax rate for vehicles is 6.25%, but local taxes can bump your total higher depending on where you live. Plus, Illinois uses a unique tax table for private party sales, which means your tax bill might not match the purchase price exactly. Knowing these details in advance helps you budget accurately, avoid last-minute sticker shock at the DMV, and ensures you’re following all state rules for used car registration and title transfer. In this guide, we’ll cover Illinois used car sales tax rates, how the tax is calculated, exemptions, and tips for minimizing your costs—plus answers to the most common questions buyers have.
Illinois Used Car Sales Tax: The Basics
When you buy a used car in Illinois, you’ll pay sales tax when you register the vehicle with the Secretary of State. The amount depends on:
- Who you buy from: Dealer sales are taxed based on the purchase price; private sales use a tax table based on the car’s age and value.
- Where you live: Local county and city taxes may apply in addition to the state rate.
- Type of vehicle: Passenger cars, trucks, SUVs, and motorcycles are all taxed, but rates and exemptions can differ.
What Is the Sales Tax Rate on Used Cars in Illinois?
- State sales tax: 6.25% of the purchase price (dealer sales)
- Local taxes: Can add 0.25% to over 2% more, depending on your county or city
- Private party sales: Tax is based on a sliding scale table set by the Illinois Department of Revenue, not the actual price paid, unless the price is higher than the table value
For example, if you buy a used car from a dealer for $15,000 in Cook County, you’ll pay the 6.25% state rate plus any local taxes. If you buy from a private party, the tax is based on the car’s model year and a set value from the state’s tax table.
Illinois Private Party Used Car Sales Tax Table
Illinois uses a unique tax table for private party sales between individuals (not dealers). The tax is based on the car’s age and a set value, not necessarily the sale price. For example:
| Vehicle Age | Taxable Value (2025 Example) | Estimated Tax (6.25%) |
|---|---|---|
| 1 year or newer | $20,000 | $1,250 |
| 5 years old | $9,000 | $562.50 |
| 10+ years | $2,000 | $125 |
If the actual sale price is higher than the table value, you’ll pay tax on the higher amount.
Additional Local Taxes
Many Illinois counties and cities add their own tax rates, which can increase your total. For example, Chicago buyers pay more due to city and county add-ons. Always check your local rates before budgeting for your purchase.
Exemptions and Special Cases
- Family transfers: Transfers between certain family members (spouses, parents, children) may be exempt from sales tax.
- Gifts: If the car is a true gift, you may qualify for exemption, but documentation is required.
- Trade-ins: The value of your trade-in is not taxed; you only pay tax on the difference.
How to Pay Illinois Used Car Sales Tax
- Dealer sales: The dealer usually collects the sales tax at the time of purchase and submits it for you.
- Private sales: You pay the tax when you register the vehicle at the Secretary of State office, using Form RUT-50.
Tips for Buyers
- Use the Illinois Department of Revenue’s tax calculator or table to estimate your tax before you buy.
- Bring all paperwork (bill of sale, title, proof of residency) when registering your car.
- Budget for additional fees (registration, title, plate) on top of sales tax.
FAQs
Q: How much is sales tax on a used car in Illinois?
A: The state sales tax is 6.25%, plus any local taxes. Private sales use a tax table based on the car’s age and value.
Q: Do I pay sales tax if I buy a car from a family member in Illinois?
A: Transfers between close family members may be exempt from sales tax, but you’ll need to provide proper documentation.
Q: Who collects the sales tax when buying from a dealer?
A: The dealer collects and submits the sales tax at the time of purchase.
Q: How do I pay sales tax on a private party car purchase?
A: You pay the tax at the Secretary of State office when registering the vehicle, using Form RUT-50.
Drive smart, budget right, and enjoy your new ride!
