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Car sales tax · Illinois

Illinois state sales tax on cars

Illinois state sales tax on cars is 6.25% plus local tax when you buy from a dealer, on the price after a trade-in; manufacturer rebates are still taxed. A $33,000 car with a $9,000 trade at a 1.75% local rate owes $1,920.00. Private sales pay a flat tax instead: $100 to $465 under $15,000 by age, and $850 and up above that.

Car Cost Calculator editorial teamUpdated 3 sources

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Illinois car sales tax calculator

State rules in force November 2026

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Illinois: sales taxEstimate

Tax due$1,920.005.82% of the price
Price after trade-in, with tax and fees$24,920.00before title and registration
Price$33,000.00
Rebate (still taxed)−$1,000.00
Trade-in (credited)−$9,000.00
Taxable amount$24,000.00
State sales tax (6.25% of $24,000)$1,500.00
Local tax (1.75%)$420.00
Total tax$1,920.00

The trade-in credit saves $720.00 of tax.

How it is calculated. Dealer: (price − trade-in) × (6.25% + local rate); rebates are taxed. Private: the flat RUT-50 amount from the 2026 RUT-5 chart, by vehicle age under $15,000 and by price above.

Illinois car sales tax at a dealer

Illinois uses a 6.25% state rate, with local taxes added.[2] The trade-in is credited in full: the $10,000 trade-in credit limit was removed for purchases from January 1, 2022.[3] A rebate the dealer is reimbursed for, such as a manufacturer's rebate, must be included in the selling price and is taxed.[3]

Illinois car sales tax examples
CaseTaxShare of price
$33,000 car, $9,000 trade, $1,000 rebate, 1.75% local$1,920.005.82%
$33,000 car, no trade, state rate only$2,062.506.25%
Private sale, $12,000, 4 years old$240.002.00%
Private sale, $27,000$1,350.005.00%

Private party vehicle use tax (RUT-50) for 2026

A private-party purchase is taxed with a flat amount from the Department of Revenue's chart, effective January 1 through December 31, 2026, and no trade-in deduction is allowed.[1]

Illinois RUT-50 private party tax, 2026 (RUT-5)
Price under $15,000: vehicle ageTaxPrice $15,000 or moreTax
1 year$465$15,000–$19,999$850
2 years$365$20,000–$24,999$1,100
3 years$290$25,000–$29,999$1,350
4 years$240$30,000–$49,999$1,600
5 years$190$50,000–$99,999$2,600
6 years$165$100,000–$999,999$5,100
7 years$155$1,000,000 or more$10,100
8 years$140
9 years$125
10 years$115
11 or older$100

Family transfers pay $15 and motorcycles and ATVs $25.[1]

Cook and collar countiesWhen you bring in a car bought out of state, the use tax return uses a higher combined rate in Cook County and in DuPage, Kane, Lake, McHenry and Will counties; the rate went up on August 1, 2026.

Compare states on the car sales tax calculator, include the tax in a budget with the car affordability calculator, or see the yearly total on the cost of owning a car calculator.

Frequently asked questions

What is the state sales tax on cars in Illinois?

6.25% plus local tax at a dealer, on the price after the trade-in.

How much is the tax on a private car sale in Illinois?

A flat amount from the RUT-50 chart: $100 to $465 for cars under $15,000 depending on age, and $850 to $10,100 by price above that.

Are manufacturer rebates taxed in Illinois?

Yes. Rebates the dealer is reimbursed for are included in the selling price.

Sources

  1. Private Party Vehicle Use Tax Chart for 2026 (RUT-5); RUT-25 Instructions (R-07/26); ST-9 · Illinois Department of Revenue, accessed November 14, 2026
  2. RUT-25 instructions, Vehicle Use Tax Transaction Return (R-07/26) · Illinois Department of Revenue, July 2026
  3. ST-9, Motor vehicle dealers: sales and use tax · Illinois Department of Revenue, accessed November 14, 2026