How car sales tax works in Illinois
When you buy from an Illinois dealer you pay 6.25% state tax plus the local rate of the dealer's location. If you live in the City of Chicago and buy from a dealer in Cook, DuPage, Kane, Lake, McHenry or Will County, the dealer adds a 1.25% Chicago Home Rule Use Tax.
- Trade-in credit: subtracted before tax, with no cap since January 1, 2022.
- The doc fee is taxable, and so are rebates the manufacturer pays the dealer. A rebate paid to you directly is not subtracted.
- Private sales use a flat tax from Form RUT-50, based on the car's age (under $15,000) or its price ($15,000 and up). No trade-in credit.
- Family: $15 for a car bought from or given by your spouse, parent, brother, sister or child.
- New residents: no Illinois tax if you used the car outside Illinois for at least 3 months before moving.
Private-party tax (RUT-50), price under $15,000
| Vehicle age | Tax |
|---|---|
| 1 or less | $465 |
| 2 | $365 |
| 3 | $290 |
| 4 | $240 |
| 5 | $190 |
| 6 | $165 |
| 7 | $155 |
| 8 | $140 |
| 9 | $125 |
| 10 | $115 |
| 11 or more | $100 |
Private-party tax (RUT-50), price $15,000 or more
| Price or fair market value | Tax |
|---|---|
| $15,000 - $19,999.99 | $850 |
| $20,000 - $24,999.99 | $1,100 |
| $25,000 - $29,999.99 | $1,350 |
| $30,000 - $49,999.99 | $1,600 |
| $50,000 - $99,999.99 | $2,600 |
| $100,000 - $999,999.99 | $5,100 |
| $1,000,000 or more | $10,100 |
Title and registration fees in Illinois
| Fee | Amount |
|---|---|
| Certificate of title | $165 |
| Passenger registration (annual) | $151 |
| Electric vehicle surcharge (annual) | + $100 |
| Doc fee limit, 2026 (reported) | $377.63 |
A standard car pays $316 at first registration ($165 title plus $151 plates). Electric cars pay $251 a year for registration.
Example: a $32,000 new car
Price $32,000.00, $1,000.00 manufacturer rebate, $8,000.00 trade-in and a $377.63 doc fee, bought from a dealer:
| Sales tax (Retailers' Occupation Tax) (6.25%) | $1,523.60 |
| Local tax (2.5%) | ≈ $609.44 |
| Title fee | $165.00 |
| Registration fee | $151.00 |
| Total taxes | $2,133.04 |
|---|---|
| Total government fees | $316.00 |
| Out-the-door price | $33,826.67 |
| After the trade-in, you pay | $25,826.67 |
Common mistakes
- Applying a percentage tax to a private-party purchase: Illinois uses the flat RUT-50 table.
- Using the tax rate of your home instead of the dealer's location (Chicago buyers may owe an extra 1.25%).
- Paying a doc fee above the yearly limit (reported at $377.63 for 2026); the doc fee is also taxed.
Add this calculator to your website
Dealers, credit unions, driving schools and bloggers can embed the Illinois calculator for free. Paste this code where you want it to appear. It stays up to date automatically.