This rate is applied to the total amount paid for the vehicle, which can include the purchase price, dealer fees, and any other charges related to the transfer of ownership. Non-Residents: If you are moving to Illinois and bring a car you already own, you will be required to pay the use tax, which is equivalent to the sales tax, upon registration.
How to Lower Your Illinois Car Tax with Trade-Ins and Avoid Overpaying
Dealer Plates: Vehicles purchased with dealer license plates are often subject to different tax rules, and the tax may be deferred or handled differently upon final sale. Trade-Ins and Tax Savings One significant factor that can lower the overall Illinois sales tax on cars is the trade-in credit.
Certain types of vehicles or buyers may qualify for relief based on the nature of the transaction or the status of the purchaser. If you are purchasing a new or used car and trading in an older vehicle, the value of the trade-in is subtracted from the purchase price before the tax is calculated.
How to Lower Your Illinois Car Tax with Trade-Ins
Title and Registration Process After the sales tax is collected, the dealer or seller provides a certificate of title that reflects the transaction. If you are selling your old vehicle privately, you will pay tax on the full purchase price of the new car without any credit.
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