New residents must pay the sales tax to the dealer at the time of purchase and then register the vehicle to obtain license plates. During this process, the state verifies the sales tax payment and issues the official registration, which is required to drive legally in Illinois.
How to Calculate Illinois Car Sales Tax: A Step-by-Step Guide
Sales Tax It is important to distinguish between the sales tax and the registration fees when buying a car in Illinois. This ensures that the tax reflects the true transaction value and prevents undervaluation to reduce tax liability.
To finalize the process, the new owner must visit a Secretary of State facility or use a mail-in option to register the vehicle. Documenting the Trade To apply the trade-in credit, the dealer must document the trade-in value on the bill of sale.
How to Calculate Illinois Car Sales Tax with Trade-in and Fees
Commercial Vehicles: Trucks and buses used for commercial purposes may be classified differently and taxed according to specific weight and usage criteria. 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.
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