New residents must pay the sales tax to the dealer at the time of purchase and then register the vehicle to obtain license plates. Title and Registration Process After the sales tax is collected, the dealer or seller provides a certificate of title that reflects the transaction.
Understanding Illinois Secretary of State Car Registration Tax Requirements
This ensures that the tax reflects the true transaction value and prevents undervaluation to reduce tax liability. 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.
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. The state applies a standard sales tax rate to the purchase price or the fair market value of the car, whichever is higher.
Understanding Secretary of State Car Registration Tax in Illinois
When you finalize the purchase of a new or used vehicle in Illinois, the sticker price is only part of the financial picture. The sales tax is a one-time levy applied at the point of purchase, while registration fees are recurring costs paid to the Illinois Secretary of State to keep the vehicle legal on the road.
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