What is the car sales tax rate in Illinois?

Illinois charges a 6.25% state sales/use tax on vehicles. Many counties and home-rule municipalities add local taxes that push the combined rate to roughly 7% to 11% depending on where you register the car.

Does a trade-in lower my Illinois car sales tax?

Yes, for dealer purchases. Illinois lets you subtract the trade-in vehicle's value from the price before tax, so you only pay tax on the difference, which can save hundreds of dollars on a financed purchase.

How is tax handled on a private-party car sale in Illinois?

Private-party used-car sales use the Illinois vehicle use tax (Form RUT-50). Older or low-value cars often fall into a flat-dollar tax bracket rather than the percentage rate, so confirm with the Secretary of State.

Where is the car tax rate determined in Illinois?

The local portion is based on the buyer's home address (where the vehicle is registered), not where the dealership sits. Use your own city/county combined rate for an accurate estimate.

Are dealer documentation fees taxed in Illinois?

Illinois caps the dealer documentation fee and it is generally added to the sale, but the core sales tax is calculated on the vehicle price after the trade-in credit. Treat doc fees as a separate line item.

Illinois Car Sales Tax Calculator

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Buying a car in Illinois triggers a 6.25% state sales (or use) tax that local home-rule taxes can push much higher. The big break Illinois gives buyers is the trade-in credit, which lowers the taxable amount on dealer deals. This calculator applies both so you know what you owe before you register the vehicle.

How it works

Illinois taxes the vehicle price after subtracting a dealer trade-in, then applies your combined state-plus-local rate:

taxable price = vehicle price − trade-in value
sales tax     = taxable price × combined rate
total cost    = vehicle price + sales tax

The state base is 6.25%. Counties and home-rule cities add local sales tax, so the combined rate is set by the address where you register the car. The trade-in deduction applies to dealer purchases; private-party sales instead use the Illinois use tax (RUT-50), which may use flat-dollar brackets for older cars.

Example

A $30,000 car with a $8,000 trade-in at a combined 8.25% rate is taxed on $22,000, producing $1,815 in tax and a $31,815 all-in cost. Without the trade-in credit the tax would have been $2,475.

Notes

This estimates the percentage-based dealer scenario. Private-party purchases of older vehicles may instead owe a flat use-tax amount from the RUT-50 table, which can be lower than the percentage figure shown here.