Illinois Vehicle Tax Overview
Illinois uses a unique vehicle tax system that varies based on the sale price and type of transaction. The state employs both a flat rate and a percentage-based system depending on the circumstances.
Tax Rates by Purchase Price
- Under $15,000: 7.25% tax rate
- $15,000-$20,000: 7.5% tax rate
- Over $20,000: 7.75% tax rate
- Private Party: Flat rate based on vehicle age
Private Sale Tax Rates
- Less than 1 year: $390
- 1-2 years: $290
- 3-4 years: $215
- 5-6 years: $165
- 7-8 years: $115
- 9-10 years: $90
- Over 10 years: $65
Additional Illinois Fees
- Title Fee: $150
- Registration Fee: $151 annually
- License Plate Fee: Varies by plate type
- Documentation Fee: Maximum $300
- EV Registration: $251 annually
Chicago-Specific Considerations
- Additional city tax may apply
- Special requirements for city stickers
- Residential parking zones
- Emissions testing requirements
Tax Exemptions
- Vehicles transferred between immediate family
- Inheritance transfers
- Qualifying nonprofit organizations
- Certain disabled veterans
- Drive-away permits for out-of-state buyers
Registration Requirements
- New Residents: 30 days to register
- Insurance: Mandatory liability coverage
- Emissions: Required in certain counties
- Documentation: Title, ID, proof of insurance
Money-Saving Tips
- Consider private party purchase for older vehicles
- Check for trade-in tax benefits
- Research dealer documentation fees
- Plan registration timing carefully