The fee for a first-time registration or renewal in Illinois is $101.
If you are also titling a car you just bought, the title fee is $95.
You’ll also need to pay sales tax, which varies depending on where you live in Illinois.
But expect to pay between 6.5 and 7.5 percent of what you paid for the vehicle.
- 1 What is tax on a car in Illinois?
- 2 What is the car sales tax in Chicago?
- 3 Do you pay sales tax on a used car in Illinois?
- 4 How much is tax on a car in Illinois?
- 5 How much is sales tax on a used vehicle in Illinois?
- 6 How is sales tax calculated on a car lease in Illinois?
- 7 Do you pay taxes on a gifted car in Illinois?
- 8 Do you pay tax when buying a car privately?
What is tax on a car in Illinois?
The tax is based on the city where the car buyer lives. The least a buyer can pay is 6.25%. Chicago car buyers pay 9.5% in sales taxes, which would add an additional $950 to that $20,000 trade-in. “This is a huge concern for us,” said Pete Sander, president of the Illinois Automobile Dealers Association.
What is the car sales tax in Chicago?
The sales tax in Chicago is 8.75 percent; in Cook County outside of Chicago, it’s 7.75 percent; in DuPage County, it’s 6.75 percent, and in Lake, Will, Kane and McHenry Counties, it’s 6.5 percent. It appears painfully obvious where you should or shouldn’t be buying a new vehicle.
Do you pay sales tax on a used car in Illinois?
The state collects no sales tax on trade-in value, but that changes next year. The state currently collects no sales tax on a car’s trade-in value, which acts as credit toward a new vehicle purchase. By law, sales tax only applies to the difference between trade-in value and the new vehicle’s purchase price.
How much is tax on a car in Illinois?
Illinois collects a 7.25% state sales tax rate on the purchase of all vehicles. There is also between a 0.25% and 0.75% when it comes to county tax. In addition to state and county tax, the City of Chicago has a 1.25% sales tax. There also may be a documentary fee of 166 dollars at some dealerships.
How much is sales tax on a used vehicle in Illinois?
Cars bought from dealers are taxed at the basic 6.25% Illinois sales tax rate, plus any local taxes. That’s applied to the purchase price of the vehicle. The dealer is supposed to collect the tax from the buyer, and pay it to the Department of Revenue. Transfers between private parties are taxed at a different “rate.”
How is sales tax calculated on a car lease in Illinois?
Currently, Illinois taxes the entire capitalized cost of the vehicle (the negotiated “price” in the lease agreement) – even though it’s a long-term rental, not a purchase. For a suburban Cook County resident who leases a $30,000 car, the 8.25 percent vehicle sales tax would be $2,475.
Do you pay taxes on a gifted car in Illinois?
If you are leasing the vehicle from an unregistered out-of-state retailer, you must use Form RUT-25-LSE to report the transaction. If you originally purchased (or acquired by gift or transfer) your vehicle from an individual or other private party, you must use Form RUT-50 when you bring the vehicle into Illinois.
Do you pay tax when buying a car privately?
Yes, you must pay sales tax when you buy a used car if you live in a state that has sales tax. However, you do not pay that tax to the individual selling the car. You will pay it to your state’s DMV when you register the vehicle.
Photo in the article by “Flickr”