, you may already be familiar with tax form RUT-50 for private party vehicle use tax. This form only applies to people buying cars from private sellers.
RUT-50 is a form filed for private party vehicle sales that’s required when you
A RUT-50 form isn’t necessary if you’re buying a new or used motor vehicle from a dealership. This uses a different tax form, RUT-25.
Private party vehicle use tax amounts are tiered based on the vehicle’s market value.
Tax for vehicles with a market value under $15,000 will be calculated based on the car’s age.
What is tax form RUT-50?
Tax form RUT-50 is an automotive tax form in the state of Illinois. It is known as the Private Party Vehicle Use Tax, which means that it taxes you for a vehicle purchase from a private party as opposed to a dealer or lender.
Depending on the circumstances, this tax may also apply to gifted or inherited vehicles.
Who needs to file Illinois tax form RUT-50?
Anyone who lives in Illinois with a car that was acquired from a private party needs to file a tax form RUT-50. That means that if you buy a car from a private seller, are given a car as a gift, or otherwise acquire a car from a private party, you have to file tax form RUT-50.
Similarly, if you move to Illinois and bring with you a car that was acquired in such a manner, you also have to file a RUT-50.
Key Takeaway: Form RUT-50 is required in Illinois for any car purchased from a private seller, even if you buy a car privately out of state and move to Illinois.
How much tax will you pay with a RUT-50?
Private party vehicle use tax is different from regular use tax or sales tax rates.
In Illinois, your private party vehicle use tax rate depends on the cost of the car, and in some cases, its age. When filing a RUT-50, you have to determine the purchase price or the fair market value.
According to the Illinois Department of Revenue, the selling price is used as a default, but if there’s no sales price (such as if the vehicle was given as a gift), its market value will be used.
As of 2021, these were the tax rates for different vehicle values:
Between $15,000 and $19,999.99: Tax of $750
Between $20,000 and $24,999.99: Tax of $1,000
Between $25,000 and $29,999.99: Tax of $1,250
$30,000 or more: Tax of $1,500
If the market value was less than $15,000: The tax due is based on the age of the car, ranging from $390 for a new car to $25 for a car 11 years or older.
For motorcycles and all-terrain vehicles (ATVs): A flat rate of $25 applies.
For purchases or gifts to eligible family members or beneficiaries: A flat rate of $15 applies.
Key Takeaway: The amount of tax you pay on a car depends on its market value, as well as the amount you paid for it.
When is tax form RUT-50 due?
If you live in Illinois and purchase a car, the RUT-50 tax form and your tax payment are due within 30 days of the purchase.
If you’re moving to Illinois with a car you purchased prior to your move, the RUT-50 tax form is due within 30 days of your move.
Where should a RUT-50 tax form be sent?
A RUT-50 tax form should be sent to the following address:
Office of Illinois Secretary of State Vehicle Services Department Howlett BLDG Springfield, IL 62756
Are there RUT-50 tax exemptions?
Under the following circumstances, no tax related to the RUT-50 form is owed:
The buyer is an out-of-state resident and the vehicle has been used outside the state for at least three months
The vehicle was an estate gift to a surviving spouse
The buyer is a tax-exempt organization
The vehicle is intended for and will be primarily used for agricultural purposes
A RUT-50 and a RUT-25 differ in how a car was acquired. While RUT-50 is for cars acquired from private parties, a RUT-25 should be filed for any car acquired from a dealer, lender, or leasing institution.
If you’re an Illinois resident with a car acquired via a private party, be sure to follow the law and file a tax form RUT-50.
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