doesn’t have an excise tax on vehicles, but the state does charge registration and titling fees. Illinois also charges an excise tax on other car-related goods like gasoline and parking.

In this article, we’ll discuss the closest thing that Illinois has to an excise tax on vehicles—the excise tax that Illinois imposes on parking and fuel.

What is an excise tax in Illinois?

Excise taxes are fees on specific goods and services that are determined at the point of manufacture. Typically, these goods and services are somehow harmful to the environment or your health, like cigarettes, alcohol, and gasoline.

In Illinois, however, personal property is not legally taxable. As such, the closest thing Illinois has to an excise tax on vehicles is a car registration fee and a car title fee. While neither of these fees is called an excise tax, they essentially function as such.

While most excise taxes are paid to the Department of Revenue, Illinois' car registration and titling fees are paid directly to the Illinois Department of Transportation. Drivers are required to obtain paperwork proving that they have paid these fees (i.e.,

vehicle registration

and

certificate of title

Together, the title and registration fees for a car come out to $306, with a $155 fee for your vehicle title and a $151 fee for your registration and license plates. You’ll also pay a 7.25% sales tax, plus an additional sales tax determined by your county of residence.

Unlike some other states, though, you won’t be charged an additional tax every year once your vehicle has been titled and registered within the state of Illinois.

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While Illinois doesn’t impose an excise tax on your vehicle itself, it does have an excise tax on certain goods and services related to your vehicle, including parking and gasoline.

The parking excise tax in Illinois is 6% of the purchase price for a parking space paid for on an hourly, daily, or weekly basis. Alternatively, the tax is 9% of the purchase price for a parking space paid for on a monthly or annual basis.

This means if you have to pay for parking, you’ll also have to pay an additional fee to the state based on the value of the service you are using. If you’re renting your parking space in Illinois, prepare to fork over a little extra cash to cover this tax.

The gas excise tax in Illinois is currently $0.559 per gallon for regular and E80 fuel. If you drive a vehicle that requires another type of fuel, you can expect to pay $0.627 per gallon for diesel fuel or $0.617 per diesel gallon equivalent (DGE) for liquefied petroleum gas (LPG). This cost is factored into the price of gasoline at the gas station, so there's no need to worry about paying the tax separately.

Calculating your excise tax payment

Since Illinois doesn’t charge an excise tax on vehicles, your excise tax is always calculated at the point of purchase for the goods and services that require it.

Penalties for nonpayment

There are no immediate penalties for not paying your car title and registration fees—that is until you get pulled over.

Without paying the titling and registration fees, you won’t be able to obtain proper documentation for your vehicle, including a license plate. This may cost you a fine of at least $90 and up to $2,500.

It’s even possible that you can be arrested for driving a vehicle without a title or registration, and your car can easily be taken away from you in these instances since you have no legal documentation of ownership.

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How to avoid excise tax in Illinois

Unfortunately, it’s pretty difficult to avoid the excise taxes in Illinois because they are built into the prices of the goods and services you need to own and operate your vehicle.

You can avoid a parking excise tax by using your driveway or lot to store your vehicle or by parking in public lots whenever possible.

Exemptions from the fuel excise tax may be provided to recreational vehicles, school buses, and any state or federal vehicles that need to fill up while in the state of Illinois. Otherwise, you’ll have to pay that extra 60 cents per gallon on your gas.

As for titling and registration fees, you’ll find that it’s essentially impossible to avoid these ownership costs if you want to drive your vehicle legally.

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Your guide to saving on Illinois car insurance

While you may not be able to save much money on Illinois excise taxes, you can save money on your Illinois car insurance instead. Don’t worry, it’s easy! Just use

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