Car Sales Tax in Illinois
In Illinois, the average combined state and county sales tax on car purchases is 8.154%.
Written by Tiffany Leung
Reviewed by Jessica Barrett
All car sales in Illinois are subject to a state sales tax rate of 6.25%. However, the total tax rate is dependent on your county and local taxes, which can be up to 11.5%. On average, the total Illinois car sales tax is 8.154%.
If you want to stay within budget, checking the ticket price of the car you’re shopping for isn’t enough. There are additional costs that can push you over budget if they aren’t accounted for—including
Illinois car insurance
costs, registering your vehicle, and purchasing license plates. Moreover, you should pay attention to the sales tax, which varies depending on where you purchase the car.Illinois car sales tax rates rank quite high across the country. To figure out how much your car will actually cost, you will need the exact rate in your area or county. Fortunately, the
car insurance
super app, Jerry
, created a guide on car sales taxes in Illinois. Make auto loan refinancing easy with PriceProtect™
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversHow much is the car sales tax rate in Illinois?
The statewide sales tax in Illinois is 6.25% and is applied to any car purchase, regardless of whether it’s new or used. You will also need to take into account the county or local sales tax.
The highest combined sales tax rate for car purchases is in Cook County, with an 11.5% rate in the city of Harvey. Among the 112 local tax jurisdictions across the state, the sales tax averages around 8.154%. The lowest sales tax in the state—7.25%—can be found in Putnam, Marshall, Crawford, and Henderson counties.
How are car trade-ins taxed in Illinois?
Many dealers will allow you to
trade in an old vehicle
so that you can use the credit towards purchasing a new car. In Illinois, the car sales tax only applies to the final ticket cost of your car, as the value of your trade-in is not subject to taxes. For example, you’re buying a
Hyundai Veloster
worth $23,000 in Chicago
, and you’re trading in your old Audi A4 Premium
for a $6,500 credit. You’ll only have to pay Cook County’s 11.5% combined state and local sales tax on $16,500 of the purchase. However, if you receive dealer rebates and incentives, they are not exempt from sales tax. In other words, the sales tax will still be applied to the full price of the vehicle before dealer incentives.
How to calculate sales tax on a car in Illinois
You can calculate the total car sales tax in your area by using the online tax calculator tool on the Sales Tax Handbook website. You can get an estimate of the sales tax rate that will apply to your car purchase based on your purchase location ZIP code and purchase amount.
Key Takeaway You can combine the 6.25% statewide sales tax with your local or county sales tax to calculate the total car sales tax in your area or use the sales tax calculator.
Exemptions from Illinois car sales tax
Although all Illinois State car purchases are subject to sales tax, they are exempted if one of the following applies to you:
- You are a tax-exempt organization
- You are an out-of-state resident and the vehicle was used outside of Illinois for at least three months
- The vehicle is used for rolling stock
- The vehicle is a farm implement primarily used in production agriculture
- The vehicle is a ready-mix concrete truck that qualifies under the manufacturing machinery and equipment exemption
- The vehicle is an estate gift to a surviving spouse (including a party to a civil union)
For more details on available sales tax exemptions, refer to the
Private Party Vehicle Use Tax Chart
provided by the Illinois Department of Revenue. You can apply for the exemptions on My Tax Illinois
. MORE: Car inspection in Illinois
How to estimate Illinois tax, title, and registration fees
Aside from the sales tax, you’ll also need to consider other factors that affect your total cost. For example, the title and registration fees, the cost to transfer your license plates, and the documentation fee charged by most dealerships.
Here’s how all the additional costs associated with car purchases in Illinois break down:
Cost | Average cost |
|---|---|
Sales tax | 8.154% |
Registration fee | $301 |
Title fee | $155 |
Plate transfer | $29 |
Documentation fee | $324.24 max |
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversMORE: Is car insurance tax deductible?
How to find affordable car insurance in Illinois
After you pay all the taxes and fees, you’ll also need to factor in the cost of
car insurance
for your new car! Illinois has high insurance rates but the Jerry
app can help you find the best deals. Jerry is the easiest and most effective way to find a car insurance policy that is customized for you. After providing you with a comprehensive cross-analysis of the best policies across 50+ top providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They can even help cancel your old policy!
So why do all that extra work when Jerry can find you better policies with average savings of $887 per year?
“I just financed a new car and knew my insurance premium was going to rise.Jerrywas well worth it to use. They helped me find a lower premium and canceled my old policy instantly when I was ready to switch!” —Meghana D.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversFAQ
How much is sales tax on a used car in Illinois?
The sales tax for used and new cars in Illinois is the same—it’s the statewide base rate of 6.25% plus your local or county tax rate.
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