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Illinois car sales tax at a glance
| Illinois | |
|---|---|
| Tax | retailers' occupation tax / use tax (sales tax) |
| State rate | 6.25% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 8.98% |
| Counties and cities add tax | Yes |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on all the payments, due at signing |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Illinois sales tax on a car
Multiply the taxable price by the rate. In Illinois the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6.25% = $1,562.50 at the state rate, plus any county or city tax where you register the car.
6.25% state plus local retailers' occupation taxes based on the dealer's location (home-rule and other local taxes). Private-party sales use a separate flat-amount tax (RUT-50).
Trade-ins
Full trade-in credit for dealer sales on or after Jan 1, 2022 (P.A. 102-353 removed the $10,000 cap that applied in 2020-2021).
Leasing a car in Illinois
Tax on all the payments, due at signing. Illinois: since Jan 1, 2015 (P.A. 98-628), for fixed-term leases the dealer's taxable selling price is the amount due at signing plus the total of the lease payments, taxed when the vehicle is sold for lease; Chicago residents also owe the city Personal Property Lease Transaction Tax (15% from 2026). The lease calculator uses Illinois's method when you pick the state.
Dealer doc fees
815 ILCS 375/11.1 caps the documentary fee: $300 base from Jan 1, 2020, adjusted each year by CPI.