Tax on Vehicles Purchased in Illinois
- Vehicle sales tax applies to cars bought from a retail establishment as well as cars bought from a private party, according to Illinois Revenue. Even cars received by gift or donation are subject to sales tax, though there are exceptions. Tax is due within 30 days of the purchase or transfer.
- In some cases, you don't have to pay sales tax at all, points out Illinois Revenue. These include farm vehicles, vehicles purchased by religious or charity organizations for their own use, estate gifts to a surviving spouse and ready-mix concrete trucks. An out-of-state resident who bought the car in Illinois, but uses it outside of Illinois for more than three months out of the year doesn't have to pay Illinois sales tax. Cars purchased with the direct intention of donating them are also exempt, as are cars purchased during an insurance settlement.
- While the sales tax of a vehicle purchased through a dealer is determined by the purchase price, when the transaction is between two private parties its based on the vehicle's worth. If the vehicle was gifted rather than purchased, tax is still applicable. When a vehicle is worth less than $15,000, tax is based on the year the vehicle was made. For instance, a car 11 years old or older is subject to $25 in tax, while a vehicle one year old or newer is subject to $390 in tax.
- Age isn't a consideration in Illinois when a vehicle is worth more than $15,000, says Illinois Revenue. A car worth between $15,000 and $19,999.99 is subject to a tax rate of $750. A vehicle worth between $20,000 and $24,999.99 is subject to $1,000 in tax and a vehicle worth between $25,000 and $29,999.99 is subject to $1,250 in tax. All vehicles worth $30,000 or more are subject to $1,500 in tax.
