Buying a used car · Elgin Auto Sales & Service Center · Elgin, IL
Illinois Used Car Sales Tax
How much tax you pay on a used car in Illinois depends first on who sells it to you. A registered dealer collects sales tax based on the selling price; a private sale is taxed with a flat amount from the state's RUT-50 tables. This guide explains both, using the Illinois Department of Revenue's own forms and instructions.
Form ST-556dealer sale: filed by the dealer
Form RUT-50private-party sale: filed by the buyer
$15,000price that splits RUT-50 Table A and Table B
30 daysRUT-50 due date after purchase
The short answer
If you buy from a registered Illinois dealer, the dealer reports the sale on Form ST-556 and collects tax on the selling price after any qualified trade-in, at the tax rate for its location. If you buy from a private seller, you file Form RUT-50 when you title the car and pay a flat tax from IDOR's tables: by vehicle age if the price is under $15,000, or by price band if it is $15,000 or more.
Dealer sale or private sale: which tax applies
| Who sells you the car | Tax form | Who files it | When it is due |
|---|---|---|---|
| Registered Illinois dealer | ST-556, Sales Tax Transaction Return | Generally the dealer, with your title paperwork | 20 days after delivery |
| Private party (another individual) | RUT-50, Private Party Vehicle Use Tax Transaction Return | You, the buyer, when you apply for title | 30 days after purchase |
| Unregistered out-of-state retailer | RUT-25, Vehicle Use Tax Transaction Return | You, the buyer | 30 days after bringing it into Illinois |
From Vehicle Taxes FAQs (Illinois Department of Revenue) and Private Party Vehicle Use Tax (Illinois Department of Revenue), read November 3, 2026.
Buying a used car from an Illinois dealer
IDOR says sales of motor vehicles by registered Illinois dealers are taxed under the Retailers' Occupation Tax Act, and the purchase is reported on Form ST-556, which the dealer generally completes and files along with the title forms for you.
- The tax is figured on the selling price minus any qualified trade-in. A qualified trade-in is an item the buyer gives the dealer to reduce the selling price.
- The dealer multiplies that amount by the tax rate printed on its return for its business location, so it is the rate for the dealer's location.
- Trade-in credit limit: a $10,000 cap on trade-in credit for a first division motor vehicle applied only to sales from January 1, 2020, through December 31, 2021. IDOR's instructions say the limit no longer applies to sales on or after January 1, 2022.
- If your home address is in Cook, DuPage, Kane, Lake, McHenry, Will, Madison or St. Clair County and the vehicle will be titled in an area with a regional transit tax, you may owe additional tax. If the dealer is inside the Regional Transportation Authority or Metro-East Transit District area, that tax is already in its combined rate; a dealer outside those areas may collect it for you, or you may be billed for it later. Dealers in the six Chicago-area counties also collect an extra 1.25 percent Chicago Home Rule Use Tax when the buyer's address is in Chicago.
From Private Party Vehicle Use Tax (Illinois Department of Revenue), Vehicle Taxes FAQs (Illinois Department of Revenue) and Form ST-556 Instructions, Sales Tax Transaction Return (Illinois Department of Revenue) (Sections 4 and 6, Lines 1-5), read November 3, 2026.
Buying a used car from a private seller
When you buy from another individual, IDOR imposes the Private Party Vehicle Use Tax. You report it on Form RUT-50, which is due within 30 days of the purchase. IDOR says the form and any tax due are submitted to the Office of the Secretary of State when you apply for title.
- The purchase price or fair market value decides which table you use. With no stated price, as with a gift or an even trade, fair market value is used.
- A trade-in deduction is not allowed on Form RUT-50.
- If you file electronically through MyTax Illinois, the tax is calculated for you.
From Private Party Vehicle Use Tax (Illinois Department of Revenue), Vehicle Taxes FAQs (Illinois Department of Revenue) and Form RUT-50 Instructions, Private Party Vehicle Use Tax Transaction Return (Illinois Department of Revenue), read November 3, 2026.
RUT-50 private party tax tables
Table A applies when the price or fair market value is under $15,000 and goes by vehicle age (the year of the title application minus the vehicle's model year). Table B applies at $15,000 or more and goes by price.
| Table A: vehicle age | Tax due | Table B: price or fair market value | Tax due |
|---|---|---|---|
| 1 year or less | $465 | $15,000 to $19,999.99 | $850 |
| 2 years | $365 | $20,000 to $24,999.99 | $1,100 |
| 3 years | $290 | $25,000 to $29,999.99 | $1,350 |
| 4 years | $240 | $30,000 to $49,999.99 | $1,600 |
| 5 years | $190 | $50,000 to $99,999.99 | $2,600 |
| 6 years | $165 | $100,000 to $999,999.99 | $5,100 |
| 7 years | $155 | $1,000,000 or more | $10,100 |
| 8 years | $140 | ||
| 9 years | $125 | ||
| 10 years | $115 | ||
| 11 years or more | $100 |
From Form RUT-50 Instructions, Private Party Vehicle Use Tax Transaction Return (Illinois Department of Revenue), read November 3, 2026. IDOR's own example: a title application in 2026 for a 2023 vehicle is a vehicle age of 3. Check the current instructions before you file.
Family transfers and other exceptions
Close family: $15
A vehicle transferred or purchased from a spouse (including a civil union partner), parent, brother, sister or child, including adopted children, has a $15 tax. Step-relations, in-laws and grandparents or grandchildren do not qualify.
Estate gifts: $15
A vehicle given from an estate to a beneficiary other than a surviving spouse also has a $15 tax.
Motorcycles and ATVs: $25
Motorcycles, motor-driven cycles, ATVs and motorized pedalcycles have a $25 tax.
Exemptions: $0
Some transfers are exempt, such as purchases by qualifying organizations with an IDOR exemption number, or an item a former out-of-state resident used outside Illinois for at least 3 months.
From Form RUT-50 Instructions, Private Party Vehicle Use Tax Transaction Return (Illinois Department of Revenue) (Step 4), read November 3, 2026. Each exception has conditions; read the full instructions.
Chicago and Cook County
IDOR notes that buyers who live within the corporate limits of the City of Chicago or in Cook County may owe an additional private party vehicle use tax to those jurisdictions. Its RUT-6 reference guide lists the current local rates, so check whether your own address falls in either area.
From Vehicle Taxes FAQs (Illinois Department of Revenue) and Form RUT-50 Instructions, Private Party Vehicle Use Tax Transaction Return (Illinois Department of Revenue) (Step 6), read November 3, 2026.
Shopping for a used car at Elgin Auto Sales & Service Center
Browse our used inventory, get a value for your current car with our trade-in form, or read our guide to financing a used car. Questions? Contact us.
Elgin Auto Sales & Service Center is at 1200 E. Chicago St. in Elgin. Our sales department is open Monday to Friday 9 a.m. to 7 p.m. and Saturday 9 a.m. to 6 p.m., and is closed Sunday. Get directions.
This page is general information from the Illinois Department of Revenue's published forms and instructions, not tax advice. Tax rules and rates change; check with IDOR or a tax professional for your situation.
Illinois used car tax FAQ
Do you pay sales tax on a used car in Illinois?
Yes. A used car bought from a registered Illinois dealer is taxed on the selling price and reported on Form ST-556. A used car bought from a private seller is taxed with a flat amount from IDOR's RUT-50 tables.
How much is the tax on a private-party car sale in Illinois?
It depends on the price. Under $15,000, the tax is set by vehicle age, from $465 for a vehicle 1 year old or less down to $100 for 11 years or more. At $15,000 or more, it is set by price band, starting at $850 for $15,000 to $19,999.99.
Does a trade-in lower the tax?
At a dealer, the tax is figured on the selling price minus a qualified trade-in, and IDOR says the $10,000 trade-in credit limit no longer applies to sales on or after January 1, 2022. On a private-party RUT-50, a trade-in deduction is not allowed.
When is Form RUT-50 due?
Within 30 days of the purchase. It is submitted with your title application to the Illinois Secretary of State.
Is there tax if my parent gives me a car?
IDOR's RUT-50 instructions list a $15 tax for a vehicle transferred or purchased from a spouse, parent, brother, sister or child.
Who files the tax form when I buy from a dealer?
IDOR says a registered Illinois dealer generally completes and files Form ST-556 along with the required title forms for you.
Shopping for a used car?
Visit us at 1200 E. Chicago St. in Elgin, or browse our used inventory online.
Sources
Tax forms, due dates, tables, trade-in rules and exceptions are from the Illinois Department of Revenue's published instructions and FAQs, read on November 3, 2026. This is general information, not tax advice; rules and amounts can change. Our address and hours are from our own website, checked the same day. Photo is of our dealership.
- Form RUT-50 Instructions, Private Party Vehicle Use Tax Transaction Return (Illinois Department of Revenue), Illinois Department of Revenue
- Private Party Vehicle Use Tax (Illinois Department of Revenue), Illinois Department of Revenue
- Vehicle Taxes FAQs (Illinois Department of Revenue), Illinois Department of Revenue
- Form ST-556 Instructions, Sales Tax Transaction Return (Illinois Department of Revenue), Illinois Department of Revenue
- Home page: address and sales hours, Elgin Auto Sales & Service Center