Used Car Taxes In Illinois

The state currently collects no sales tax on a cars trade-in value which acts as credit toward a new vehicle purchase. For example sales tax in Naperville is 775 and 875 in Joliet.

Illinois Sales Tax Credit Cap Important Information

Unless of course you reside in those Metro-East communities with a 65 tax on vehicle sales.

Used car taxes in illinois. Oak Brook Sales Tax. Illinois private party vehicle use tax is based on the purchase price or fair market value of the motor vehicle with exceptions noted on the right ie for motorcycles and specific situations. As of July 1 2015 the Use Tax on Non-Retailer Transfers of Motor Vehicles is collected by the State of Illinois on behalf of the Cook County Department of Revenue at the time of registration.

The state sales tax on vehicles is 625 but local taxes are added as well. 10 lien processing fee. Illinois collects a 725 state sales tax rate on the purchase of all vehicles.

You should attach a copy of the bill of sale as proof of the purchase price. Excise tax of 325 for a new vehicle. Fees for trucks motorcycles and other vehicles will differ.

Purchasing a Used Car From a Private Party in Illinois. The Taxes on Buying a Used Car in Illinois Purchasing a Used Car From a Dealer in Illinois. A new law titled Leveling the Playing Field for Illinois Retail Act will apply Illinois sales tax to the value of vehicle trade-ins over 10000 rather than having car buyers pay sales tax on.

15 rows Illinois tax on new and used vehicles is generally 625 but can vary by location. The appropriate tax form. In addition there is a flat rate of 25 for purchases of motorcycles and all-terrain vehicles ATVs and 15 for purchases from certain family members gifts to beneficiaries not surviving spouses and transfers in a business reorganization if the beneficial ownership has not changed.

The amount that you have to pay for your Illinois used car sales tax or your Illinois new car sales tax depends on what city you live in. 10 in Medford 21 in Portland. By law sales tax only applies to the difference between trade-in value.

New and used vehicle dealers in Illinois are required to charge a. 05 privilege tax on new vehicle purchases. When an Illinois resident purchases a vehicle from an out-of-state dealer and will title the car in Illinois the sale and subsequent tax due is reported on Form RUT-25 when you bring the vehicle into Illinois.

Example 2 A motor vehicle retailer sells a new car for 40000 and allows 30000 for the trade in of a pickup truck. 2450 6 to transfer. 98-113 depending on model year and MPG.

151 for passenger vehicle registration. The selling price used to calculate the tax due is 30000 ie 40000 10000. Individuals in Illinois must pay a vehicle tax when they.

50 for the title. For used cars 20 on the 1st 1500 of value 325 of the remainder. In addition to state and county tax the City of Chicago has a 125 sales tax.

See Paperwork for Illinois Car Buyers above for tax form options. Thats 2025 per 1000. There is also between a 025 and 075 when it comes to county tax.

How it adds up So if you were buying a 35000 car and getting 15000 for a trade-in it will cost you an extra 500. Vehicle the credit that the retailer may take on the return for the traded-in sport utility vehicle is 10000. Applicable sales tax and use tax.

Payment for fees and taxes. Illinois Department of. Additionally sales tax varies from city to city in Illinois.

The state sales tax on vehicles is currently 625 but if youre trading in a car you will also have to account for local taxes into account on the taxable total. Since the Missouri tax appears to be 4225 and the standard Illinois tax on vehicle sales is 625 you must pay the 2025 difference. The tax rate of 25 applies under the following circumstances.

122-152 depending on model year and MPG. For most purchases you will use Table A or B to determine the tax amount. Whether the car is purchased used or new.

Then the difference is 2275. If the vehicle purchase price is 15000 or more the tax is based on the purchase price. Use Table B.

The purchase price of a vehicle is the value given whether received in money.

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