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State Guide Last verified September 17, 2026

Illinois Car Sales Tax, Trade-In Credit, and Out-of-State Rules

What the desk and the buyer each need to know when an Illinois deal crosses state lines: the rate, the trade-in math, the exemption paperwork, and the drive-home tags. Every fact links to the official source.

Check an Out-of-State Deal Jump to Quick Facts

Every fact sourced to Illinois official publications below

Short answer

Illinois taxes vehicle sales at 6.25% state plus local add-ons (depends on the dealer's location). Illinois taxes the price after the trade-in is deducted. Illinois exempts out-of-state buyers only under specific conditions. Illinois credits sales tax legally paid to another state, so the same dollars are not taxed twice. Everything here assumes a retail purchase from a dealer, since most states treat leases and private-party sales differently.

Illinois car sales tax quick facts

Last verified September 17, 2026
Sales tax rate on vehicles6.25% state plus local add-ons (depends on the dealer's location)[1]
Trade-in creditIllinois taxes the price after the trade-in is deducted. Applies to qualified trade-ins (items the dealer is in the business of selling); the $10,000 cap on first division motor vehicles applied only to 2020-2021 sales and was removed effective January 1, 2022.[2]
Selling to an out-of-state buyerIllinois exempts out-of-state buyers only under specific conditions. Exempt only for buyers from reciprocal states, when the buyer takes possession in Illinois with a dealer-issued drive-away permit or out-of-state plates transferred to the vehicle, and the buyer certifies nonresidency on Form ST-588. Buyers from the eight non-reciprocal states on the April 2026 ST-58 chart (AZ, CA, FL, HI, IN, MA, MI, SC) are charged Illinois tax at the chart rate for their home state (e.g., FL 6.00%, CA 6.25%, SC 5.00% up to a $500 maximum).[3]
Credit for tax paid to another stateIllinois credits sales tax legally paid to another state, so the same dollars are not taxed twice.[4]
Dealer doc feeCapped[5] · taxable[2]
Temp tag for the drive homeAn out-of-state buyer taking delivery at an Illinois dealer drives home on a dealer-issued 30-day drive-away permit, or on current out-of-state plates transferred to the vehicle. Illinois temporary registration permits (TRPs) and 7-day drive-away permits may only be issued to Illinois residents. The drive-away permit number, or the plate number plus two-letter state abbreviation, must be entered on Form ST-556 for the nonresident exemption to hold.[6]
Out-of-state buyer registrationA vehicle bought from an out-of-state dealer and then titled or registered in Illinois is reported on Form RUT-25, with use tax keyed to the purchaser's Illinois address and due within 30 days of bringing the vehicle into Illinois; an individual who used the vehicle outside Illinois at least three months qualifies for a use tax exemption but still files for the title.[4]

Illinois car sales tax calculator

Enter the sale price and any trade-in to estimate Illinois vehicle tax and the out-the-door total before title and registration. It applies the verified rate, trade-in rule and doc fee treatment from the quick facts above.

General information, not tax or legal advice. Everything on this page was compiled from official Illinois government publications (listed under Sources) and last verified September 17, 2026, but rates and rules change and errors are possible. Voltra makes no warranty as to accuracy or completeness and accepts no liability for decisions made on this data. Confirm the current rules with the Illinois Department of Revenue or a licensed professional before acting on anything here. Covers retail dealer sales; leases and private-party sales follow different rules in most states.

From the desk

Illinois publishes an actual non-reciprocal chart, the ST-58, listing the states it refuses to play nice with. Every biller working border deals should have it printed, because the credit rules change by the buyer's home state.

Selling to an out-of-state buyer in Illinois

Illinois exempts out-of-state buyers only under specific conditions. Exempt only for buyers from reciprocal states, when the buyer takes possession in Illinois with a dealer-issued drive-away permit or out-of-state plates transferred to the vehicle, and the buyer certifies nonresidency on Form ST-588. Buyers from the eight non-reciprocal states on the April 2026 ST-58 chart (AZ, CA, FL, HI, IN, MA, MI, SC) are charged Illinois tax at the chart rate for their home state (e.g., FL 6.00%, CA 6.25%, SC 5.00% up to a $500 maximum).[3]

On paper that means Form ST-588, filled out at delivery. If the form never gets signed, the dealer eats the tax, not the buyer.

The tax question gets settled at the desk; the follow-through does not. Titles, temp tags, and out-of-state registrations sit in flight for weeks, so somebody has to watch the dates.

Buying in Illinois from out of state

If you live in another state and buy in Illinois, the deciding rule is where the vehicle gets registered: your home state's tax applies at registration, and what happens at the Illinois sale depends on the rule above. Illinois credits sales tax legally paid to another state, so the same dollars are not taxed twice.[4]

Registration and temp tags

An out-of-state buyer taking delivery at an Illinois dealer drives home on a dealer-issued 30-day drive-away permit, or on current out-of-state plates transferred to the vehicle. Illinois temporary registration permits (TRPs) and 7-day drive-away permits may only be issued to Illinois residents. The drive-away permit number, or the plate number plus two-letter state abbreviation, must be entered on Form ST-556 for the nonresident exemption to hold.[6] A vehicle bought from an out-of-state dealer and then titled or registered in Illinois is reported on Form RUT-25, with use tax keyed to the purchaser's Illinois address and due within 30 days of bringing the vehicle into Illinois; an individual who used the vehicle outside Illinois at least three months qualifies for a use tax exemption but still files for the title.[4]

Bordering states

Cross-border deals from Illinois most often involve Indiana, Iowa, Kentucky, Missouri and Wisconsin. Each combination carries its own quirks; run the pair through the out-of-state checker.

Vehicle-type exceptions

The nonresident drive-away exemption covers motor vehicles and trailers only: watercraft, aircraft, manufactured (mobile) homes, and ATVs cannot be issued drive-away permits and are taxable when a nonresident takes possession in Illinois. Aircraft use a separate fly-away exemption.[3]

Sources

  1. tax.illinois.gov/questionsandanswers/answer.139.html · verified 2026-08-23
  2. tax.illinois.gov/…/st-9.pdf · verified 2026-08-23
  3. tax.illinois.gov/…/st-58.pdf · verified 2026-08-23
  4. tax.illinois.gov/…/rut-25-instr.pdf · verified 2026-08-23
  5. www.ilga.gov/…/081503750K11.1.htm · verified 2026-09-17
  6. www.ilga.gov/commission/jcar/admincode/092/092010100e04210r.html · verified 2026-08-29
Cite this page

“Illinois Car Sales Tax & Out-of-State Rules.” Voltra. Last verified September 17, 2026. https://voltra.ai/car-sales-tax/illinois/

More state-by-state guides: trade-in tax credit by state · recent rule changes · all states + the out-of-state checker

Illinois car sales tax questions

Illinois taxes vehicle sales at 6.25% state plus local add-ons (depends on the dealer's location). What that rate hits is the taxable price the desk computes, and trade-in treatment and doc fees decide that number.

Illinois taxes the price after the trade-in is deducted. Applies to qualified trade-ins (items the dealer is in the business of selling); the $10,000 cap on first division motor vehicles applied only to 2020-2021 sales and was removed effective January 1, 2022. Since the treatment feeds straight into the taxable price, the same unit and the same trade tax out differently by state.

Illinois exempts out-of-state buyers only under specific conditions. Exempt only for buyers from reciprocal states, when the buyer takes possession in Illinois with a dealer-issued drive-away permit or out-of-state plates transferred to the vehicle, and the buyer certifies nonresidency on Form ST-588. Buyers from the eight non-reciprocal states on the April 2026 ST-58 chart (AZ, CA, FL, HI, IN, MA, MI, SC) are charged Illinois tax at the chart rate for their home state (e.g., FL 6.00%, CA 6.25%, SC 5.00% up to a $500 maximum).

Illinois credits sales tax legally paid to another state, so the same dollars are not taxed twice.

Illinois caps dealer doc fees. The doc fee is included in the taxable amount.

Start with the sale price and subtract the trade-in allowance (Illinois credits it in full), then multiply by 6.25% state plus local add-ons (depends on the dealer's location) plus any local add-on. The dealer doc fee is taxable in Illinois, so add it before you multiply. The Illinois calculator on this page runs those steps with the verified figures and shows the out-the-door estimate before title and registration fees.