What is the sales tax on a used car in Chicago?

January 2, 2019 Off By idswater

What is the sales tax on a used car in Chicago?

9.5% in the city of Chicago. 8.25% in suburban Cook County. 7.25% outside of Cook County and Chicago. An additional $15 new vehicle county flat fee for cars and SUVs.

How much are taxes and title fees on a car in Illinois?

Standard tax, title and license fees charged on a new vehicle in Illinois are as follows: Sales Tax: 7.25% (additional county taxes may also apply) Title Fee: $150. License and Registration Fee: $151.

What is the sales tax on a used car in Cook County Illinois?

Illinois Sales Tax on Car Purchases: Illinois collects a 7.25% state sales tax rate on the purchase of all vehicles. There is also between a 0.25% and 0.75% when it comes to county tax.

Do you have to pay sales tax on a used car in Illinois?

If you’re buying a new or used car, it’s important to know the taxes and fees you may have to pay. Illinois tax on new and used vehicles is generally 6.25% but can vary by location.

What fees should I expect when buying a used car?

These include insurance, registration and fuel. Also be sure to factor in the costs of tax, title, registration and insurance for the used car you’re buying. As a broad rule and depending on where you live, tax, license, assorted fees and other costs will add roughly 10 percent to the purchase price.

Why do I have to pay tax on a used car?

When you trade your car in, the amount of your new car purchase gets reduced by the value of your vehicle trade-in. Then you’ll only need to pay tax on that lower sale amount. Let’s say you buy a used truck for $50,000 in Alberta, where used vehicle buyers pay the 5 percent federal GST.

How are sales of motor vehicles taxed in Illinois?

(Sales of motor vehicles from registered Illinois dealers are taxed under the Retailers’ Occupation Tax Act.) Use the Use Tax Rate Table in the Tax Rate Database to determine your tax liability. Form RUT-50, Private Party Vehicle Use Tax Transaction Return

Do you have to pay sales tax on a gift car in Illinois?

The tax is imposed on motor vehicles purchased (or acquired by gift or transfer) from another individual or private party. (Sales of motor vehicles from registered Illinois dealers are taxed under the Retailers’ Occupation Tax Act.)

Is there sales tax on cars in Chicago?

In addition to state and county tax, the City of Chicago has a 1.25% sales tax. There also may be a documentary fee of 166 dollars at some dealerships. The taxes can be different in the case of a vehicle being purchased by a private party.

What are the use tax rates in Illinois?

Use Tax Use Tax rates are 6.25% of the purchase price of general merchandise and 1% of the purchase price of qualifying food, drugs, and medical appliances. You are allowed credit for sales taxes paid to another state; however, if you pay tax to another state at less than the Illinois rates, you must pay Illinois the difference.

How do you calculate sales tax on an used car?

  • Ascertain the final sales price of your car.
  • Find out if your state taxes dealer incentives or not.
  • Check if your state offers a sales tax break for the value of your trade.
  • local and county sales tax rates are for your area (see Resources).
  • Multiply the sales tax rate by your taxable purchase price.

    What is the sales tax on a motor vehicle in Illinois?

    Illinois collects a 7.25% state sales tax rate on the purchase of all vehicles.

    What is the new car tax in Illinois?

    New and used vehicle dealers in Illinois are required to charge a vehicle use tax on most vehicle sales. The vehicle use tax is the same rate as the sales tax. Most counties in Illinois have a 6.5 percent sales tax rate, but Cook, DuPage , Kane, Lake, McHenry , Will, St. Clair and Madison counties have different sales tax rates.

    When do you pay taxes when buying a vehicle out of State?

    If you are registering a new title for a car purchased out of state, you will still be required to pay the ad valorem tax on the vehicle. New residents must pay 50 percent of the ad valorem within 30 days of arriving in the state and the remaining balance within one year.