Are What Is Illinois Car Sales Tax you excited to buy a new car in Illinois? If so, hold on tight! Before you can drive off into the sunset, there’s one crucial factor that could affect your budget: the state’s car sales tax. But what exactly is it and how does it work? Don’t worry, we’ve got you covered! In this post, we’ll break down everything you need to know about Illinois car sales tax so that you can make informed decisions when purchasing your next vehicle. So buckle up and let’s get started!
What is Illinois Car Sales Tax
In Illinois, the car tax is 7.25%. This means that if you purchase a new car in Illinois, you will pay $87.50 in sales tax. If you buy a used car, the sales tax rate is 5%. In addition to the car sales tax, there are also additional taxes that may apply to certain purchases, such as special transportation taxes or use taxes.
How Much Is Illinois Car Sales Tax
Illinois has a 6.25% sales tax rate. This means that the purchase of a car will cost you $0.0625 per dollar spent.
Who Pays Illinois Car Sales Tax
In Illinois, car tax is collected by the seller at the time of sale. The amount of the sales tax charged depends on the make and model of the vehicle, as well as where the purchase is made. In addition to Illinois’ standard sales tax rate of 7%, localities may also impose a additional 1-3% sales tax. Generally, taxes are paid by the buyer when they take possession of the vehicle. However, certain transactions – such as rentals and leases – are considered taxable events and will be taxed when payments are made.
What Is Exempt from Illinois Car Sales Tax
In Illinois, certain items are exempt from the state’s sales tax. This includes vehicles registered in Illinois, used cars and trucks, and motorcycles. There are also a few other specific items that are exempt from the state’s sales tax, including food for personal consumption and clothing sold to individuals who are not engaged in commercial activity. In addition, services that are ordinarily taxable, like haircuts or car washes, are generally exempt from sales tax in Illinois.
How to Pay Illinois Car Sales Tax
In Illinois, you must pay sales tax on the purchase of a car. The amount of sales tax you owe depends on the price of the car and where you purchase it. In general, you’ll pay three types of sales tax in Illinois: use, registration, and document. Use tax is paid when you use the car. This includes when you drive it, park it, or mount a trailer with it. You also have to pay registration and document taxes when you register your car and get your title. The amount of these taxes varies depending on the type of vehicle and where you buy it.
Conclusion
If you’re buying a car in Illinois, it’s important to know the state’s car tax rules. The tax is based on the value of the vehicle, not its price. There are some exceptions, such as for cars bought for use in business, but most vehicles fall under the main rule. That means that if the sale price is more than $1,000 but less than $25,000, there’s a 6% sales tax; between $25,000 and $75,000 there’s a 9.65% sales tax; and anything over $75,000 pays 10%. If you need to file an Illinois car tax return (Form IL-10), make sure to do so by April 15th of the year following your taxable year.
