Illinois Department of Revenue
 
 
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Private Party Vehicle Tax

 
 

Definition

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.)

Tax Rate

The rate is determined by either the purchase price or fair market value of the motor vehicle. Fair market value is used when there is no stated purchase price (e.g., the motor vehicle is a gift). If the vehicle’s purchase price is less than $15,000, the tax is based on the age of the vehicle. If the vehicle’s purchase price is $15,000 or more, the tax is based on the purchase price. See the Private Vehicle Use Tax Chart.

In addition, there is a flat rate tax 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.

Form/Filing and Payment Requirements

  • Form RUT-50, Private Party Vehicle Tax Transaction Return (this form is not available on-line)

The RUT-50 is due within 30 days of the date the item is purchased (or acquired by gift or transfer).

NOTE: Form RUT-50 and any tax due is submitted to the Office of the Secretary of State when the purchaser applies for title to the motor vehicle.

  • STS-76 - Illinois Aircraft/Watercraft and Vehicle Tax Information Guide

Exemptions

The following motor vehicles may be exempt from tax with proper documentation:
  • Vehicles given as estate gifts to surviving spouses
  • Vehicles purchased by government, charitable, educational, and religious organizations for their use
  • Rolling stock
  • Vehicles purchased by out-of-state residents who use them outside of Illinois for more than three months
  • Farm implements
  • Ready-mix concrete trucks
  • Vehicles purchased specifically for the purpose of donating to an exempt organization operated exclusively for educational purposes
  • Certain second division motor vehicles and trailers if the Commercial Distribution Fee administered by the Secretary of State is paid.

Questions?

  • Call us at: 1 800 732-8866 or 1 217 782-3336
  • Call TDD: 1 800 544-5304
 
 
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