Illinois Tax Requirements for Cars, Trucks, Vans, Motorcycles, ATVs, Trailers, and Mobile Homes

At the time you apply for an Illinois title with the Secretary of State for a vehicle you purchased, leased, or acquired by gift or transfer, you are required to submit either payment of tax or proof that no tax is due before your vehicle can be titled.

(Here, the term “vehicle” refers to cars, trucks, vans, motorcycles, ATV’s, trailers, and mobile homes [house trailers].)

The Illinois Department of Revenue (IDOR) is responsible for administering the collection of tax and providing the necessary tax forms. You must make separate payments for tax due and title fees. Make your tax payment payable to IDOR and your payment for title fees payable to the Secretary of State.

One of the following forms must be used to pay tax or prove that no tax is due:

• Form RUT-25, Vehicle Use Tax Transaction Return, due no later than 30 days after the date the vehicle is brought into Illinois or the date of purchase; or
• Form RUT-25-LSE, Use Tax Return for Lease Transactions, due no later than 30 days after the date the vehicle is brought into Illinois or the date of lease; or
• Form RUT-50, Private Party Vehicle Use Tax Transaction Return, due no later than 30 days after the purchase date of the vehicle; or
• Form ST-556, Sales Tax Transaction Return, due no later than 20 days after the date of delivery of the vehicle.
• Form ST-556-LSE, Transaction Return for Leases, due no later than 20 days after the date of delivery of the vehicle.

Note: For more detailed information, refer to the instructions provided with each return.

The tax return you are required to file has a specific due date. You should file your tax return and pay any tax due by that date to avoid penalty and interest charges even though you may not be able to complete your application for title.

To do so, you may submit your tax return and any tax payment either to the Illinois Office of the Secretary of State or directly to IDOR. When you pay the tax, please make sure you receive your copy of the tax return with an indication (such as a receipt stamp or a label) that your tax return has been filed. When you are ready to complete your title forms, you will need to submit your copy of the tax return to the Illinois Office of the Secretary of State as proof that you have filed your tax return. For information on requesting a receipted copy of a return, please visit the How to Obtain a Receipted Copy of Vehicle Sales and Use Tax Returns page.

You must use Form RUT-50 to report your purchase (or acquisition by gift or transfer) of a vehicle from an individual or other private party who is not a retailer of vehicles. Attaching a copy of the bill of sale or proof of purchase to Form RUT-50 may prevent future notices. Form RUT-49, Vehicle Transaction Affidavit, is available to verify information reported or provide information not reported on Form RUT-50. This form can also be used in lieu of a bill of sale with Form RUT-50.

Note: The purchase (or acquisition by gift or transfer) of a trailer or mobile home from an individual or other private party who is not a retailer of vehicles is not subject to this tax and does not require a tax form when you apply for title.

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. You should attach a copy of the bill of sale as proof of the purchase price.

If you are leasing the vehicle from an out-of-state retailer, you must use Form RUT-25-LSE to report the transaction. Attach a copy of the bill of sale or lease contract, as appropriate, as proof of the selling price and of any tax previously paid. If you cannot obtain the proper documentation, you may submit a letter from the leasing company or selling dealer.

If you originally purchased your vehicle from a dealer, lending institution, leasing company, or other retailer, you must use Form RUT-25 when you bring the vehicle into Illinois. You should attach a copy of the bill of sale or other proof of the purchase price. If you had the vehicle titled in another state for more than three months, no Illinois tax is due, but you still must file Form RUT-25 to reflect that fact.

If you are leasing the vehicle from an unregistered out-of-state retailer, you must use Form RUT-25-LSE to report the transaction. Attach a copy of the bill of sale or lease contract, as appropriate, as proof of the selling price and of any tax previously paid. If you cannot obtain the proper documentation, you may submit a letter from the leasing company or selling dealer.

If you originally purchased (or acquired by gift or transfer) your vehicle from an individual or other private party, you must use Form RUT-50 when you bring the vehicle into Illinois. If you had the vehicle titled in another state for more than three months, no Illinois tax is due, but you still must file Form RUT-50 to reflect that fact.

On Forms RUT-25 and RUT-50, the exemption for using the vehicle outside Illinois for more than three months applies only to individuals moving into Illinois. It does not apply to businesses, leasing companies, lessees moving into Illinois, or military persons whose home of record is in Illinois. In these situations, tax is due; however, a reasonable allowance of depreciation for prior out-of-state use is allowed.

These forms generally are obtained when you license and title your vehicle at a local driver's license facility or currency exchange. Do not make copies of the forms prior to completing. These forms have unique transaction numbers that should not be duplicated. Doing so could delay processing.

As the owner of the vehicle, the lessor (leasing company) generally is liable for Illinois Use Tax and responsible for filing and paying this tax using Form RUT-25-LSE when the vehicle is brought into Illinois. However, the lease contract may require you, the lessee, to assume this responsibility. If you must do so, you should attach a letter from the leasing company or a copy of the lease agreement to Form RUT-25-LSE as proof of the purchase price and tax previously paid to another state.

Form RUT-25-LSE generally is obtained when you license and title your vehicle at a local driver's license facility or currency exchange. Do not make copies of the forms prior to completing. These forms have unique transaction numbers that should not be duplicated. Doing so could delay processing.

When a leasing company sells an item at retail in Illinois that must be titled or registered by an agency of Illinois state government, the leasing company must register with IDOR and report the sale on Form ST-556, regardless of whether the leasing company is reporting tax due.

Registration with IDOR can be completed electronically through MyTax Illinois, by completing and mailing Form REG-1, Illinois Business Registration Application, or by visiting one of IDOR's offices.

Generally, the dealer will complete and file the proper tax return along with the required title forms for you. The dealer will use Form ST-556 to report your purchase.

The Illinois leasing company, lending agency, or other retailer is required to be registered with IDOR to collect Illinois Sales Tax, and must file Form ST-556 to report the purchase. Generally, the leasing company, lending agency, or retailer will complete and file this tax return along with the required title forms for you. If this is a transaction for lease, the registered retailer will complete Form ST-556-LSE instead.

You can obtain tax forms by

• requesting them from the Illinois Office of the Secretary of State, where you are applying for title
• calling our 24-hour Forms Order Line at 1 800 356-6302
• writing us at:
  ILLINOIS DEPARTMENT OF REVENUE
  PO BOX 19010
  SPRINGFIELD IL 62794-9010

You can also use our forms ordering page to request that IDOR mail you a blank copy of a form and its instructions (RUT-25, RUT-25-LSE, RUT-50, or RUT-75 only).

You can get tax help by

• using this Web Site
• calling our Taxpayer Assistance Division at 1 800 732-8866 or 1 217 782-3336
• calling our TDD-telecommunications device for the deaf at 1 800 544-5304
• writing to:
  
  ILLINOIS DEPARTMENT OF REVENUE
  PO BOX 19044
  SPRINGFIELD IL 62794-9044