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Does Illinois sales tax apply to leases of tangible personal property?
Effective January 1, 2025, sales and use taxes apply to most leased or rented tangible personal property. Please refer to Informational Bulletin FY 2025-15, Illinois Sales and Use Tax Applies to Leased or Rented Tangible Personal Property.
Generally, these changes do not apply to leases or rentals of property that is required to be titled or registered with an agency of this State. The following titled or registered items, however, are subject to the tax on leases effective January 1, 2025: (i) trailers other than semitrailers that are required to be registered with an agency of this State and (ii) items that are required to be titled with an agency of this State but not required to be registered with an agency of this State, such as ATVs and off-road motorcycles. Please refer to Informational Bulletin FY 2025-17, Reporting Requirements for Certain Titled or Registered Property Subject to Tax on Lease or Rental Receipts. Additional information on the taxation of property required to be titled or registered with an agency of this State is available on the Illinois Tax Requirements for Cars, Trucks, Vans, Motorcycles, ATVs, Trailers, and Mobile Homes webpage.