Vehicle Tax FAQs

This webpage contains common questions and answers about Illinois vehicle (e.g., cars, trucks, vans, motorcycles, ATVs, buses, watercraft, aircraft, motor homes, trailers, snowmobiles, and manufactured (mobile) homes) taxes. The information contained in the text below may overlap or repeat from one question to another. Please refer to the appropriate question for the most helpful answer pertaining to your topic.

1. How does Illinois tax items that must be titled or registered with an Illinois agency?
2. When are my tax form and payment due if I purchase or lease a vehicle?
3. What do I file if I purchase a vehicle from an Illinois retailer (leasing company, lending agency, vehicle dealer, etc.)?
4. What do I file if I am moving into Illinois with a vehicle I own that needs to be titled?
5. Who must file Form RUT-25 and how can it be corrected?
6. What do I file if I am moving into Illinois with a leased vehicle?
7. When must Form RUT-25-LSE be filed?
8. What items are reported on Form RUT-25 and Form RUT-25-LSE?
9. What documentation can validate a claim made on Form RUT-25 or RUT-25-LSE that sales tax has been paid to another state?
10. What do I file if I recently purchased a boat?
11. What do I file if I recently leased a boat?
12. Where can I find information about Form RUT-75?
13. Who must file Form RUT-50 and when must the form be filed?
14. How is tax calculated on Form RUT-50?
15. How do I file Forms ST-556 and ST-556-LSE?
16. As a retailer, am I allowed a discount from the sales tax I report on my Form ST-556, Sales Tax Transaction Return, and Form ST-556-LSE, Transaction Return for Leases?
17. For purposes of determining the selling price subject to sales tax, are incentives such as rebates, discounts, or coupons taxable?
18. How do I request additional copies of blank paper ST-556 and ST-556-LSE returns?
19. How do I respond to a notice from IDOR that increases the private party tax due on a vehicle I purchased or was gifted?
20. How can I obtain a new or duplicate title?

Items that must be titled or registered with an Illinois agency include, without limitation, motor vehicles (e.g., cars, trucks, vans, buses, etc.), motorcycles, watercraft, aircraft (e.g., airplanes, helicopters, hot-air balloons, gliders, etc.), trailers, motor homes, manufactured (mobile) homes, snowmobiles, and all-terrain vehicles (ATVs). Generally, any applicable taxes must be paid before the item can be registered or titled.

Vehicles purchased from a retailer, registered and licensed with the Illinois Department of Revenue (IDOR) to collect and remit the vehicle sales tax, are reported on Form ST-556, Sales Tax Transaction Return. This form is used to report a sale of any of the above-listed vehicles. This form also can be filed by registered, out-of-state retailers (e.g., dealers, leasing companies) selling to Illinois residents.

If you sell items at retail in Illinois and, as part of the same transaction, the items are simultaneously leased and those items are of the type that must be titled or registered by an agency of Illinois state government (e.g., vehicles, watercraft, aircraft, trailers, and manufactured (mobile) homes), you must report these sales for lease on Form ST-556-LSE, Transaction Return for Leases. Note: If you are a leasing company selling such an item at the end of a lease, do not file Form ST-556-LSE. Instead, use Form ST-556, Sales Tax Transaction Return.

Beginning January 1, 2025, Public Act 103-592 amends the ROT Act to provide that a lease of tangible personal property, excluding items that must be titled and registered with an agency of state government (other than trailers that are not semitrailers as defined in Section 1-187 of the Illinois Vehicle Code), is considered a sale at retail. You must file Form ST-1 if you are in the business of leasing or renting tangible personal property.

You must complete Form LSE-3, Lease/Rental Payments for Certain Titled or Registered Property, when you file Form LSE-1, Tax Return for Vehicle Leasing Companies, or Form LSE-1-X, Amended Tax Return for Vehicle Leasing Companies, if you had receipts for leases or rentals of the following titled or registered property:

• trailers, other than semitrailers as defined in Section 1-187 of the Illinois Vehicle Code, that are required to be registered with an agency of this State; or
• 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 all-terrain vehicles (“ATVs”) and off-road motorcycles.

You must complete Form RUT-25, Vehicle Use Tax Transaction Return, if you purchased a motor vehicle, watercraft, aircraft, trailer, manufactured (mobile) home, snowmobile, or ATV from an unregistered, out-of-state retailer and will title or register the item in Illinois. Out-of-state leasing companies should not use this form to report sales to an Illinois resident at the end of a lease. Instead, these leasing companies must register with IDOR and file Form ST-556, Sales Tax Transaction Return. For more information, see ST-556 Sales Tax Transaction Return Instructions.

You must complete Form RUT-25-LSE, Use Tax Return for Lease Transactions, if you are titling or registering in Illinois a motor vehicle, watercraft, aircraft, trailer, manufactured (mobile) home, snowmobile, or ATV that you leased through an unregistered, out-of-state retailer. Do not use Form RUT-25-LSE for non-leased items purchased from an unregistered, out-of-state retailer. Instead, use Form RUT-25, Vehicle Use Tax Transaction Return. Also, do not use Form RUT-25-LSE if you leased an item through an Illinois retailer. Instead, the retailer must complete Form ST-556-LSE, Transaction Return for Leases.

You must file Form RUT-50, Private Party Vehicle Use Tax Transaction, if you acquired a vehicle by purchase, gift, donation, or transfer from a private party. Note: 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.

If you acquire an aircraft or watercraft by gift, donation, transfer, or non-retail purchase, you must file Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return. For purposes of Form RUT-75, “aircraft” includes airplanes, helicopters, hot-air balloons, ultra lights, gliders, blimps, dirigibles, seaplanes, and anything else defined as an “aircraft” in Section 3 of the Illinois Aeronautics Act. “Watercraft” includes Class 2, Class 3, and Class 4 watercraft as defined in Section 3-2 of the Boat Registration and Safety Act; and personal watercraft (e.g., jet skis, wave runners, etc.) as defined in Section 1-2 of the Boat Registration and Safety Act. This definition does not include canoes or kayaks. See 625 ILCS 45/1-2 and 3-2.

See the Illinois Tax Requirements for Cars, Trucks, Vans, Motorcycles, ATVs, Trailers, and Mobile Homes page and the Sales and Use Taxes information page for more information.

The process for applying for title and registration in Illinois requires that one of the tax forms listed below is submitted, along with the application for title and/or registration to the appropriate titling agency. The specific due date for timely filing of each form is as follows:

• Form ST-556, Sales Tax Transaction Return, is due within 20 calendar days after the date of delivery of the item sold;
• Form ST-556-LSE, Transaction Return for Leases, is due within 20 days after the date of delivery of the item leased;
• Form RUT-25, Vehicle Use Tax Transaction Return, is due within 30 days after the date the item is brought into Illinois;
• Form RUT-25-LSE, Use Tax Return for Lease Transactions, is due within 30 days after the date the item is brought into Illinois;
• Form RUT-50, Private Party Vehicle Use Tax Transaction Return, is due within 30 days from the date the vehicle was acquired by purchase, gift, or transfer, or within 30 days of bringing it into Illinois if acquired outside of Illinois; and

Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return, is due within 30 days from the date of acquiring the aircraft or watercraft if acquired in Illinois, or within 30 days of bringing it into Illinois if acquired outside of Illinois.

Purchase from a Registered Illinois Retailer
If the Illinois retailer (e.g., leasing company, lending agency, vehicle dealer, etc.) is registered with the Illinois Department of Revenue to collect Illinois tax, then Form ST-556 is used to report the purchase. Generally, the retailer will complete and file this tax return along with the required title forms for you.

Purchase from an Unregistered Retailer
If the Illinois retailer (e.g., leasing company, lending agency, vehicle dealer, etc.) is not registered, the purchaser is required to report the purchase. To do so, the purchaser must use Form RUT-25. Since Form RUT-25 is due 30 days after the date the item is brought into Illinois and the purchaser already has possession of the item in Illinois, the actual purchase date should be used for both the "purchase date" and the "date brought into Illinois" on the return. The purchaser should attach a copy of the bill of sale as proof of the purchase price.

If you originally purchased your vehicle from a retailer (e.g., dealer, lending institution, leasing company), you must file 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 are a nonresident individual moving into Illinois and had used the vehicle in another state for more than 3 months, no Illinois use tax is due, but you still must file Form RUT-25 to reflect that fact. Please note that the nonresident exemption applies only to nonresident individuals and does not apply to nonresident business entities relocating to Illinois. See 35 ILCS 105/3-70; 86 Ill. Adm. Code 150.315.

If you originally acquired your vehicle by purchase, gift, or transfer from an individual or other private party, you must file Form RUT-50 when you bring the vehicle into Illinois. If you are a nonresident individual moving into Illinois and had used the vehicle in another state for more than 3 months, no Illinois use tax is due, but you still must file Form RUT-50 to reflect that fact. Please note that the nonresident exemption applies only to nonresident individuals and does not apply to nonresident business entities relocating to Illinois. See 35 ILCS 105/3-70; 86 Ill. Adm. Code 150.315.

If you move into Illinois with a leased vehicle, please see "What do I file if I am moving into Illinois with a leased vehicle?"

Note: Military persons whose home address of record is in Illinois are considered residents of Illinois and do not qualify for the nonresident exemption.

Note: If you purchased a vehicle from a retailer outside of Illinois and used the vehicle outside of Illinois before bringing it to Illinois for use, the selling price is subject to a reasonable allowance for depreciation for the period of prior out-of-state use. 35 ILCS 105/3-10. Also, if you acquired the vehicle outside of Illinois and already paid a tax in another state on the sale, purchase, or use of the vehicle, credit is authorized under the Use Tax Act for taxes properly due and paid to the other state. 35 ILCS 105/3-55(d).

These forms are generally 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.

Form RUT-25, Vehicle Use Tax Transaction Return, must be filed by a person or business titling or registering an item in Illinois when the person or business:

• purchased an item from an unregistered, out-of-state retailer (e.g., dealer, lending institution, or leasing company) selling items that are required to be titled and/or registered or 
• moved into Illinois with an item owned by the person or business that was originally purchased from an unregistered, out-of-state retailer (e.g., dealer, lending institution, or leasing company) selling items that are required to be titled and/or registered.

If you need to correct a previously filed Form RUT-25, you must complete and file Form RUT-25-X, Amended Vehicle Use Tax Transaction Return.

If you are a lessor (e.g., a leasing company) and you purchased a vehicle to lease to others from an out-of-state retailer that is not registered with the Illinois Department of Revenue (IDOR), you must file Form RUT-25-LSE to report the transaction and pay the tax. Attach a copy of the bill of sale 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 retailer. Please note that the nonresident exemption does not apply to nonresident business entities (e.g., leasing companies) relocating to Illinois. 35 ILCS 105/3-70; 86 Ill. Adm. Code 150.315.

While the legal incidence of tax is on the lessor (leasing company), if you are a lessee (e.g., the lease customer) and you leased a vehicle through an out-of-state retailer (e.g., a leasing company, vehicle dealer, etc.) that is not registered with IDOR, you must file Form RUT-25-LSE to report the transaction and pay the tax. This is because, generally, leases contain contractual provisions stating that the lessees will reimburse the lessors for their tax costs. It is not because of Illinois tax law. When you file Form RUT-25-LSE, attach a copy of the lease contract 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. Please note that the nonresident exemption does not apply to lessees relocating to Illinois. 35 ILCS 105/3-70; 86 Ill. Adm. Code 150.305(e).

Note: If you are a lessee and you leased a vehicle from a retailer outside of Illinois and used the vehicle outside of Illinois before bringing it to Illinois for use, the selling price is subject to a reasonable allowance for depreciation for the period of prior out-of-state use. 35 ILCS 105/3-10. Also, if you leased the vehicle outside of Illinois and already paid a tax in another state on the lease of the vehicle, credit is authorized under the Use Tax Act for taxes properly due and paid to the other state. 35 ILCS 105/3-55(d).

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

You must complete Form RUT-25-LSE, Use Tax Return for Lease Transactions, if you are titling or registering in Illinois a motor vehicle, watercraft, aircraft, trailer, manufactured (mobile) home, snowmobile, or all-terrain vehicle (ATV) that you leased through an unregistered, out-of-state dealer or retailer. Do not use Form RUT-25-LSE for non-leased items purchased from an unregistered, out-of-state dealer or retailer. Instead, use Form RUT-25, Vehicle Use Tax Transaction Return. Also, do not use Form RUT-25-LSE if you leased an item through an Illinois dealer. Instead, the dealer must complete Form ST-556-LSE, Transaction Return for Leases.

If you have previously filed Form RUT-25-LSE and now need to correct the return, you must complete and file Form RUT-25-LSE-X, Amended Use Tax Return for Lease Transactions.

Items that must be reported on Form RUT-25, Vehicle Use Tax Transaction Return, include cars, trucks, vans, motorcycles, ATVs, buses, watercraft, aircraft, motor homes, trailers, snow mobiles, and manufactured (mobile) homes. You must file Form RUT-25 if you own such a vehicle and you purchased it from an unregistered, out-of-state retailer (e.g., dealer, lending institution, or leasing company selling at retail), and you will title or register the item in Illinois. If you leased rather than purchased any of these items, Form RUT-25-LSE must be used instead.

To validate a claim of credit for tax paid to another state made on Form RUT-25 or Form RUT-25-LSE, the following documents are acceptable: 

• bill of sale;
• dealer's invoice;
• letter from a leasing company;
• letter from the selling dealer; or
• copy of the lease agreement showing the financial information.

Purchase from a non-retailer

If you acquire a watercraft from a person or business that is not in the business or selling watercraft at retail, you must file Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return. You must pay 6.25% watercraft use tax on the watercraft's purchase price. 35 ILCS 158/15-15.

Transactions between non-immediate family members

Purchase price is defined as reasonable consideration paid for a watercraft received in money, cash, credits, property, services, etc., and including the value of any motor sold with, or in conjunction with, the watercraft. 35 ILCS 158/15-15. In a case of a gift or transfer where there is no consideration paid, tax is imposed on the fair market value on the date the watercraft or the share of the watercraft was acquired or the date the watercraft was brought into the State, whichever is later, unless the taxpayer can demonstrate that a different value is reasonable. 86 Ill. Adm. Code 153.110(b). In cases of tax avoidance, IDOR may utilize contracted vendors to determine the validity of the purchase price stated on tax returns. 35 ILCS 158/15-30.

Transaction between immediate family members

In the case of a watercraft transfer between immediate family members (i.e., a spouse, parent, brother, sister, or child), reasonable consideration ordinarily means the consideration paid, unless it appears from the facts and circumstances that the primary motivation of the transfer was the avoidance of tax. 35 ILCS 158/15-5. You must pay 6.25% watercraft use tax on the amount paid to the immediate family member. In the case of gifts between immediate family members, no tax is due unless it appears from the facts and circumstances that the primary motivation of the transfer was the avoidance of tax. 86 Ill. Adm. Code 153.110(b). In cases of tax avoidance, IDOR may utilize contracted vendors to determine the validity of the purchase price stated on tax returns. 35 ILCS 158/15-30.

Transfer of Fractional Shares of Watercraft

If you acquire an ownership share of a watercraft, watercraft use tax is imposed on the purchase price of the share acquired. All owners are jointly and severally liable for any tax due as a result of the purchase, gift, or transfer of an ownership share of the watercraft. 35 ILCS 158/15-15. In the case of ownership shares sold between immediate family members, purchase price ordinarily means the consideration actually paid, unless it appears from the facts and circumstances that the primary motivation of the selling of the shares was the avoidance of tax. Tax is due on the amount paid to the immediate family member. In the case of a share of a watercraft acquired by gift between family members, no tax is due unless it appears from the facts and circumstances that the primary motivation of the share transfer was the avoidance of tax. 86 Ill. Adm. Code 153.110(c). In cases of tax avoidance, IDOR may utilize contracted vendors to determine the validity of the purchase price stated on tax returns. 35 ILCS 158/15-30. There is no provision for a trade-in allowance under Watercraft Use Tax Law. For more information, see 35 ILCS 158/15-1 et seq., and 86 Ill. Adm. Code 153.101 et seq.

Purchase from a registered retailer

If you purchase a watercraft for use from a registered retailer (e.g., dealer), the retailer will collect and remit the tax for you utilizing Form ST-556, Sales Tax Transaction Return. The tax is based on the purchase price, and the tax rate is determined by the location of the dealership. Note that some local governments also may impose a separate local use tax on the transaction. If you leased a boat, see "What do I file if I recently leased a boat?"

Note: If you are a lessee (e.g., lease customer) and you purchased a watercraft at the end of a lease, the lessor is considered a retailer and will collect and remit use tax for you using Form ST-556.

Purchase from an unregistered, out-of-state retailer
If you purchase a watercraft from an unregistered, out-of-state retailer (e.g., dealer), you must file Form RUT-25, Vehicle Use Tax Return and pay the tax. The tax is based on the watercraft's purchase price. The tax rate is determined by the address at which the watercraft will be registered or titled in Illinois. Please refer to the Form RUT-25 Instructions for details regarding which rate should be used based on the address used for registration or titling. Again, note that some local governments also may impose a separate local use tax on the transaction. If you leased a boat, see “What do I file if I recently leased a boat?”

Leased through a registered retailer

If you are a lessor (e.g., leasing company) and you purchased a watercraft from a registered retailer, the retailer will collect and remit tax for you using Form ST-556-LSE, Transaction Return for Leases. See 86 Ill. Adm. Code 150.305(e).  

While the legal incidence of tax is on the lessor (e.g., leasing company), if you are a lessee (e.g., lease customer) and you leased a watercraft through a registered retailer (e.g., watercraft dealer), the retailer will collect and remit tax for you using Form ST-556-LSE, Transaction Return for Leases. See 86 Ill. Adm. Code 150.305(e). This is because, generally, leases contain contractual provisions stating that the lessees will reimburse the lessors for their tax costs. It is not because of Illinois tax law. 

Leased through an unregistered or out-of-state retailer

If you are a lessor (e.g., leasing company) and you purchased a watercraft to lease to others from an out-of-state or unregistered retailer, you must file Form RUT-25-LSE, Use Tax Return for Lease Transactions, to report the transaction and pay the tax. Attach a copy of the bill of sale 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 retailer. 

While the legal incidence of tax is on the lessor (e.g., leasing company), if you are a lessee (e.g., lease customer) and you leased a watercraft through an out-of-state or unregistered retailer (e.g., watercraft dealer), you must file Form RUT-25-LSE to report the transaction and pay the tax. This is because, generally, leases contain contractual provisions stating that the lessees will reimburse the lessors for their tax costs. It is not because of Illinois tax law. When you file Form RUT-25-LSE, attach a copy of the lease contract 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.

Note: If you are a lessee and you leased a watercraft through a retailer outside of Illinois and used the watercraft outside of Illinois before bringing it to Illinois for use, the selling price is subject to a reasonable allowance for depreciation for the period of prior out-of-state use. See 35 ILCS 105/3-10. Also, if you leased the watercraft outside of Illinois and already paid a tax in another state on the lease of the watercraft, credit is authorized under the Use Tax Act for taxes properly due and paid to the other state. See 35 ILCS 105/3-55(d).

Form RUT-25-LSE is generally obtained when you license and title your watercraft at the appropriate State agency. Do not make copies of the form prior to completing. The form has a unique transaction number that should not be duplicated. Doing so could delay processing.

For information about Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return, see the instructions to Form RUT-75, the Watercraft Use Tax page, the Aircraft Use Tax page, and 86 Ill. Adm. Code Parts 152 and 153.

If you need to correct a previously filed Form RUT-75, you must complete and file Form RUT-75-X, Amended Aircraft/Watercraft Use Tax Transaction Return.

Form RUT-50, Private Party Vehicle Use Tax Transaction, must be filed by an individual or business entity titling a motor vehicle in Illinois when the individual or business entity:

• acquired a motor vehicle by purchase, gift, or transfer from a private party either within or outside Illinois; or
• moved to Illinois with a motor vehicle the individual or business entity owns that was originally acquired by purchase, gift, or transfer from a private party.

 Form RUT-50 is due within 30 days from the date the vehicle was acquired by purchase, gift, or transfer, or within 30 days of bringing it into Illinois if acquired outside of Illinois. For more information about reporting the tax due, see the instructions to Form RUT-50 or 86 Ill. Adm. Code Part 151.

To correct a previously filed Form RUT-50, complete and file Form RUT-50-X, Amended Private Party Vehicle Use Tax Transaction Return.

Note: 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.

The amount of Private Party Vehicle Use Tax reported on Form RUT-50 is determined using one of two tax tables found in the form's instructions. The purchase price or fair market value of a vehicle determines which tax table to use. When there is no stated purchase price, such as in the case of a gift or an even trade, the fair market value must be used. The fair market value may be obtained from a licensed dealer. A trade-in deduction is not allowed on this tax form.

If you live in the corporate limits of the City of Chicago or Cook County, you may also owe an additional tax to those jurisdictions. See RUT-5, Private Party Vehicle Use Tax Chart for the current Illinois Private Party Vehicle Use Tax rates and RUT-6, Form RUT 50 Reference Guide for current Private Party Vehicle Use Tax rates for Chicago and Cook County.

See the instructions to Form RUT-50 for a list of exemptions and exceptions to the standard tax calculations on Form RUT-50. When marking an exemption or exception on Form RUT-50, ensure that the correct exemption or exception is clearly indicated/circled, and provide any supporting documentation you may have.

Retailers can file electronically through MyTax Illinois, which is the Illinois Department of Revenue’s online filing, payment, and account management system that retailers can use to file returns and make payments. There is no fee to register for a MyTax Illinois account.

Retailers can also file Forms ST-556 and ST-556-LSE electronically using an approved service provider in the Electronic Registration and Title (ERT) program.

Retailers whose annual gross receipts average $20,000 or more must file Forms ST-556 and ST-556-LSE electronically. 35 ILCS 120/3; 35 ILCS 105/9.

Retailers may request a waiver of the electronic filing requirement if they do not have internet access or demonstrate hardship in filing electronically. Retailers should contact Taxpayer Assistance at 1 800 732-8866, 217 782-3336, or 1 800 544-5304 (TTY) to request a waiver form, complete the waiver form, and mail it to the address listed on the form. IDOR will notify the retailer if the waiver request is approved or denied.

Retailers not mandated to file Form ST-556 and ST-556-LSE electronically or who have received a waiver of the electronic filing requirement can request preprinted paper returns by calling our Central Registration Division at 217 785-3707. Retailers can also obtain preprinted paper returns using MyTax Illinois. Note that preprinted paper forms will be pre-filled with certain information for each of the retailer’s business locations. 

For information about Form ST-556 and Form ST-556-LSE, see:

• The instructions to these forms.
• 86 Ill. Adm. Code Part 130.

Yes. The Retailers’ Occupation Tax Act and the Use Tax Act allow a retailer to claim a discount, provided the retailer properly and timely files its Form ST-556, Sales Tax Transaction Return, or Form ST-556-LSE, Transaction Return for Leases, and pays the applicable tax by the due date. 35 ILCS 120/3; 35 ILCS 105/9; 86 Ill. Adm. Code 130.501-510; 86 Ill. Adm. Code 150.905. Under P.A. 102-1019, if you are required to file electronically and do not, the discount or retailers’ allowance for timely filed and paid returns will be disallowed.

For returns due on or after January 1, 2025, the discount is limited to $1,000 per month for all returns (i.e., both Forms ST-556 and ST-556-LSE) filed that month. The $1,000 monthly cap applies to vehicle sales with a delivery date on or after December 12, 2024, which corresponds to returns due on or after January 1, 2025. Retailers will no longer be able to reduce the tax remittance by the amount of the retailers’ allowance when filing Forms ST-556 and ST-556-LSE. To avoid potential billing issues or confusion, IDOR will calculate the discount on these returns through a monthly reconciliation process that will occur approximately 60 days after the end of a monthly liability period. The retailers’ allowance will be issued once the reconciliation process is completed each month.

If you are not mandated to file Forms ST-556 and ST-556-LSE electronically and file using paper returns, do not enter a figure on the retailers’ allowance line. You must remit all tax reported as due on your return to be issued the retailers’ allowance, as applicable, through IDOR’s monthly reconciliation process.

Note: Forms ST-556-X and ST-556-LSE-X filed on paper on or after January 1, 2023, to correct a return filed prior to January 1, 2023, will not cause a previously allowed discount or retailers’ allowance to be removed.

In a retail transaction, incentives for retail purchasers, such as coupons, discounts, or rebates, are considered part of the selling price and subject to sales tax if the retailer receives reimbursement for offering the incentive, as with a manufacturer's rebate or an employee discount.

Incentives are not subject to sales tax if the retailer does not receive reimbursement for the cost of the incentive from any source.

See 86 Ill. Adm. Code 130.401 and 130.2125 for more information.

After activating your account, you can utilize MyTax Illinois to obtain and print blank ST-556 or ST-556-LSE returns pre-filled with certain information for each of your business locations. You can also contact the Illinois Department of Revenue’s (IDOR) Central Registration Division at 217 785-3707 to request additional blank paper returns for each of your business locations.

Note: Do not photocopy or otherwise duplicate a paper Form ST-556 or ST-556-LSE if you need additional returns. Each return is printed with a unique transaction number that IDOR uses for identification purposes. Filing a photocopied return may cause delays in processing the return and may result in IDOR assessing penalties and interest.

If you purchased a motor vehicle from or were gifted a motor vehicle by a private party and received an assessment from the Illinois Department of Revenue for increased tax due based on the fair market value of the vehicle, respond to the notice with a signed copy of your bill of sale or a fair market value appraisal from a licensed dealer to support the tax originally remitted with your Form RUT-50, Private Party Vehicle Use Tax Transaction Return.

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 for Form RUT-50. 

You may also complete and file Form RUT-50-X, Amended Private Party Vehicle Use Tax Transaction Return, or complete the IDOR-1-TRN, Return Correction Notice, that is issued when you receive an assessment on Form RUT-50 to make any necessary changes to information on your return.

See the instructions to Form RUT-50 for a list of exemptions and exceptions to the standard tax calculations on Form RUT-50. When marking an exemption or exception on Form RUT-50, ensure that the correct exemption or exception is clearly indicated/circled, and provide any supporting documentation you may have.

To obtain a new, replacement, or duplicate title, you must contact the agency that issued you the title.