is there sales tax when buying from an individual not a dealer?

Asked by GramaJ Nov 19, 2016 at 12:55 PM

Question type: Shopping & Pricing

Where and how much sales tax will I pay when buying a car from an
individual?  We both live in Illinois?

2 Answers

The state DMV will hit you up for the tax when you register the car. Check with the Illinois DMV but the tax is probably the going sales tax rate you pay on other things.

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If you buy from a licensed dealer, he is required to collect the sales tax and forward it to the state. If you buy from an individual, you pay the sales tax when you get your tag at the courthouse. As far as amounts, since you live in a liberal state, the sales tax is astronomical. In Illinois, there is a 6.25% state sales tax on cars, a county sales tax of 2%, with a home rule tax of 1%, and an RTA tax of 1%. So, if you buy a car for $5,000 in Illinois, the sales tax alone will be $500.

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