Illinois used car dealer paperwork and sales tax guide
How Illinois sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Illinois dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Illinois: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Illinois deal.
Illinois tax and fees at a glance
| Item | Illinois |
|---|---|
| State tax | 6.25% state rate plus local tax |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Documentary fee | Part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $165 |
How Illinois sales tax is worked out
Illinois: the dealer collects 6.25% state tax plus the local tax of the dealership's location on the price, the documentary fee and other charges, less the trade-in. A separately stated service contract is not taxed. Enter the combined local rate in Settings (extra tax can apply for buyers in Chicago, the RTA area or the Metro-East: confirm with the IDOR). The dealer files form ST-556 within 20 days. Title fee starts at $165.
Required wording beside the dealer fee
Illinois requires this wording where the dealer fee appears. The Buyer's Order prints it.
DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF $300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW.
Illinois paperwork a dealer prints
DMS Apex prints these documents for a Illinois deal, all in black and white:
- Buyer's Order with the documentary fee notice
- Buyers Guide
This is general information, not legal or tax advice. Illinois rules change: confirm current requirements with the Illinois Secretary of State or the Illinois Department of Revenue.
Common questions
How much is sales tax on a used car in Illinois?
6.25% state rate plus local tax. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Illinois Secretary of State or the Illinois Department of Revenue.
Does a trade-in lower the tax in Illinois?
Yes. In Illinois the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Illinois?
Yes. In DMS Apex the documentary fee is part of the taxable amount for Illinois.
Does DMS Apex print Illinois dealer forms?
Yes. It prints Buyer's Order with the documentary fee notice, Buyers Guide.
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