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Selling a car in the Prairie State doesn't have to be a daunting task. Whether you are upgrading to a new model or looking to clear out your garage, understanding the Illinois vehicle code and the specific requirements is essential for a smooth transaction.
In 2026, the process remains focused on clear documentation and legal transparency to protect both the buyer and the seller. This guide walks you through every requirement for selling a car in Illinois, from preparing your Illinois car title to handling the necessary tax forms.
What You’ll Learn
In this article, we will answer:
What paperwork is required to legally sell a car in Illinois in 2026?
How do Illinois taxes and reporting affect a private vehicle sale?
What steps protect sellers from liability after the car is sold?
Overview
Step 1: Prepare Your Documentation
Before you list your vehicle, ensure your paperwork is in order. In Illinois, you cannot legally complete a sale without a valid certificate of title.
The Illinois Car Title: You must sign the title over to the buyer on the "Assignment of Title" section. All owners listed on the title must sign. If you have lost your title, you must apply for a duplicate using Form VSD 190 before proceeding with the sale.
VIN Verification: Ensure the Vehicle Identification Number (VIN) on the vehicle matches exactly the one on the title.
Odometer Disclosure: You are legally required to certify the vehicle's mileage at the time of the transfer. Under the Illinois Vehicle Code, misrepresenting mileage or tampering with an odometer can result in severe legal consequences, including a Class A misdemeanor charge.
Affidavit of Heirship: If you are selling a vehicle on behalf of a deceased relative, you may need to complete an affidavit of heirship to legally transfer the title without going through full probate.
Certificate of Title Bond: In rare cases where a title is missing and cannot be recovered through standard means, a certificate of title bond may be required to prove ownership.
Step 2: Negotiate the Sale Price and Create a Bill of Sale
Once you find a buyer, you must agree on a final sale price. While the state of Illinois does not strictly require a bill of sale for private transactions, it is highly recommended for your protection.
An Illinois bill of sale should include:
The names and addresses of both the buyer and seller.
The vehicle's make, model, year, and VIN.
The final sale price and the transaction date.
The signatures of both parties.
Having this document provides a record that the vehicle is no longer in your possession, protecting you from liability for any accidents or tickets the new owner may incur.
Step 3: Handle the Illinois Vehicle Sales Tax
In Illinois, the buyer is typically responsible for paying the Illinois vehicle sales tax, but as a seller, you should be aware of the forms involved to ensure the deal is closed correctly.
Private party transfers are reported using Form RUT-50 (Private Party Vehicle Use Tax Transaction Return). For 2026, the tax amounts are determined by the following criteria:
Vehicles under $15,000: The tax is based on the vehicle's age. For example, a 1-year-old vehicle may incur a tax of $465, while vehicles 11 years or older are taxed at a flat rate of $100.
Vehicles $15,000 or more: The tax is calculated based on the actual sale price. For a vehicle priced $15,000–$19,999, the tax is $850, increasing with price.
Family Transfers: If you are selling or gifting the car to a spouse, parent, or child, the tax is often a flat $15.
Step 4: License Plate Removal and Reporting the Sale
One of the most critical steps for a seller is license plate removal. In Illinois, license plates stay with the owner, not the vehicle.
Remove Your Plates: Always remove your license plates before the buyer drives away. You can transfer these plates to a new vehicle or dispose of them.
Report the Sale: To fully release yourself from liability, you must notify the Secretary of State that the vehicle has been sold. You can do this by mailing the "Seller's Report of Sale" (Form VSD 703) or the detachable strip from the bottom of your title to the SOS office.
Final Thoughts: A Smarter Way to Close the Sale
Selling a car is not only a transaction. It is a legal transfer of responsibility. When you follow the correct process and document each step, you protect yourself long after the sale is complete. Preparation and clarity turn a stressful task into a smooth and secure outcome.
Need to Ship a Car?
Once the paperwork is complete and the sale is secured, the final step is often getting the vehicle to its new owner. If your buyer is out of state or across Illinois, AmeriFreight Auto Transport can help.
With more than 20 years of experience as a licensed auto transport broker, AmeriFreight works with carefully vetted carriers that meet strict safety and insurance standards.
Get a free, no-obligation quote now.
Frequently Asked Questions (FAQs)
What is the safest way to accept payment for a private car sale in the Chicago area?
Use cash exchanged at a bank, a certified cashier’s check, or a verified bank transfer. Avoid personal checks and unknown wire transfers, which are common scam methods.
Does a private car sale in Illinois need to be notarized to be considered valid?
No. Illinois does not require notarization for a private sale. Some sellers still choose to notarize documents at a bank for added security.
Am I responsible for emissions testing before selling my car?
No. You do not need a new emissions test to sell the car, but the buyer cannot renew the registration if the test is overdue. Many gas vehicles four years or older require testing every two years.
What happens if I lose my Illinois car title before I find a private buyer?
If your title is lost or damaged, you must obtain a duplicate title by filing Form VSD 190 with the Secretary of State and paying the required fee. You cannot legally sell the car until the replacement title arrives.
Disclaimer
This information is for general guidance only and is not legal or tax advice. Illinois laws and fees may change. Always confirm details with the Illinois Secretary of State or a qualified professional.
