How to Transfer a Car Title to a Family Member in Illinois

To transfer a car title to a family member in Illinois, the current owner signs over the original title, both parties complete the Application for Vehicle Transaction(s) (Form VSD 190) and the Private Party Vehicle Use Tax Transaction (Form RUT-50), and the new owner submits everything to the Secretary of State with a $165 title fee. If the recipient is a spouse, parent, child, brother, or sister, the use tax is a flat $15 instead of the price- or value-based rate that applies to other transfers.

Which Relatives Qualify for the $15 Use Tax

Illinois charges a private party vehicle use tax on every individual-to-individual transfer, but transfers between certain close relatives get a flat $15 rate. The qualifying relationships are narrower than most families assume: spouse (including civil union partner), parent, child (including adopted children), brother, and sister.1Illinois Department of Revenue. RUT-5 Private Party Vehicle Use Tax Chart for 2026

Step-parents, step-children, in-laws, grandparents, and grandchildren do not qualify. A car going to a grandchild, for example, is taxed on the purchase price or the vehicle’s age-based value, not at $15. Confirm the relationship before you plan around the reduced rate.

You claim the exemption on the RUT-50 by marking the family-member exception box and entering $15 as the tax due.2Illinois Department of Revenue. RUT-50 Instructions for Private Party Vehicle Use Tax Transaction

What You Need Before You File

Both people need to gather a few items before the transfer can go through.

  • The original Illinois Certificate of Title, with the assignment section on the back signed by the current owner and the new owner’s name entered exactly as it appears on the VSD 190.
  • A completed Application for Vehicle Transaction(s) (VSD 190), signed by both parties, with the VIN, year, make, model, and body type filled in.
  • An odometer disclosure on the VSD 190 showing the current mileage and whether it reflects actual mileage, is not actual, or exceeds the odometer’s mechanical limits. Federal rules require this on most vehicles less than 20 model years old.3eCFR. Part 580 Odometer Disclosure Requirements
  • A completed RUT-50 showing the $15 family-transfer tax.2Illinois Department of Revenue. RUT-50 Instructions for Private Party Vehicle Use Tax Transaction
  • Proof of Illinois vehicle insurance in the new owner’s name.4Illinois Secretary of State. Title and Registration Checklist – New Vehicle
  • A valid Illinois driver’s license or state ID for the new owner.4Illinois Secretary of State. Title and Registration Checklist – New Vehicle

Before you file, check that the VIN on the title matches the VIN stamped on the dashboard or door jamb. Mismatches send the paperwork back.5Illinois Secretary of State. Apply for Registration and Title

What It Costs

As of 2026, the Illinois charges are:

For a standard gas vehicle where the new owner needs a title and new plates, plan on about $331 all in. If the new owner is moving plates over from another car they already own, the full registration fee doesn’t apply again, though a transfer fee can.

Where to Submit the Paperwork

In Person

Bring the signed title, VSD 190, RUT-50, proof of insurance, your ID, and payment to a Driver Services facility. Credit and debit cards are accepted in person, and a clerk can flag mistakes before they slow the transfer down.

By Mail

Send the completed forms, original title, insurance proof, and payment by check or money order to:

Illinois Secretary of State
Vehicle Services Department
501 S. Second St., Rm. 300
Springfield, IL 627568Illinois Secretary of State. Title and Registration Checklist – Loan Paid

Cash is not accepted through the mail. Processing typically runs two to four weeks, and the new title is mailed to the new owner.

If There’s Still a Loan on the Car

A vehicle with an active lien can’t be retitled until the loan is paid off. Contact the lender, pay the balance, and ask for a lien satisfaction letter on the lender’s letterhead. Include that letter with the transfer application, leave the lienholder section blank on the new application, and keep a copy for yourself. Without the release, the Secretary of State will reject the transfer.8Illinois Secretary of State. Title and Registration Checklist – Loan Paid

If the Title Is Lost or Damaged

You can’t transfer a car without the original title. The current owner (and only the current owner) can apply for a duplicate by submitting a VSD 190 with the duplicate title option selected and paying a $50 fee.9Illinois Secretary of State. Duplicate Titles Once the duplicate arrives, the family transfer proceeds normally. Build in extra time, since you’re essentially running two transactions back to back.

If the Owner Has Died

How title moves out of a deceased relative’s name depends on how the estate is being handled.

If the estate is in probate, the personal representative submits certified letters of administration or letters testamentary, a copy of the death certificate, and a completed VSD 190. If probate isn’t happening and the estate meets the Illinois Probate Act’s conditions, a Small Estates Affidavit can substitute, along with the death certificate and VSD 190.10Cornell Law School. Illinois Admin Code Title 92 1010.150 – Transferring Certificates of Title Upon the Owners Death

A vehicle held in joint tenancy with right of survivorship is simpler: the surviving joint tenant sends in the death certificate, the original title (no assignment needed), and an application for a corrected title removing the deceased owner’s name. From there, the surviving owner can transfer to another family member the ordinary way.11Illinois General Assembly. Illinois Admin Code Section 1010.150 – Transferring Certificates of Title Upon the Owners Death

Illinois also allows a transfer-on-death beneficiary named on the title itself. If the deceased owner made that designation, the vehicle passes to the beneficiary outside probate; the beneficiary still needs a death certificate and a completed VSD 190 to issue a new title.12Illinois General Assembly. 625 ILCS 5/3-104

Insurance and Handoff

The new owner needs active Illinois coverage on the vehicle before the Secretary of State will process the transfer. Insurers commonly give 7 to 30 days to add a newly acquired vehicle to an existing policy, but the window varies, so call your carrier on or before the day of transfer rather than assuming a full month. For the person giving up the car, keep your own insurance in place until you’ve confirmed the transfer has posted. During the two-to-four-week mail processing window, the car is still registered to you, and so is any ticket or liability tied to it.

Federal Gift Tax

Giving a vehicle to a family member for free or well below fair market value is a gift in the eyes of the IRS. For 2026, the annual exclusion is $19,000 per recipient, and gifts at or below that amount don’t require any federal filing.13Internal Revenue Service. Whats New – Estate and Gift Tax Most family cars fall under that ceiling. If the fair market value is higher, the donor files IRS Form 709. Filing doesn’t automatically mean tax is owed; the excess counts against the donor’s lifetime gift and estate tax exemption, but the reporting is required.14Internal Revenue Service. Instructions for Form 709