An Illinois vehicle title transfer after a private sale or gift takes three documents: the buyer files the Application for Vehicle Transaction (Form VSD 190) along with a use tax return (Form RUT-50) with the Illinois Secretary of State, and the seller signs over the existing title and files a Seller’s Report of Sale (Form VSD 703). The buyer pays the fees and the tax. The seller’s job is smaller but not optional, and skipping the report of sale is the mistake that causes the most trouble later.
What the Buyer Files: Form VSD 190
Form VSD 190 is the application that puts the vehicle in the new owner’s name. You can start it through the Secretary of State’s Electronic Registration and Title (ERT) system or pick up a paper copy at any Secretary of State facility.1ILSOS.gov. Apply for Registration and Title
The form asks for the Vehicle Identification Number, and you should cross-check it against the number printed on the existing title before submitting.2Illinois Legal Aid Online. How Do I Sell My Car? You will also enter the odometer reading at the time of sale, the full legal names and current addresses of all buyers, and the purchase price or a statement that the vehicle was a gift. The seller certifies the mileage and signs the back of the existing title to release ownership. Every buyer named on the new title signs the VSD 190.
Small errors cause real delays. A VIN that doesn’t match the vehicle, a misspelled name, or a missing signature can get the application kicked back. If the seller still has a loan on the vehicle, work through the lien before filing anything.
Odometer Disclosure
Federal law requires a written odometer disclosure on nearly every vehicle sale. Under 49 CFR Part 580, the seller records the exact mileage and certifies whether the reading is accurate, exceeds the odometer’s mechanical limits, or is known to be unreliable.3eCFR. 49 CFR Part 580 – Odometer Disclosure Requirements
Older vehicles are exempt. For 2010 model year or older vehicles, the exemption kicks in once at least 10 years have passed since January 1 of the model year. For 2011 model year or newer vehicles, the wait is 20 years. Vehicles with a gross vehicle weight rating above 16,000 pounds and non-self-propelled vehicles are also exempt. When the exemption applies, the seller still signs the title but skips the mileage certification.3eCFR. 49 CFR Part 580 – Odometer Disclosure Requirements
Paying the Vehicle Use Tax: Form RUT-50
Every private-party vehicle purchase in Illinois triggers a use tax reported on Form RUT-50, filed with the Illinois Department of Revenue. The form is due within 30 days of acquiring the vehicle, or 30 days after bringing an out-of-state purchase into Illinois.4Illinois Department of Revenue. RUT-50 Instructions for Private Party Vehicle Use Tax Transaction Most buyers hand in the RUT-50 at the same time they file the VSD 190 at a Secretary of State facility.
The tax depends on the purchase price. For vehicles sold for less than $15,000, the Department of Revenue publishes a flat-tax chart called the RUT-5 that assigns a specific dollar amount based on purchase-price brackets.5Illinois Department of Revenue. RUT-5 Private Party Vehicle Use Tax Chart for 2026 For vehicles sold at $15,000 or more, the tax is a percentage of the actual purchase price.6Illinois Department of Revenue. Use Tax Rates
If the reported purchase price looks suspiciously low compared to the vehicle’s fair market value, the Department of Revenue can assess tax based on fair market value instead. Claiming you paid $500 for a two-year-old truck is the kind of entry that draws a second look.
Vehicles Bought Out of State
If you purchased the vehicle outside Illinois and are bringing it in, you file Form RUT-25 instead of the RUT-50. The RUT-25 reports use tax on the purchase price, with a credit for any sales or use tax already paid to another state so you aren’t double-taxed.7Illinois Department of Revenue. RUT-25 Vehicle Use Tax Transaction Return Instructions
Gifts Between Family Members
Transferring a vehicle as a gift between immediate family members qualifies for a tax exemption under Illinois law. Qualifying relationships include spouses, parents, children, siblings, and grandparents. Instead of the standard use tax, the recipient pays a reduced flat fee. The exemption applies only to genuine gifts with no money changing hands. If you sell a vehicle to a family member at a steep discount and call it a gift to avoid the tax, the Department of Revenue can reclassify the transaction and assess the full tax plus penalties and interest.
Gifting a vehicle worth more than $19,000 can also trigger a federal gift tax reporting requirement. The giver, not the recipient, may need to file IRS Form 709 for that calendar year. Married couples can combine their exclusions to cover gifts up to $38,000 per recipient without filing.8Internal Revenue Service. Frequently Asked Questions on Gift Taxes No federal gift tax is owed until the giver exceeds their lifetime exemption, which for most people never happens, but the reporting requirement still applies.
What the Seller Files: Form VSD 703
This is the step sellers skip most often, and the one that causes the most headaches. When you sell or give away a vehicle titled in your name, file a Seller’s Report of Sale (Form VSD 703) with the Secretary of State right away.9ILSOS.gov. Seller’s Report of Sale The form records the buyer’s name and address and the date you handed over the vehicle.
Until that report is on file, the Secretary of State’s records still show you as the owner. Red-light camera tickets, unpaid tolls, parking violations, and even accident liability can land on the previous owner for something the new owner did. The VSD 703 creates a clear cutoff date in the state’s system. The form is attached to the bottom of most Illinois titles as a tear-off section, and you can also download it from the Secretary of State’s website. Keep a copy after mailing it in.
Preparing a Bill of Sale
Illinois strongly recommends a bill of sale for every private transaction. It should include the date of sale, the purchase price, and identifying details for the vehicle and both parties.10ILSOS.gov. Buying or Selling a Vehicle in Illinois It gives the buyer proof of the purchase price for the RUT-50 calculation and protects both sides if a dispute comes up later. There is no required state template. Both parties sign, and each keeps a copy.
Handling a Lien on the Title
If the seller still owes money on the vehicle, a lienholder’s name appears on the title, and the vehicle can’t be cleanly transferred until that lien is cleared. The seller pays off the remaining balance and obtains a lien release letter on the lienholder’s letterhead.11ILSOS.gov. Title and Registration Checklist – Loan Paid Many Illinois lenders participate in the Electronic Lien and Title (ELT) system, which allows them to release the lien electronically rather than mailing a paper document.12American Association of Motor Vehicle Administrators. Electronic Lien and Title
As a buyer, don’t hand over payment for a vehicle that still shows an active lien unless you have a clear plan for how the lien gets satisfied at the same time. The safest approach is to meet at the lienholder’s office or bank so the payoff, the lien release, and the title signing happen in the same transaction. An unresolved lien is one of the most common ways private-party deals go sideways.
Fees and Where to File
The current fee schedule from the Secretary of State for a standard passenger vehicle:
- Original title: $165
- Registration and license plates: $151
- Combined title and registration: $316
These are separate from the vehicle use tax paid on the RUT-50 or RUT-25. A duplicate or corrected title costs $50.13ILSOS.gov. Fees
You can file in person at any Secretary of State facility, where staff check your documents and collect payment on the spot. Facilities accept cash, checks, and major credit cards. If you can’t visit in person, mail the VSD 190, the assigned title, the tax form, and payment to the Secretary of State’s office in Springfield. Mailed submissions take longer. Either way, the state mails the new title to the address on the application once processing is complete.14ILSOS.gov. Frequently Asked Questions
Keep copies of every document you submit. If something gets lost in transit or a processing error occurs, your copies are the fastest way to resolve it. The seller should hang onto their copy of the VSD 703 and the bill of sale as proof the vehicle is no longer their responsibility.
Emissions Counties
Some Illinois counties require a vehicle emissions inspection before the Secretary of State will process registration. The Illinois EPA partners with the Secretary of State and can block registration for vehicles that haven’t passed the test.15Illinois EPA. Vehicle Emissions Testing Program This primarily affects vehicles registered in the Chicago metro area and parts of the Metro East region near St. Louis. If the vehicle you’re buying will be registered in one of those areas, factor the emissions test into your timeline. A vehicle that fails can’t be registered until repairs are made and it passes a retest.
When the Owner Has Died
The process depends on how the title was held. Illinois law presumes co-owners listed on a vehicle title hold the vehicle in joint tenancy with right of survivorship. If one owner dies, the survivor automatically owns the vehicle and clears the title by submitting a copy of the death certificate along with the properly assigned original title to the Secretary of State.16ILSOS.gov. Estates
If the deceased was the sole owner, the transfer usually runs through the estate. The executor or administrator named in the probate proceedings can sign the title over to a new owner. The Secretary of State requires an attorney’s affidavit on letterhead stating the name of the deceased, details of the estate, and the authority of the person signing. A certified copy of the death certificate accompanies the paperwork.17ILSOS.gov. Corrected Title – Deceased For smaller estates that don’t go through full probate, Illinois has a small estate affidavit process; confirm the current requirements and dollar thresholds with the Secretary of State’s office or an attorney.