Illinois Car Loan & Lease Guide 2026
Everything you need to know about buying or leasing a car in Illinois (IL) — sales tax, loan rates, incentives, and free calculators.
Illinois Car Sales Tax (2026)
Illinois state sales tax is 6.25%. Chicago adds an additional 1.75%–2.75%, making the combined rate up to 10.25% in some areas.
Official Illinois DMV: www.ilsos.gov/departments/vehicles/
Illinois Car Buying Incentives & Programs (2026)
Illinois offers up to $4,000 rebate for new EV purchases (EV Rebate Program). Federal tax credit up to $7,500 also applies. Income limits apply for state rebate.
Quick Car Affordability Calculator — Illinois
Estimate how much car you can afford in Illinois, including sales tax (6.25% state rate).
Illinois Car Buying FAQ
What is the sales tax on a car in Illinois?
The state sales tax in Illinois is 6.25%. With local taxes, the total rate ranges from 6.25% to 10.25%. This means buying a $35,000 car in Illinois could cost $2188–$3588 in sales tax alone.
What is the average car loan rate in Illinois?
The average auto loan rate in Illinois is approximately 7.2% (based on the state's average credit score of 705). Rates vary by credit score: 750+ can get 5–7%, 650–749 pays 7–10%, and below 650 may see 10%+.
Are there EV incentives in Illinois?
Illinois offers up to $4,000 rebate for new EV purchases (EV Rebate Program). Federal tax credit up to $7,500 also applies. Income limits apply for state rebate.
How much car can I afford in Illinois?
Use the calculator above to estimate your budget. As a rule of thumb, your total car payment (loan + insurance) should not exceed 15–20% of your monthly take-home pay. In Illinois, remember to factor in the 6.25% state sales tax when calculating your total budget.