Lease vs Buy a Car in Illinois
When deciding to lease or buy a car in Illinois, local tax laws make a huge difference. Here is what you need to know about the 8.82% sales tax and upfront price lease taxation in Illinois.
State Tax Snapshot
Sales Tax: 8.82%
Lease Tax Method: upfront price
Note: Tax on full vehicle price, paid upfront
How Illinois Taxes Leases
Unlike buying, where you pay sales tax on the full negotiated price of the vehicle, leasing taxes vary wildly by state.
- Upfront Full Price: Illinois taxes the full purchase price of the vehicle, even if you are only leasing it. This severely hurts the value of leasing in this state.
Calculate for Illinois
Our calculator will automatically apply Illinois's tax rules to your deal.
Frequently asked questions
What is the car sales tax rate in Illinois?
The combined state and average local sales tax rate for vehicles in Illinois is 8.82%.
How does Illinois tax car leases?
Illinois uses the upfront price method. Tax on full vehicle price, paid upfront.
Is it better to lease or buy in Illinois?
In states with the upfront price method like Illinois, your choice depends heavily on your driving habits. Use our Lease vs Buy Calculator with Illinois preset to see your exact numbers.