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You would use the tax rate of the city in which the car would be registered. So, if you bought a car in Chicago, but live and register your car in Schaumburg, the dealer or st â¦ ate would use the Schaumburg tax rate when calculating your tax. The Illinois sales tax on new cars is 6.25 percent of the sale price of the car. The car dealer collects the sales tax and enters it on form ST0556. Lake county Illinois sales tax?
Use a Trade In to Save on Used Car Tax With sales and use tax rates that often approach 10%, Illinois demands a lot from car buyers at the time of purchase. Buy a $20,000 used car and do the math - that's about $2000 in local and state sales taxes. So, reduce the amount of sales tax you will be required to pay by offering your older vehicle to the dealership as a trade in.