Cars · State Guide

Leasing vs buying a car in Illinois

Illinois taxes car leases and purchases differently. Here's what that means for your total cost.

Sales tax: 6.25-10.25%

Illinois taxes lease payments as they come due. Chicago's combined rate of 10.25% (including the city's Retailer's Occupation Tax) is one of the highest in the country. Cook County overall reaches 10.25%, while DuPage County is 8.25%.

Practical tip: Chicago metro buyers often use suburban dealerships specifically to reduce the tax hit. The savings on a $35,000 vehicle inside vs outside Chicago city limits can exceed $700.

Run the numbers with Illinois tax rates

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