How to Transfer Car Ownership in Illinois: Complete Step-by-Step Guide

Step-by-Step: Illinois Title Transfer Process

Follow these steps in order to complete a legal and smooth vehicle title transfer with the Illinois Secretary of State.

Step 1: Complete the Assignment of Title

The Illinois Certificate of Title has an assignment section on the back. The seller must complete this section in full: print the buyer's name and address, the sale date, the selling price, and the current odometer reading. Both the seller and buyer must sign where indicated. Use a ballpoint pen and press firmly — this is a legal document. Do not use white-out or correction fluid anywhere on the title.

Step 2: Complete the Odometer Disclosure

For vehicles under 10 years old and under 16,000 lbs., federal law requires an Odometer Disclosure Statement. This is typically integrated into the title assignment section. The seller certifies the actual mileage at the time of sale. Falsifying this is a federal crime and grounds to rescind the sale.

Step 3: Prepare a Bill of Sale (Recommended)

While not always legally required in Illinois for private party sales, a Bill of Sale is highly recommended. It should include: both parties' full names and addresses, the vehicle's VIN, make, model, year, and mileage, the agreed sale price, and the date of sale. Both parties sign. This document protects both buyer and seller in any post-sale dispute and is required if applying for a tax exemption (such as a gift between family members using Form RUT-50).

Step 4: Buyer Applies for New Title at the Secretary of State

The buyer must visit an Illinois Secretary of State facility within 20 days of the sale to apply for a new title. Required documents include: the assigned title signed by the seller, completed Form RUT-50 (Private Party Vehicle Tax Transaction), valid government-issued photo ID, and payment for title and tax fees.

Step 5: Pay Illinois Private Party Use Tax

Illinois requires buyers to pay a Private Party Vehicle Use Tax based on the purchase price. As of the current rate schedule, purchases of $15,000–$19,999 are taxed at 7.25%, while purchases of $20,000–$24,999 are taxed at 8.25%, and $25,000 and above at 9.25%. This tax is paid when you apply for your new title using Form RUT-50. Keep your Bill of Sale as proof of the actual purchase price.

Step 6: Pay Title and Registration Fees

Illinois title transfer fees are approximately $150 for the title application. Registration fees vary by vehicle weight, starting around $151/year for standard passenger vehicles. Bring a check or money order — many Secretary of State facilities do not accept credit cards for title transactions.

Step 7: Receive Your New Illinois Title

The Illinois Secretary of State typically processes title applications and mails the new title within 6–8 weeks. You will receive a registration card and new license plates (or transfer your existing plates) at the facility. Keep your temporary registration receipt until your new title arrives.

Seller's Responsibility After the Sale

After selling your vehicle, complete a Vehicle Transaction Report (available on the Illinois Secretary of State website) within 7 days of the sale. This notifies the state that you are no longer the owner and protects you from liability for tickets, tolls, or accidents that occur after the sale date. Cancel or transfer your insurance on the sold vehicle promptly.