Illinois Vehicle Bill of Sale

Is a bill of sale required to sell a car in Illinois?

The Illinois Secretary of State does not strictly require a separate bill of sale if the purchase price is recorded on the title assignment, but a bill of sale is strongly recommended and may prevent future tax notices. The Illinois Department of Revenue requires every private-party vehicle buyer to file Form RUT-50 (Private Party Vehicle Use Tax Transaction Return), and attaching a copy of the bill of sale to the RUT-50 is the simplest way to document the purchase price. Form RUT-49 (Vehicle Transaction Affidavit) can also be used in lieu of a bill of sale if needed.

Does an Illinois bill of sale need to be notarized?

No. Illinois does not require notarization of a vehicle bill of sale or the title assignment. The signed title and signed bill of sale are sufficient for the transfer. The buyer and seller do not need to appear together at the Secretary of State's office — the seller signs over the title, and the buyer takes the signed title and supporting documents to a Secretary of State facility to complete the registration.

How does the Private Party Vehicle Use Tax work?

Illinois taxes private-party vehicle sales differently from dealer sales. Instead of a standard sales tax percentage, the Private Party Vehicle Use Tax uses a tiered table based on the vehicle's model year for purchases under $15,000 — older vehicles owe less tax. For vehicles with a purchase price of $15,000 or more, the tax is calculated as a percentage of the purchase price. The buyer files Form RUT-50 and pays the tax when applying for the title, with payment due within 30 days of the purchase date.

Buyers who live within the corporate limits of the City of Chicago or in Cook County may owe additional local private-party vehicle use taxes on top of the state amount. The RUT-6 reference guide identifies which local jurisdictions impose additional taxes. Trade-in deductions are not allowed on private-party sales reported on the RUT-50 — that benefit applies only to dealer transactions.

What information should an Illinois vehicle bill of sale include?

A complete Illinois vehicle bill of sale should include the full legal names and addresses of the buyer and seller, the date of sale, the agreed purchase price, and the vehicle's year, make, model, body style, color, and Vehicle Identification Number (VIN). The odometer reading must be certified on the back of the title at the time of sale, satisfying federal disclosure requirements under 49 CFR Part 580 for vehicles less than 20 model years old.

What should the seller do after the sale?

The seller must remove their license plates from the vehicle — Illinois plates belong to the owner, not the vehicle. The seller must also file a Seller's Report of Sale (Form VSD 703) with the Secretary of State immediately after the sale. Filing the VSD 703 is legally required and protects the seller from liability for parking tickets, tolls, and violations incurred by the buyer after the transfer date. The buyer has 20 days from the purchase date to visit a Secretary of State facility with the signed title, Form RUT-50, Form VSD 190 (Application for Vehicle Transaction), and proof of insurance to complete the title transfer and registration.

What if the vehicle has multiple owners?

If the vehicle is titled to more than one person, all owners on the title must sign the bill of sale. Use the "Add a co-seller" option on the form to add the second seller's name and address. Both sellers' names and signature lines will appear on the document. For electronic signing, each co-owner can sign on the same device in sequence, or the document can be passed from one device to another via QR code or shared link. Both buyers can likewise be named on the bill of sale using the "Add a co-buyer" option.