BillOfSaleNow

Just Sold My Boat in Illinois — What’s Next? (2026)

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Reviewed against state DMV requirementsLast reviewed: May 20266 min readEditorial policy
You just sold a boat in Illinois. The sale is not legally complete until you file a release of liability with Illinois DMV and the buyer titles the boat within 20 days. Illinois charges 6.25% sales/use tax at title transfer (buyer pays).

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Illinois boat sale facts

Titling agencyIllinois DMV
Title transfer deadline20 days from sale
Release of liabilityFile with Illinois DMV within 5 days
Buyer’s sales / use tax6.25% (Private vehicle use tax applies based on purchase price bracket)
Bill of sale notaryNot required
Title fee (buyer pays)$150
Boat identifierHIN (Hull Identification Number)

Your Illinois boat post-sale checklist

  1. 1

    Keep your signed Illinois bill of sale

    This is your proof that you sold the boat on the sale date. If the buyer gets a ticket, is in an accident, or fails to transfer the title within 20 days from the sale date, the Illinois bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years.

  2. 2

    File a release of liability with Illinois DMV

    Most Illinois sellers file this online through Illinois DMV within 5 days of the sale. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents become the buyer's responsibility, not yours. Illinois requires the buyer to title the boat within 20 days — your release filing protects you if the buyer misses that deadline.

  3. 3

    Cancel or transfer your boat insurance

    Contact your insurer the same day you hand over the keys. Illinois does not require you to maintain insurance on a vehicle you no longer own, but you must not cancel before the sale is complete. If you are replacing the boat with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.

  4. 4

    Remove your registration decal and registration decal

    In Illinois, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Illinois boating authority. The buyer will register the vessel in their name and receive new decals.

  5. 5

    Verify the 20-day title transfer window

    Illinois requires the buyer to retitle the boat at Illinois DMV within 20 days of the sale date. If you have not received confirmation that the title has been transferred by day 25, contact Illinois DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.

  6. 6

    Confirm your Illinois tax obligations (seller's side)

    Illinois charges 6.25% sales/use tax on private-party boat sales — the buyer pays this at Illinois DMV when titling. Private vehicle use tax applies based on purchase price bracket. Sellers generally do not owe Illinois sales tax, but if the boat sold for more than your original purchase price you may owe federal capital gains tax. Consult a tax advisor.

  7. 7

    Watch for liens or loan payoff confirmation

    If you had a loan on the boat, confirm the lender received the buyer's payoff and has released the lien on the Illinois title before you deliver the title. Illinois uses VSD 790 as the lien release form — your lender will file this with Illinois DMV to clear the title record.

Boat-specific note

Boats use a Hull Identification Number (HIN) instead of a VIN — confirm the HIN on the transom matches the title and bill of sale. If the vessel is U.S. Coast Guard documented (5+ net tons, typically 26ft+), file an abstract-of-title transfer with the National Vessel Documentation Center in addition to state registration.

Illinois lien release procedure

  1. Lienholder completes VSD 790 (Notice of Lien Release).
  2. Owner submits VSD 790 with current title to the Secretary of State.
  3. Pay $15 title fee.
  4. Receive new title with lien removed.

Frequently Asked Questions — Illinois

How long do I have to file a release of liability in Illinois?

Illinois sellers should file a release of liability with Illinois DMV within 5 days of the sale. Most Illinois sellers can file this online directly through Illinois DMV. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents fall on the buyer.

What is the Illinois title transfer deadline for a boat?

Illinois requires the buyer to title the boat within 20 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.

Do I owe Illinois sales tax on the boat I just sold?

Illinois charges 6.25% sales/use tax on private-party boat sales. Private vehicle use tax applies based on purchase price bracket. The buyer typically pays this at Illinois DMV when titling — sellers generally owe no Illinois sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.

Does Illinois require a notary on the boat bill of sale?

No. Illinois does not require notarization for a private boat bill of sale. A signed bill of sale with both parties' full names, addresses, signatures, and the date is sufficient for Illinois DMV.

How does the buyer register the boat in Illinois?

The buyer brings the signed bill of sale and endorsed title to Illinois DMV, pays the title fee (~$150) plus 6.25% sales/use tax, and receives a new Illinois title in their name. Transfer must be completed within 20 days of the sale date.

What is U.S. Coast Guard documentation and do I need to file anything with the USCG?

USCG documentation is a federal title for vessels 5+ net tons (typically 26ft+) used in commerce or international waters. Recreational boats under 26 feet usually do not need USCG documentation — state registration and a bill of sale are sufficient. If your boat IS USCG-documented, file an abstract of title transfer with the National Vessel Documentation Center in addition to state registration.

Where do I find the HIN on my boat?

The Hull Identification Number (HIN) is a 12-character serial stamped on the starboard side of the transom (back of the boat) above the waterline. It is also recorded on the title. Confirm the HIN on the transom matches your bill of sale and title before the buyer pulls away on the trailer.

Used BillOfSaleNow for your sale?

Quick review helps other Illinois sellers find a tool that protects them.

Source: Illinois DMV · Last verified 2026-05-07

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