Just Sold My Car in Illinois — What’s Next? (2026)
Need Illinois bill of sale documentation?
If you haven’t generated a Illinois-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Illinois Car Bill of Sale →Illinois car sale facts
| Titling agency | Illinois DMV ↗ |
| Title transfer deadline | 20 days from sale |
| Release of liability | File with Illinois DMV within 5 days |
| Buyer’s sales / use tax | 6.25% (Private vehicle use tax applies based on purchase price bracket) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $150 |
| Car identifier | VIN |
Your Illinois car post-sale checklist
- 1
Keep your signed Illinois bill of sale
This is your proof that you sold the car 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
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 car within 20 days — your release filing protects you if the buyer misses that deadline.
- 3
Cancel or transfer your auto 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 car with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.
- 4
Remove your license plates
In Illinois, plates go with the seller — not with the car. Remove the plate(s) before the buyer drives or rides away. You can return them to Illinois DMV or transfer them to your next vehicle.
- 5
Verify the 20-day title transfer window
Illinois requires the buyer to retitle the car 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
Confirm your Illinois tax obligations (seller's side)
Illinois charges 6.25% sales/use tax on private-party car 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 car sold for more than your original purchase price you may owe federal capital gains tax. Consult a tax advisor.
- 7
Watch for liens or loan payoff confirmation
If you had a loan on the car, 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.
Illinois lien release procedure
- Lienholder completes VSD 790 (Notice of Lien Release).
- Owner submits VSD 790 with current title to the Secretary of State.
- Pay $15 title fee.
- 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 car?▾
Illinois requires the buyer to title the car 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 car I just sold?▾
Illinois charges 6.25% sales/use tax on private-party car 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 car bill of sale?▾
No. Illinois does not require notarization for a private car 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 car 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 if the buyer hasn't transferred the title yet?▾
In most states this is the buyer's responsibility, not yours. Filing a release of liability with your state DMV is the seller-side protection — it removes you from records as the registered owner so any post-sale tickets, accidents, or tolls fall on the buyer regardless of when the title is actually transferred.
Do I need to keep the bill of sale after the sale is complete?▾
Yes — keep your signed bill of sale for at least 5 years. If a parking ticket, toll, or accident occurs after the sale but before the buyer transfers the title, the bill of sale is your proof that the car was sold on the sale date. Store a scan and the original.
Used BillOfSaleNow for your sale?
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Source: Illinois DMV ↗ · Last verified 2026-05-07