Illinois Car Sales Tax 2025. Effective january 1, 2025, certain taxing jurisdictions have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. Illinois imposes tax on the cost of items of tpp acquired for leasing purposes but doesn’t charge tax on the charges to the rental customer, with some exceptions.

The landscape of sales and use tax compliance is constantly evolving, particularly for businesses operating in illinois. Effective january 1, 2025, illinois will begin taxing lease transactions, which will bring illinois more in line with most other states’ sales tax treatment of leases.