How To Transfer a Car Title in Illinois to a Family Member in 2026

In Illinois, the formal transfer of a motor vehicle title between family members is administered by the Illinois Office of the Secretary of State (ILSOS), Vehicle Services Department, which maintains the state's official records of vehicle ownership and establishes the procedures that govern all certificate of title transactions. A transfer may take the form of a gift conveyed without monetary consideration or a private sale at an agreed purchase price, and each carries distinct tax obligations under Illinois law.

What Does Transferring a Car Title to a Family Member in Illinois Mean?

Transferring a car title to a family member in Illinois means legally reassigning recorded vehicle ownership from one individual to another through the official processes administered by the Illinois Office of the Secretary of State. The certificate of title is the primary legal document establishing ownership of a motor vehicle in Illinois. Until a new certificate is issued in the recipient's name, the individual listed on the existing title remains the vehicle's owner of record.

Title transactions are processed by the Secretary of State directly and through the state's Electronic Registration and Title (ERT) System, which allows applicants to prepare and print an Application for Vehicle Transaction(s) (VSD 190) online. Completed applications are submitted either in person at a Secretary of State facility or by mail to the Vehicle Services Department in Springfield. Applications submitted through the ERT system must be delivered to the Secretary of State within 7 days of printing.

As of July 1, 2026, the Secretary of State is expanding its Electronic Lien and Titling (ELT) program, which requires all financial institutions processing five or more liens annually to transmit lien and title records electronically. This requirement applies to lienholders, not to private party vehicle transfers conducted without a lien. For private party title transfers, including those between family members, the existing ERT process remains applicable.

Eligible Family Members for Title Transfers in Illinois

Illinois does not provide a blanket sales or use tax exemption for vehicle transfers between family members. The Private Party Vehicle Use Tax applies to all transfers from one individual to another, including gift transfers. However, the tax rate is reduced to a flat $15.00 for transactions involving a narrowly defined group of immediate family members.

Under 625 ILCS 5/3-1002 and the 2026 RUT-5 Private Party Vehicle Use Tax Chart, the $15.00 reduced tax rate applies when the recipient acquires a motor vehicle from any of the following:

• Spouse (including a party to a civil union)
• Parent, mother, or father
• Brother or sister
• Child (including adopted children)

The $15.00 rate does not apply to step-relatives, in-laws, or grandparent-grandchild relationships. Transfers involving those relationships are subject to the full Private Party Vehicle Use Tax based on the vehicle's purchase price or fair market value.

For qualifying immediate family members listed above, the $15.00 rate applies regardless of the stated purchase price or fair market value and regardless of whether the transaction is structured as a gift or a sale. The Form RUT-50 must be completed and submitted with the applicable tax payment for all private party transfers, including those qualifying for the reduced $15.00 rate.

How To Transfer a Car Title as a Gift to a Family Member in Illinois

When a vehicle is conveyed to a family member as a gift with no monetary consideration, the process is as follows:

Step 1 — Confirm the status of any existing lien on the vehicle. If the vehicle is encumbered by an outstanding lien, the lienholder holds an interest in the title. As of July 1, 2026, financial institutions processing five or more liens annually are required to use the Electronic Lien and Titling (ELT) system. The donor must coordinate with the lienholder to obtain a formal lien release before or at the time of the transfer. A lien release document must accompany the title application.

Step 2 — Complete the title assignment on the reverse of the existing certificate of title. The donor must fully complete the assignment section on the back of the Illinois certificate of title. Required information includes:

• The recipient's full legal name as it will appear on the new title
• The recipient's current Illinois address
• The date of the transfer
• The purchase price or transfer value—enter "Gift" or "$0" in the price field
• The odometer reading, where federal disclosure is required
• The donor's legal signature

Step 3 — Certify the odometer disclosure. For vehicles with a model year of 2011 or newer and a gross vehicle weight rating (GVWR) under 16,000 pounds, odometer disclosure must be certified on the back of the title or on a separate Odometer Disclosure Statement for Title Transfers (VSD 333), consistent with federal National Highway Traffic Safety Administration (NHTSA) requirements.

Step 4 — Prepare a bill of sale. A bill of sale is not legally required for a gift transfer in Illinois, but it is strongly recommended as a record of the transaction. The document should include the vehicle year, make, model, and Vehicle Identification Number (VIN); the full legal names and addresses of both parties; the transfer date; and a clear notation that no monetary consideration was exchanged. Both parties should retain a signed copy.

Step 5 — Complete Form RUT-50. The recipient must complete Form RUT-50, Private Party Vehicle Use Tax Transaction Return, issued by the Illinois Department of Revenue. For a gift from a qualifying immediate family member (spouse, parent, sibling, or child), the applicable tax amount is $15.00, reported under the exception provision of Form RUT-50. The tax payment must be submitted separately from the title fee. Form RUT-50 is due within 30 days of the date the vehicle was acquired.

Step 6 — Prepare and submit Form VSD 190 to the Secretary of State. The recipient must complete the Application for Vehicle Transaction(s) (VSD 190) using the ERT System or by obtaining the form from a Secretary of State facility. The completed application, assigned certificate of title, Form RUT-50 with tax payment, and all supporting documents must be submitted:

• In person at a Secretary of State facility; or
• By mail to: Secretary of State, Vehicle Services Department, ERT Section, Room 424, 501 S. Second St., Springfield, IL 62756

Step 7 — Obtain new registration and license plates. The recipient must separately obtain Illinois registration plates in their own name. Because Illinois license plates are assigned to the vehicle owner rather than the vehicle, the prior owner's plates do not transfer with the vehicle.

How To Transfer a Car Title as a Sale to a Family Member in Illinois

When a family member purchases a vehicle at an agreed-upon price, the transfer follows the standard private-party sale process, with the tax rate determined by the parties' relationship.

Step 1 — Agree on a purchase price and complete the title assignment. The seller must fully complete the assignment section on the reverse of the existing Illinois certificate of title. Required fields include:

• The buyer's full legal name as it will appear on the new title
• The buyer's current Illinois address
• The agreed purchase price
• The date of sale
• The odometer reading, where required (see Step 3 of the gift transfer section above)
• The seller's legal signature

Step 2 — Prepare a bill of sale. A written bill of sale documents the terms of the transaction and should be retained by both parties. Per IDOR guidance, the bill of sale should include:

• The vehicle year, make, model, and VIN
• The full legal names and addresses of both the buyer and seller
• The agreed sale price
• The date of the transaction

Attaching a copy of the bill of sale to Form RUT-50 is recommended to establish the purchase price and reduce the likelihood of a subsequent tax notice from IDOR.

Step 3 — Release any existing lien, if applicable. If the vehicle carries an active lien, the lienholder must provide a written lien release before or at the time of the title transfer. Documentation of the lien release must accompany the title application.

Step 4 — Complete Form RUT-50. The buyer must complete Form RUT-50 and pay the applicable Private Party Vehicle Use Tax to IDOR. For a purchase from a qualifying immediate family member (spouse, parent, sibling, or child), the tax is $15.00. For all other family relationships, the tax is calculated per the RUT-5 chart based on the purchase price or fair market value.

Step 5 — Submit Form VSD 190 and all required documents to the Secretary of State. The buyer must complete the Application for Vehicle Transaction(s) (VSD 190) and submit it, along with all required documentation and fees, either in person at a Secretary of State facility or by mail.

Step 6 — Register the vehicle and obtain new license plates. The buyer must register the vehicle in their name and obtain Illinois license plates. The seller retains their existing plates and may transfer them to another vehicle they own.

What Documents Are Needed To Transfer a Car Title to a Family Member in Illinois

Required for All Transfers

• Current Illinois Certificate of Title — The existing title with the assignment section on the reverse fully completed by the transferring owner. Per the Secretary of State's application checklist, the buyer's name in the assignment area must match exactly the name on the VSD 190 application form, and the date of sale must be indicated.
• Application for Vehicle Transaction(s) (VSD 190) — The primary form for all title transactions, completed by the new owner. Available through the ERT System online or at any Secretary of State facility.
• Form RUT-50, Private Party Vehicle Use Tax Transaction Return — Required for all private party transfers, including gifts. Obtained at the Secretary of State facility at the time of titling or by calling IDOR's 24-hour Forms Order Line at 1-800-356-6302. Do not photocopy blank forms; each form carries a unique transaction number.
• Separate Tax Payment to IDOR — The tax due under Form RUT-50 must be paid by a separate check or money order made payable to the Illinois Department of Revenue. This payment is distinct from the title fee payment made to the Secretary of State.
• Valid Government-Issued Photo Identification — Required at time of submission.
• Odometer Disclosure — Required for vehicles with a 2011 or newer model year and a GVWR under 16,000 pounds. Disclosure may be certified on the back of the title or on a separate Odometer Disclosure Statement for Title Transfers (VSD 333).

Note: Illinois does not require title assignments or supporting documents to be notarized for standard private party transfers. The bill of sale, while strongly recommended, is not a universal legal requirement for gift transfers; however, IDOR recommends attaching a copy to Form RUT-50 to support the stated transaction value.

Required for Sale Transfers

• Bill of Sale or Form RUT-49 — Documents the terms of the transaction, including the VIN, names and addresses of both parties, sale price, and date. Form RUT-49 may be used in lieu of a bill of sale when filed alongside Form RUT-50.

Additional Documents That May Be Required

• Lien Release Documentation — If a lien is recorded against the vehicle, written evidence of the release from the lienholder must accompany the title application.
• Power of Attorney (RT 5) — Required when an authorized representative signs documents on behalf of an owner who is unable to appear in person.
• Duplicate and Corrected Titles Form (VSD 270) — Used when the original certificate of title has been lost, mutilated, or requires correction prior to the transfer.
• Affirmation of Correction (VSD 393) — Required when plates are being transferred, and the new vehicle is owned by fewer individuals than the previous vehicle registration reflected.

How To Transfer a Car Title to a Family Member Online in Illinois

Illinois title transfers cannot be completed entirely through the Electronic Registration and Title (ERT) System. No mechanism exists within the ERT System or any other ILSOS-administered platform through which the assigned title, tax payment, and all required documentation can be submitted and processed without an in-person appearance or a physical mail submission. The ERT System functions only as a pre-application tool; it accelerates document preparation but does not substitute for the mandatory in-person or mail-in filing step.

What's the Cost To Transfer a Car Title to a Family Member in Illinois?

All fees referenced below reflect the current ILSOS Vehicle Services Fees.

Title Fees

Registration Fees

Annual registration fees vary by vehicle type. The figures below are drawn from the ILSOS fee schedule and the VSD 522 Calendar Registration Fees schedule.

Illinois Private Party Vehicle Use Tax

For all private-party transfers between individuals, the Private Party Vehicle Use Tax is administered by the Illinois Department of Revenue. The tax rate varies based on the relationship between the parties and the vehicle's purchase price or fair market value, as set forth in the 2026 RUT-5 Private Party Vehicle Use Tax Chart.

For transfers between qualifying immediate family members (spouse or civil union partner, parent, brother, sister, or child, including adopted children), the tax is a flat $15.00, regardless of the vehicle's value. This $15.00 rate applies to both gift transfers and sale transfers within that relationship group.

For transfers between all other individuals — including non-qualifying family relationships — the tax is determined by the vehicle's purchase price or fair market value using the tiered schedules below:

Table A — Purchase price or fair market value under $15,000 (tax by vehicle age):

Table B — Purchase price or fair market value $15,000 or more (tax by purchase price):

When no purchase price is stated — as in the case of a gift to a non-qualifying party — the tax is calculated on the vehicle's fair market value, which may be obtained from a licensed dealer. Local government private-party vehicle-use taxes may also apply in certain jurisdictions. A $25.00 flat tax applies to motorcycles, motor-driven cycles, three-wheel or four-wheel ATVs, and motorized pedal cycles.

Contact Information

Illinois Office of the Secretary of State — Vehicle Services Department
501 S. 2nd St., Room 312, Springfield, IL 62756
Phone: (800) 252-8980
Official Website: Illinois Office of the Secretary of State — Vehicle Services