Illinois vs Indiana
Illinois and Indiana compare differently in the short vs long run: Illinois costs $3,291 first year ($151 annual after), Indiana costs $2,849 first year ($378 annual after).
Cost comparison
| Illinois | Indiana | Difference | |
|---|---|---|---|
| First-year total All-in cost to register a new $35,000 gas vehicle for the first time, including sales tax, title, and registration. | $3,291 | $2,849 | +$442 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $151 | $378 | −$227 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $2,975 | $2,450 | +$525 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 8.50% | 7.00% | +1.50 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $3,391 | $3,070 | +$321 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $251 | $599 | −$348 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $100 | $221 | −$121 |
How each state structures it
Illinois
Illinois has one of the highest base passenger registration fees in the country at $151/year, with a similarly high one-time title fee of $165. Combined with sales tax that can hit 10%+ in the Chicago metro area, Illinois is among the most expensive states for vehicle ownership. The state sales tax is 6.25%, but local additions can push combined rates much higher — Cook County and Chicago add roughly 3% combined, putting central Chicago at 9.5-10.25%. Illinois restored full trade-in credit on vehicle sales tax in January 2022 after a brief period (2020-2021) when trade-in credit was capped at $10,000. Electric vehicles pay an additional $100/year surcharge, bringing the BEV registration to $251/year. A new $35,000 vehicle in a 1%-local-rate county runs about $2,850-2,900 in first-year costs; in central Chicago that climbs to $3,900+.
Indiana
Indiana's vehicle costs are mid-range: a small BMV registration fee ($21.50 first time, $15 renewals), a flat 7% statewide sales tax with no local additions, plus an annual Vehicle Excise Tax that replaces the property tax most states charge on vehicles. The excise tax is structured as 17 MSRP brackets with mostly flat amounts (Class 14 at $35,000 MSRP pays about $324/year), declining only for Class 17 vehicles over $42,500. County wheel taxes add $0-$50/year depending on where you live. Indiana is one of about 30 states with an EV surcharge — approximately $221/year for battery EVs and $74/year for hybrids/plug-in hybrids (both indexed annually). A new $35,000 vehicle in a typical $30 wheel-tax county runs about $2,851 in first-year costs, with annual renewals around $379.
What this means for you
- Buying a new car: Indiana is roughly $442 cheaper than Illinois in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: Illinois is cheaper to renew annually by about $227/year. Over a 5-year ownership period that's roughly $1,133 in renewal-fee savings alone.
- If you drive an EV: Illinois's EV surcharge ($100/year) is meaningfully lower than Indiana's ($221/year) — a 55% savings on the EV fee alone.
- Structural differences: Neither state imposes an annual ad valorem vehicle property tax, so renewal costs stay relatively flat after the first year for both.
Frequently asked questions
Is it cheaper to register a car in Illinois or Indiana?
It depends on the timeframe. Illinois costs $3,291 first year and $151 annually after. Indiana costs $2,849 first year and $378 annually after. One state may be cheaper upfront and the other cheaper long-term.
What is the sales tax difference between Illinois and Indiana?
Illinois charges 8.50% combined sales tax on vehicles; Indiana charges 7.00%. On a $35,000 purchase that's $2,975 in Illinois vs $2,450 in Indiana.
Do Illinois and Indiana both charge EV registration fees?
Illinois: $100/year EV surcharge. Indiana: $221/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: Illinois Secretary of State • Indiana BMV
Data last updated: 2026-05-23