Illinois vs Kentucky
Illinois and Kentucky compare differently in the short vs long run: Illinois costs $3,291 first year ($151 annual after), Kentucky costs $2,517 first year ($362 annual after).
Cost comparison
| Illinois | Kentucky | 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 | $2,517 | +$774 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $151 | $362 | −$211 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $2,975 | $2,100 | +$875 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 8.50% | 6.00% | +2.50 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $3,391 | $2,643 | +$748 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $251 | $488 | −$237 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $100 | $126 | −$26 |
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+.
Kentucky
Kentucky has a three-part vehicle cost structure: a small flat registration fee ($21/year), a 6% Motor Vehicle Usage Tax collected once at title transfer (Kentucky's name for sales tax), and an annual ad valorem property tax that varies significantly by county. The combined state + county + city + school district millage typically averages around $1.30 per $100 of NADA value, giving effective rates near 1.30% of vehicle value statewide. Notably, HB108 of 2026 begins a phased reduction of the STATE portion (currently 40¢/$100) down to 5¢/$100 by 2033, with complete elimination of the state portion in 2034 — but county and city portions are unaffected. EV and PHEV surcharge is $126/year (2025 rate per AFDC, indexed annually). A new $35,000 vehicle in a typical Kentucky county runs about $2,556 in first-year costs, with annual renewals around $407 dropping as the vehicle depreciates.
What this means for you
- Buying a new car: Kentucky is roughly $774 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 $211/year. Over a 5-year ownership period that's roughly $1,056 in renewal-fee savings alone.
- If you drive an EV: Illinois's EV surcharge ($100/year) is meaningfully lower than Kentucky's ($126/year) — a 21% savings on the EV fee alone.
- Structural differences: Kentucky charges an annual ad valorem property tax on vehicles (renewals stay expensive as long as you own the car), while Illinois does not — over a 10-year hold this can swing thousands of dollars toward Illinois.
Frequently asked questions
Is it cheaper to register a car in Illinois or Kentucky?
It depends on the timeframe. Illinois costs $3,291 first year and $151 annually after. Kentucky costs $2,517 first year and $362 annually after. One state may be cheaper upfront and the other cheaper long-term.
What is the sales tax difference between Illinois and Kentucky?
Illinois charges 8.50% combined sales tax on vehicles; Kentucky charges 6.00%. On a $35,000 purchase that's $2,975 in Illinois vs $2,100 in Kentucky.
Do Illinois and Kentucky both charge EV registration fees?
Illinois: $100/year EV surcharge. Kentucky: $126/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: Illinois Secretary of State • Kentucky Transportation Cabinet
Data last updated: 2026-05-23