Illinois vs Texas
Registering a new $35,000 vehicle costs about $2,296 in Texas versus $3,291 in Illinois — a $995 first-year advantage for Texas.
Cost comparison
| Illinois | Texas | 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 | $2,296 | +$995 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $151 | $76 | +$76 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $2,975 | $2,188 | +$788 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 8.50% | 6.25% | +2.25 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $3,391 | $2,496 | +$895 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $251 | $276 | −$25 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $100 | $200 | −$100 |
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+.
Texas
Texas has one of the simpler vehicle registration systems among large US states: a flat base registration fee of $50.75 for passenger vehicles under 6,000 pounds, with no annual ad valorem tax and no tiered fees by vehicle value. Where Texas gets interesting is the sales tax: motor vehicles are subject to a flat 6.25% statewide rate with NO local additions — a deliberate carve-out that makes Texas notably cheaper than its neighbors on a typical new-car purchase. Trade-in value is fully credited against the taxable amount. A new $35,000 vehicle bought from a Texas dealer (no trade-in) typically runs around $2,300-2,400 in first-year costs including sales tax, with annual renewals around $80.
What this means for you
- Buying a new car: Texas is roughly $995 cheaper than Illinois in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: Texas is cheaper to renew annually by about $76/year. Over a 5-year ownership period that's roughly $378 in renewal-fee savings alone.
- If you drive an EV: Illinois's EV surcharge ($100/year) is meaningfully lower than Texas's ($200/year) — a 50% 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 Texas?
Texas is cheaper to register a new $35,000 vehicle: $2,296 first year vs $3,291 in Illinois, and the gap continues into annual renewals.
What is the sales tax difference between Illinois and Texas?
Illinois charges 8.50% combined sales tax on vehicles; Texas charges 6.25%. On a $35,000 purchase that's $2,975 in Illinois vs $2,188 in Texas.
Do Illinois and Texas both charge EV registration fees?
Illinois: $100/year EV surcharge. Texas: $200/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: Illinois Secretary of State • TxDMV
Data last updated: 2026-05-23