Illinois Bill of Sale Template

A bill of sale in Illinois is a legal document that records the transfer of personal property — most commonly a vehicle, boat, or other titled asset — from a seller to a buyer. The document establishes the purchase price, condition, and transfer date, serving as critical evidence for DMV title transfer, sales tax calculation, and liability protection. In Illinois, a bill of sale is required by the Secretary of State when the selling price is below the fair market value — the bill of sale establishes the actual purchase price for tax purposes. Regarding notarization, not required for private-party vehicle sales, but a notarized bill of sale is recommended for high-value transactions and required for certain watercraft. Illinois uses no state-mandated bill of sale form — the Secretary of State accepts any written bill of sale that includes the required information. The purchase price stated on the bill of sale directly determines the sales tax owed: private-party vehicle sales are subject to the private-party vehicle use tax based on purchase price (tax rate varies by price bracket: $25 for vehicles under $2,000, up to $1,500 for vehicles $30,000+).

Without a bill of sale, both parties face significant risks. The seller remains liable for parking tickets, tolls, and accidents involving the vehicle until title transfer is complete. The buyer lacks proof of the agreed purchase price and may be assessed sales tax on the vehicle's full fair market value instead. For vehicles, a bill of sale should always accompany the signed title certificate. For items without titles (furniture, electronics, equipment), the bill of sale is the only legal proof of the transaction. Use our bill of sale generator to create a Illinois-compliant document that protects both parties. If the buyer is financing the purchase, pair it with a promissory note documenting the payment terms.