A side-by-side of our Michigan, Ohio, Indiana, Illinois and Wisconsin guides, each built from that state's own agency pages and laws. Last checked 2026-10-31.
Short answer: in all five states the license plates stay with you, not the car: take them off before the buyer drives away. The buyer, not you, titles the car and pays the tax, and each state gives them a different deadline (Michigan 15 days; Ohio 30 days; Indiana 45 days; Illinois 20 days; Wisconsin 2 business days). If you trade in at a dealer instead, the dealer does the title work, and in all five the trade-in lowers the sales tax on your next car (Ohio: only when that car is new).
Tap a state for its full step-by-step guide and sources. Tax saved is the state rate on a $10,000 trade-in, 2026.
| State | Buyer titles within | Title fee | Trade-in saves (on $10,000) |
|---|---|---|---|
| Michigan | 15 days | $15 | $600 |
| Ohio | 30 days | $18-$23 by county | $575 (new car only) |
| Indiana | 45 days | $15 | $700 |
| Illinois | 20 days | $165 | $625 |
| Wisconsin | 2 business days | $214.50 | $500 |
Miss the deadline and Michigan, Ohio and Indiana add a late fee or penalty. Wisconsin's two business days is for a buyer who will drive the car.
Michigan. Keep a copy of the title and a record of the sale for at least 18 months; with it you aren't liable if the buyer never transfers the title. Private-sale tax the buyer pays: 6% of the price or fair market value, whichever is greater.
Ohio. Sign the title in front of a notary (or a deputy clerk at a title office), with the real price and mileage. Private-sale tax the buyer pays: 5.75% state rate plus the county rate.
Indiana. Apply for a credit or refund of part of the year's excise tax (State Form 55296), with proof of the sale or trade-in. Private-sale tax the buyer pays: 7% of the price.
Illinois. Plates: seller keeps them (move them to another car for $25, or return them). Your registration on the car ends when you sell it, with no refund. Private-sale tax the buyer pays: a flat amount by the car's age, or by price at $15,000 and up (Form RUT-50), not 6.25%.
Wisconsin. Plates: seller keeps them (move them to a similar car of yours, or destroy them). File a free seller notification with the DMV within 30 days (Wis. Stat. 342.41). Private-sale tax the buyer pays: 5% state tax plus county and city tax, collected by the DMV.
Write the real mileage. Federal law requires a written odometer disclosure when ownership changes; cars from model year 2011 on are covered until they're 20 years old.
Clear the loan first. A title with a lien on it can't move to the buyer until the lender releases it. A dealer pays the loan off as part of a trade-in; if you owe more than the car is worth, see Owe more than it's worth?
Never hand over a signed, blank title. Fill in the buyer, price, date and mileage before you sign it over.
Keep proof of the sale. A copy of the signed title and a bill of sale with the date, price, mileage and buyer.
Compare both ways. A private sale has to beat your trade-in value plus the tax a trade-in saves. Trade in or sell it yourself? · Trade-in tax in every state we've checked
Do you keep your license plates when you sell a car?
Yes, in Michigan, Ohio, Indiana, Illinois and Wisconsin: the plates belong to you, not the car, so take them off before the buyer drives away. Illinois lets you move them to another car for $25 or return them; in Wisconsin you move them or destroy them.
How long does the buyer have to title the car?
Michigan 15 days; Ohio 30 days; Indiana 45 days; Illinois 20 days; Wisconsin 2 business days. Titling is the buyer's job; as the seller you sign the title over and keep proof of the sale.
Does a car title need to be notarized when you sell?
In Ohio, yes: the seller signs in front of a notary or a deputy clerk at a title office. The official seller instructions we used for Michigan, Indiana, Illinois and Wisconsin don't call for one.
How much sales tax does a $10,000 trade-in save?
At the state rate: Michigan about $600; Ohio about $575 (new car only); Indiana about $700; Illinois about $625; Wisconsin about $500. A private sale doesn't get this break in these states.
Do I have to tell the state I sold my car?
In Wisconsin, yes: file the free seller notification within 30 days. Our guides for the other four don't list a seller report; keep a copy of the signed title and a bill of sale (Michigan says at least 18 months).
Rules and fees change; each state guide links its sources, and you should check them before you sell. Not in one of these states? See what your car is worth and the trade-in tax rule for your state.
How we calculate it · Trade-in tax by state · What dealers make · Trade in or sell? · What dealers check · Owe more than it's worth? · When to sell · Selling a car by state · Stop calls & texts