Buying guide

Buying a private jet or helicopter and keeping it in Illinois: the 6.25% Aircraft Use Tax, the 15-day fly-away rule, charter rolling stock, and IDOT registration

Updated November 3, 2026 · Written by the House of Biz & Company Editorial Team · General information, not legal or financial advice

Your own aircraft means your schedule, your airports, your cabin. For an owner who will keep it in Illinois, the state has its own say on the purchase, and when the seller is not a dealer it arrives after closing, as a return you file yourself. Here is how the discerning buyer reads the Aircraft Use Tax, the exemptions, and the state registration before the wheels touch down at home, from the statutes and the state’s own forms.

We don’t sell, broker, consign, finance, charter, or manage aircraft, and we never sell, broker, consign, finance, or arrange the sale of any vehicle. Only for the Wealthy is a publisher, not a dealer (see 625 ILCS 5/5-101). This is general information drawn from the Illinois Aircraft Use Tax Law, the Use Tax Act, the Illinois Aeronautics Act, Illinois Department of Revenue and Department of Transportation forms and instructions, and one FAA rule, all cited below. It is not tax or legal advice, and we don’t prepare returns. We are not affiliated with any agency, seller, or broker, and we earn nothing from anyone named here.

The tax that arrives with the aircraft

An aircraft of your own is the purest form of freedom money can buy: your schedule, your airports, your cabin. For an owner who lives in Illinois or plans to keep the airplane here, the state has its own word on that purchase, and it is easy to miss because it doesn’t arrive at closing. When the seller is a private party, an owning company, or anyone else who is not in the business of selling aircraft, no one collects Illinois tax at the table. The buyer owes it, on a return, within 30 days, and the Illinois Department of Transportation won’t register the aircraft until it is paid or shown not to be due [3][5]. Here is how the rules work, from the statutes and the state’s own forms, so the arrival of your jet, turboprop, or helicopter is as smooth as the flight home.

1. Who sold it to you decides the form

Illinois uses a different return depending on who the seller is, and each has its own clock [2][5][6]. “Aircraft” here is broad: any device used or designed to carry humans in flight, and every device the FAA requires to be licensed as an aircraft, from airplanes and helicopters to gliders, balloons, and seaplanes [5].

You bought or leased from	Return	Who files, and when
An Illinois dealer, or a registered Illinois leasing company, lender, or other retailer	ST-556 (ST-556-LSE for a lease)	The seller files, no later than 20 days after delivery [2]
An out-of-state dealer or retailer not registered to collect Illinois tax	RUT-25 (RUT-25-LSE for a lease)	You file, no later than 30 days after the aircraft is brought into Illinois or the date of purchase [2][6]
A private party, or a company that is not in the business of selling aircraft at retail	RUT-75	You file, within 30 days after the acquisition or the date the aircraft is brought into Illinois, whichever is later [3][5]
A gift, donation, or other transfer, including a merger or other business reorganization	RUT-75	You file, on the same 30-day clock [2][5]

The tax on that last group, private and non-retail acquisitions, is the Aircraft Use Tax: a tax on the privilege of using in Illinois an aircraft acquired by gift, transfer, or purchase after June 30, 2003 [3]. The department’s own note matters for the sophisticated buyer: an “other party” includes companies that obtained their aircraft from a related or unrelated party who is not a retailer, and that includes mergers and other business reorganizations [2]. A transfer between your own entities can fall squarely within it.

Buying through a broker. The department spells out three cases [2]. If the broker never takes title and the seller is a private party, it is an Aircraft Use Tax purchase on RUT-75. If the broker never takes title and the seller is an aircraft retailer, the retail forms apply (ST-556 or RUT-25). If the broker takes title and sells the aircraft to you, a retail sale has occurred, and again the retail forms apply. Ask, before you sign, whose name will be on the FAA bill of sale to you. Our guide to title and registration covers the federal side of that document.

2. What the 6.25% is charged on

The Aircraft Use Tax rate is 6.25% of the selling price [3]. Three rules shape the number.

Never less than fair market value. The selling price can’t be less than the aircraft’s fair market value on the date of purchase or the date it is brought into Illinois, whichever is later [3]. For a gift or a transfer, the tax is on fair market value [3]. The department says it has the authority to determine the fair market value if its review raises a question [2], and the law lets it share the price, N-number, year, make, model, purchase date, and hours of operation with contractors who help it test reported prices [3].
Everything you gave counts. For an aircraft, the selling price is the reasonable consideration received, valued in money, cash, credits, property, services, and so on [5].
No trade-in allowance. The department states plainly that the Aircraft Use Tax has no provision for a trade-in allowance [4]. If you are acquiring a share of an aircraft, the tax is based on the purchase price or fair market value of the share [4][5]; our guide to jet cards, fractional shares, and charter explains what a share is.

By way of illustration only: on a hypothetical $3,000,000 private-party purchase at or above fair market value, 6.25% is $187,500. Attach the FAA bill of sale and the purchase agreement or invoice, which must state the selling price and any tax previously paid clearly and separately [5].

The retail return reads differently. On RUT-25, the purchase price includes accessories, federal excise taxes, freight and labor, and documentary fees, and a trade-in credit is allowed if it is shown on the dealer’s bill of sale [6]. Its rate follows the address you register at: the instructions say to use 6.25% unless otherwise instructed, and list higher rates for Cook County (7.5% beginning August 1, 2026), for DuPage, Kane, Lake, McHenry, and Will counties (7.25% beginning August 1, 2026), and for parts of Madison and St. Clair counties [6]. Those instructions cover every item the form is used for and do not set aircraft apart, so confirm your rate with the department.

Tax already paid to another state. If you acquired and used the aircraft outside Illinois first, you receive credit for tax properly due and paid to another state [4][7], but only if it was properly due and is separately stated on proof of payment attached to the return [5][6].

3. The exemptions, and the ones that aren’t

The Aircraft Use Tax does not apply in a short list of cases [1][3][5]:

the use is already taxed under the Use Tax Act, for example a purchase from an out-of-state retailer reported on RUT-25 [1];
the buyer is a governmental body, or a charitable, religious, or educational organization with an active Illinois exemption number [1][3];
the aircraft is acquired by an interstate carrier for hire as rolling stock (section 5 below) [1];
the aircraft is a gift from an estate to a surviving spouse [3];
the aircraft was acquired outside Illinois, stored here temporarily, and is used solely outside Illinois [1][7];
the aircraft is used primarily, more than 50%, in production agriculture, such as crop dusting [1].

Notice what is missing. A gift of an aircraft from a parent or a spouse during life is taxed on fair market value [3]; the estate-to-surviving-spouse exemption is the only family exemption in the Law [3]. The family-transfer relief that appears in the RUT-75 instructions is written for watercraft only [5]; our Illinois watercraft use tax guide explains it.

4. Buying in Illinois, basing elsewhere: the 15-day rule

The Use Tax Act looks after the owner from another state who buys, inspects, or customizes an aircraft here. Since July 1, 2007, three exemptions have applied, each claimed on Form RUT-60 [7][8][9]:

The aircraft leaves after the sale. No tax on the purchase if the aircraft leaves Illinois within 15 days after the later of the final billing, or the FAA return-to-service steps, and it is not based or registered in Illinois after the purchase [7][8].
Prepurchase evaluation. No tax on an aircraft temporarily here for an examination before purchase, if it is not based or registered in Illinois afterward [7][8].
Post-sale customization. No tax on an aircraft temporarily here for improvement, maintenance, or repair after a change of ownership, if it leaves within 15 days after the return-to-service steps and is not based or registered in Illinois before or after the work [7][8].

The “return-to-service steps” are the FAA’s: after maintenance, rebuilding, or alteration, no one may operate the aircraft until a person authorized under Part 43 has approved it for return to service and the required maintenance record entry is made; and if the work may have appreciably changed how it flies, an appropriately rated pilot must fly it, check it, and log the flight before passengers ride, unless ground tests or inspection show conclusively that nothing changed [10].

Two definitions decide whether you qualify [7][9]:

“Based in this State” means hangared, stored, or otherwise used here, not counting post-sale customization, for 10 or more days in each 12-month period immediately following the date of the sale.
“Registered in this State” means registered with the Illinois Department of Transportation’s Aeronautics Division, or titled or registered with the FAA to an address in Illinois. An owning company with an Illinois address on the FAA registration does not fit this exemption.

The paperwork is a signed, dated RUT-60 kept in your records, with a copy mailed to the department; it names the purchaser, the address where the aircraft will be titled or registered, and the primary physical location of the aircraft [7][8]. The department’s bulletin adds that the exemption covers the aircraft itself, not parts transferred in a service or repair, which stay taxable as before [9]. And if the aircraft is later used in a taxable way in Illinois, the purchaser must file and pay within 30 days, on the fair market value on the date of that first taxable use [7].

5. Charter aircraft: the rolling stock exemption

An aircraft acquired by an interstate carrier for hire as rolling stock is exempt [1][3][7]. The test is demanding [11]:

the aircraft must carry persons or property for hire in interstate commerce for more than 50% of its total trips, or of its total miles or flight hours, in a 12-month period, and in each consecutive 12-month period after that;
you choose trips or miles at the time of purchase and document the choice on Form RUT-7-A; if you don’t choose, you are deemed to have chosen miles;
flights that carry company officers, employees, customers, or others not for hire do not count, even when they cross state lines;
if the aircraft stops qualifying, the exemption is revoked and the tax, penalties, and interest are due.

On RUT-75 you give the FAA certificate of authority number [5]. If your plan is to place the aircraft with a charter operator, our guide to verifying a charter operator explains the federal certificate, and our guide to buying a jet through your company covers the federal tax tests and Illinois’ separate depreciation rule.

6. Moving to Illinois with an aircraft you already own

An individual who lived outside Illinois and used the aircraft outside Illinois for at least three months is exempt from use tax on moving in; the exemption is claimed on RUT-25, and you surrender the out-of-state registration or other proof of use [2][6]. It does not apply to businesses moving into Illinois, to an individual who used the aircraft outside Illinois for less than three months, or to military members whose home of record is Illinois [2][6]. Those owners pay tax, with credit for tax properly paid to another state and an allowance for depreciation: 1.67% for each whole month of out-of-state use, straight line for aircraft [6]. If you originally acquired the aircraft from a private party or other non-retailer, the department directs you to RUT-75 instead [2].

A nonresident who simply flies in for a visit is in a different position: the Use Tax Act does not reach property a nonresident individual acquired elsewhere and brings in for personal use while temporarily in or passing through Illinois [7].

7. Registering with the state: IDOT’s certificate

Illinois has its own aircraft registration, separate from the FAA’s. Unless an exemption applies, no one may operate a civil aircraft in Illinois unless its federal certificate is registered with IDOT’s Division of Aeronautics [12][14]. The essentials [12][13]:

When: file Form AER 2048 within 30 days after establishing Illinois residency or after purchasing the aircraft.
Fee: $20 in the first year of the two-year cycle, $10 in the second. Each cycle begins January 1 of an even-numbered year and ends December 31 of the following odd-numbered year, so a registration in 2026 falls in the first year.
Tax first: payment of the Aircraft Use Tax is a condition of registration [3], and a new application must include the department’s receipt, the tax return and payment, or the transaction documents for forwarding to the department [13]. The tax and the registration fee are separate payments: the tax to the Illinois Department of Revenue, and the fee, according to IDOT’s current form, to the State Treasurer of Illinois [2][13].
In the aircraft: carry the federal certificate and the Illinois certificate, posted where passengers or inspectors can readily see them, such as the kick-panel pocket. The Illinois certificate expires automatically when ownership transfers; a duplicate costs $5 [12].
Penalty: operating without proper registration is a Class A misdemeanor, with a fine of up to $1,000, up to one year in jail, or both [13].

The statute exempts, among others, aircraft owned by a nonresident lawfully entitled to operate them in the owner’s home state, aircraft engaged principally in interstate or foreign commercial flying, and aircraft being demonstrated to a prospective buyer by a bona fide manufacturer, distributor, or dealer [15]. IDOT’s form adds a point worth noticing: an Illinois owner who bases the aircraft out of state but flies within Illinois must register [13].

8. Filing on time, and what lateness costs

File and pay by the due date even if your registration paperwork isn’t ready: the department says to send the return and payment directly to it and keep your stamped copy, which then goes to IDOT as proof [2]. RUT-75 can be filed through MyTax Illinois; an individual filing with a Social Security number needs a prior-year IL-1040 on file and the prior-year adjusted gross income, payment is made electronically with the form, and the department asks you to allow one business day before applying for registration, and three to five business days for payment requests to process [1][5]. Late filing and late payment carry penalties and interest [5]. A willfully false or incomplete return is a Class A misdemeanor, and a conviction carries a $1,000 fine on top of other penalties [3]. When you pay, ask for the department’s receipt: the Law says it relieves you of further liability for the tax it covers [3].

Before you close: a checklist

Identify the seller type, and whose name will be on the FAA bill of sale, before you sign [2].
Match the return: ST-556 from an Illinois dealer, RUT-25 from an unregistered out-of-state dealer, RUT-75 from a private party, company, or gift [2][5][6].
Diary the deadline: 30 days on RUT-25 and RUT-75, 20 days for a dealer’s ST-556 [2].
Make sure the purchase agreement states the price, and any tax already paid, clearly and separately [5].
Don’t count on a trade-in reducing Aircraft Use Tax [4].
Basing outside Illinois after an Illinois purchase, inspection, or completion? Keep under the 10-day and 15-day limits, keep the FAA registration address out of Illinois, and file RUT-60 [7][8].
Placing it on charter? Elect trips or miles on RUT-7-A at purchase and track every 12-month period [11].
Register with IDOT on AER 2048 within 30 days, with proof the tax is settled [12][13].
Keep the receipt, the returns, and the attachments with the aircraft records [3][5].

Frequently asked questions

I bought a jet from another owner, not a dealer. Do I owe Illinois tax?

If you will use it in Illinois, generally yes: the Aircraft Use Tax is 6.25% of the selling price, but not less than fair market value, reported on Form RUT-75 within 30 days after the purchase or the date the aircraft is brought into Illinois, whichever is later [3][5].

Does a trade-in reduce the Illinois Aircraft Use Tax?

No. The Illinois Department of Revenue states that there is no provision for a trade-in allowance under the Aircraft Use Tax [4].

Can I buy an aircraft in Illinois and base it in another state without paying Illinois tax?

Yes, if it leaves Illinois within 15 days after the later of the final billing or the FAA return-to-service steps, is not based or registered in Illinois afterward, and you file a signed Form RUT-60 [7][8].

Does Illinois require its own aircraft registration?

Yes. Aircraft operated in Illinois must have the federal certificate registered with IDOT’s Division of Aeronautics on Form AER 2048 within 30 days after purchase or establishing residency, for $20 or $10 depending on the year of the two-year cycle, unless an exemption applies [12][13][15].