Why Illinois is a serious corporate aviation market, not just a Chicago layover
The Chicago metro area supports one of the busiest concentrations of corporate and business aviation in the Midwest, with reliever airports across the region handling significant business jet and turboprop traffic outside O'Hare and Midway. Beyond Chicago, Illinois' central location and strong agricultural and manufacturing base support real general aviation activity statewide.
The rates above are our live national rates; Illinois residency neither helps nor hurts your pricing. What is Illinois specific is the tax picture below, which works differently than a typical retail sales tax and is worth understanding before you assume how a purchase will be taxed.
Sales tax, use tax, and property tax: the Illinois layer
Aircraft use tax. Illinois applies an Aircraft Use Tax at 6.25 percent of the purchase price or fair market value, whichever is greater, specifically to aircraft acquired by gift, donation, transfer, or a non-retail purchase from a party who is not a dealer, which covers most private-party sales. A nonresident exemption is available on Form RUT-25 if the aircraft was registered in another state for more than three months, but this exemption is narrower than it sounds: it applies only to individuals moving into Illinois, not to businesses relocating and not to military personnel whose home of record is Illinois. Other exemptions cover government, charitable, religious, and educational acquisitions; interstate carriers; gifts to a surviving spouse through an estate; temporary storage of an aircraft acquired and used solely outside Illinois; and aircraft used more than half the time in production agriculture.
Parts exemption. A 2023 law added exemptions for aircraft parts, which matters for ongoing maintenance cost planning separate from the purchase itself.
This is orientation, not advice; Illinois aviation tax outcomes are fact specific, especially around the nonresident exemption's narrow eligibility. Engage an Illinois aviation tax advisor before closing.
The depreciation layer
Federal bonus depreciation is only half the tax picture; how Illinois treats the deduction is the other half. Beginning with tax years starting on or after January 1, 2026, Illinois decouples from federal 100 percent bonus depreciation under IRC Section 168(n), so a state add-back is expected going forward. The bonus depreciation guide carries the full state-by-state conformity breakdown and the December 31 placed-in-service mechanics. Read it alongside this page before you commit to a closing date.
Compare against other states
The tax treatment above is specific to this state, but if you are comparing markets, financing across state lines, or want the full fly-away exemption rules in one place, see our aircraft sales tax by state guide for the state-by-state breakdown.
Run the Illinois Buyer's Numbers
Interactive: payment and year-one depreciation, side by side
The two numbers every Illinois business buyer runs first: the monthly payment at today's rate, and what 100 percent bonus depreciation could be worth in year one. Both in one place, with the state layer linked below.
Est. year-one bonus depreciation
N/A
Est. year-one federal tax value
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Illustrative only, not a loan offer and not tax advice. Bonus depreciation eligibility depends on qualified-business-use thresholds and listed-property rules; state conformity varies. See the
bonus depreciation guide for the December 31 placed-in-service mechanics and the state-by-state conformity table before you plan around these numbers.
What Illinois buyers should know
- Rates and terms are national. Same live pricing as the strip above; up to 20-year terms on certified pistons, 15 to 20 percent down for strong credit, soft-pull pre-qualification available.
- Closings are remote. Your closing runs through FAA escrow in Oklahoma City regardless of where in Illinois you or the aircraft sit. Our title & escrow guide walks the sequence.
- Don't assume the nonresident exemption applies to you. It is limited to individuals moving into Illinois with an aircraft already registered elsewhere for more than three months; it does not cover a business relocating or military personnel whose home of record is Illinois.
- Business and corporate use is common here. Chicago-area corporate flying supports a well-worn underwriting path. Business Part 91 use finances at 80 to 85 percent LTV with terms up to 20 years; tell us the mission upfront.
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Illinois Aircraft Financing Questions
Do aircraft loan rates differ in Illinois?+
No, rates are set by aircraft type, credit profile, and loan structure, not by state. Illinois buyers see the same live pricing shown on this page. What is Illinois-specific is the tax treatment and the strength of the local market.
Does Illinois charge sales tax on aircraft purchases?+
Illinois applies an Aircraft Use Tax, not a standard retail sales tax, at 6.25 percent of the purchase price or fair market value, whichever is greater, to most private-party and non-dealer aircraft transfers. A nonresident exemption exists on Form RUT-25, but it applies only to individuals moving into Illinois with an aircraft already registered elsewhere for more than three months, not to relocating businesses. Confirm your specific situation with an Illinois aviation tax advisor before closing.
Who qualifies for Illinois' nonresident aircraft tax exemption?+
Only individuals, not businesses. The exemption on Form RUT-25 requires the aircraft to have been registered in another state for more than three months and applies specifically to an individual moving into Illinois; it does not cover a business relocating its operations or military personnel whose home of record is Illinois.
Are there other Illinois aircraft use tax exemptions besides the nonresident one?+
Yes; Illinois also exempts government, charitable, religious, and educational acquisitions, interstate carriers, gifts to a surviving spouse through an estate, temporary storage of an aircraft acquired and used solely outside Illinois, and aircraft used more than half the time in production agriculture, plus a 2023 law added exemptions for aircraft parts.
Where does a Illinois aircraft closing actually happen?+
Through an FAA escrow agent in Oklahoma City, like every U.S. aircraft closing, deposit held in escrow, title searched, documents filed with the registry in sequence on funding day. You never have to leave Illinois.
Does Illinois conform to federal bonus depreciation?+
Not going forward; beginning with tax years starting on or after January 1, 2026, Illinois decouples from federal 100 percent bonus depreciation under IRC Section 168(n), meaning a state add-back is expected. See the bonus depreciation guide for the full state-by-state conformity table, and confirm current-year treatment with your CPA.
FLYING Finance Resources
From the FLYING Ecosystem
A use tax, not a sales tax. Know the difference.Live rates, soft-pull pre-qualification, closing coordinated through Oklahoma City escrow.
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