The retail sale of a boat is subject to the 3.00% State rate of sales and use tax with a maximum tax of $1,500 per article. Boats are not subject to the local and transit rates of sales and use tax. In the instance where sales tax has not been paid on the purchase of a boat, a use tax at the 3.00% State rate with a maximum tax of $1,500 per article applies to a boat purchased or received from within or without this State for storage, use, or consumption in this State.
For a business or person who is not registered with the Department and is required to collect and remit sales and use tax on retail sales of boats, register online using the online business registration portal. Gross receipts derived from the retail sale of a boat and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.
For a business or person who is not registered with the Department and is required to remit use tax on a boat purchased or received from within or without this State for storage, use, or consumption in this State on which sales tax has not been paid, the business or person must file Form E-555, Boat and Aircraft Use Tax Return.
Additional Information for Boats
- Sales and Use Tax Technical Bulletin Section 35-8 (2009-2016 legislative changes not included)
Technical Publications for Boats
- Important Notice: Direct Pay Permit and Use Tax Exemption for Certain Boat, Aircraft, and Qualified Jet Engine Charges and Services (7-15-16)
- File and Pay Taxes
- Find Tax FAQs
- Find Tax Information
- Pay a Bill or Notice
- Request an Installment Agreement
- Understand My Notice
- Collections – Past Due Taxes
- Periodic Review of Existing Rules
- Reports and Statistics
- Resolving Disputes
- Identity Theft
- Individual Income Tax Estimator
- Individual Income Tax Rates
- Sales and Use Tax Rates
- Taxpayer Advocate
- Taxpayer Self-Help