New Illinois Trade-in Tax Update

As of January 1, 2020, Illnois is imposing a new trade-in Tax

Currently Illinois does not charge sales tax on trade-in value. Starting January 1, 2020, sales tax will be charged on trade-in value above $10,000.

Here is what the change will cost using the combined state and local average of sales tax of 8.75%:

 

Before tax breakdown
After tax breakdown

 

That’s correct. It would cost an additional $874 in Illinois state taxes when you trade in your vehicle with an appraised value of $20,000.

Simply put, your car is worth more TODAY than it will be next year. If you are thinking of trading in your vehicle, today is the day!

 

Questions?
Please speak with our trade advisor for more information.