Illinois Tax Law Change
With The New Illinois Tax Law Starting 2020, Now Is Better Than Ever to Trade in Your Vehicle
Thought about trading in your vehicle? If you live in the state of Illinois it may be advantageous for you to trade in your vehicle in 2019 vs. in 2020. Starting January 1, 2020, a new tax law goes into effect that will change the way Illinois taxes the value of a used vehicle trade in.
What is the new Illinois tax law?
To summarize: Illinois currently is not collecting state sales tax on a car's trade-in value. This means that a trade in could act as an untaxed credit toward a new vehicle purchase. Starting January 1, 2020, sales tax will be charged on trade-in values over $10,000.
How does the new Illinois tax law affect me?
This new tax law could affect how much you get for trading in your vehicle toward a new one. By completing your transaction in 2019, you could avoid higher taxes on your trade in, thus reducing the overall cost of your new vehicle.
Example Trade BEFORE Jan. 1 2020
| New Car Price | $35,000 |
| Trade-In Value | $20,000 |
| Taxable Amount | $15,000 |
| 2019 Sales Tax (est. 8.74%) | $1,311 |
Example Trade AFTER Jan 1 2020
| New Car Price | $35,000 |
| Trade-In Value | $10,000 |
| Taxable Amount | $25,000 |
| 2020 Sales Tax (est. 8.74%) | $2,185 |
| Difference in Tax | $874 |
For more details, contact our team and learn about how much we can save you before 2020.
Offers are for estimate purposes only. The 8.74% tax used in the example may be different. See retailer for details.
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