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.


Here is an example of how this tax change could impact Illinois consumers:

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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  1. Leader Automotive Group

    1530 N Dayton St
    Chicago, IL 60642

  2. Audi Bloomington Normal

    1430 Fort Jesse Road
    Normal, IL 61761

    • Sales: (309) 807-9090
  3. Audi Peoria

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    Peoria, IL 61615

    • Sales: 309-512-0384
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    Peoria, IL 61615

    • Sales: (309) 512-0384
  5. Hyundai of Palatine

    221 E Lake Cook Rd
    Palatine, IL 60074

    • Sales: 847-230-9455
  6. Hyundai of Lincolnwood

    6747 N Lincoln Ave
    Lincolnwood, IL 60712

    • Sales: 847-929-9255
  7. Mercedes-Benz of Peoria

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    Peoria, IL 61615

    • Sales: (309) 603-0095
  8. Cadillac of Lincoln Park

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    • Sales: (312) 300-0919
  9. Chevrolet of Lincoln Park

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    CHICAGO, IL 60642

    • Sales: (312) 300-0919
  10. Chevrolet of Palatine

    151 E Lake Cook Rd
    Palatine, IL 60074

    • Sales: (224) 836-4233
  11. Kia of Lincolnwood

    6750 N. Lincoln Ave
    Lincolnwood, IL 60712

    • Sales: 847-929-9943
  12. Subaru of Bloomington Normal

    1430 E Fort Jesse Rd
    Bloomington, IL 61761

    • Sales: (309) 807-9075
  13. Toyota of Lincolnwood

    7225 N Cicero Avenue
    Lincolnwood, IL 60712

    • Sales: 847-929-9824
  14. Lincoln Of Normal

    1430 Fort Jesse Rd
    NORMAL, IL 61761

    • Sales: (309) 807-9356
  15. Mercedes-Benz of Bloomington

    1430 Fort Jesse Road
    Normal, IL 61761

    • Sales: (309) 807-4933
  16. Mercedes-Benz of Peoria

    2322 W Van Winkle Way
    Peoria, IL 61615

    • Sales: (309) 603-0095
  17. North City Honda

    6600 N. Western Ave
    Chicago, IL 60645

    • Sales: 773-649-6681
  18. Volkswagen of Peoria

    2322 W Van Winkle Way
    Peoria, IL 61615

    • Sales: 309-396-8467
  19. Porsche of Peoria

    2322 W Van Winkle Way
    Peoria, IL 61615

    • Sales: 309-243-7000
  20. Porsche Peoria

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    Peoria, IL 61615

    • Sales: (309) 603-0100
  21. Toyota of Lincoln Park

    1561 N. Fremont St.
    Chicago, IL 60642

    • Sales: 312-300-0920
  22. Volkswagen of Bloomington Normal

    1430 Fort Jesse Rd
    Normal, IL 61761

    • Sales: (309) 807-4986
  23. Volkswagen of Peoria

    2322 W Van Winkle Way
    Peoria, IL 61615

    • Sales: (309) 512-0384
  24. Volvo Cars Normal

    1430 Fort Jesse Rd
    Normal, IL 61761

    • Sales: (309) 807-4995
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