New Illinois Trade-in Tax Update
As of January 1, 2020, Illinois 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%:
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!