Illinois Trade-In Tax Credit
The state of Illinois collects no sales tax on the value of your trade-in, this will change starting January 1st, 2020.
Currently, the State of Illinois collects no sales on a car’s trade-in value, which acts as credit toward a new vehicle purchase.
By law, sales tax only applies to the difference between trade-in value and the new vehicle’s purchase price.
On January 1, 2020, State and Local Taxes will be applied to any trade-in value above $10,000.
Buy before Jan. 1 2020 and avoid the tax.