State and local taxes will be applied to any trade-in value above $10,000
Effective January 1, 2020, under Senate Bill 690, signed into law June 28 by Gov. J.B. Pritzker.
Currently, Illinois does not charge sales tax on vehicle trade-in value. Beginning January 1, 2020, sales tax will be applied to trade-in values over $10,000. Here is an example of what the change will cost using the combined average state and local tax of 8.74%.
Before January 1
| New Car Price | $55,000 |
|---|---|
| Trade-in Tax Credit | $35,000 |
| Taxable Amount | $20,000 |
| Sales Tax | $1,748 |
After January 1
| New Car Price | $55,000 |
|---|---|
| Trade-in Tax Credit | $10,000 |
| Taxable Amount | $45,000 |
| Sales Tax | $3,933 |
Difference: +$2,185
Questions About This Tax Change?
Please call Doug Bonczek at 217•253•3353
Contact
Ford of Tuscola
406 East Southline
Tuscola, IL 61953
- Sales: (217) 253-3353
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- Parts: (217) 599-1359
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