Notice of Significant Changes to Illinois Sales Tax

Effective January 1, 2020

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


Ford of Tuscola

406 East Southline
Directions Tuscola, IL 61953

  • Sales: (217) 253-3353
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  • Parts: (217) 599-1359

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