The new Illinois trade-in tax law became effective as of January 1st, 2020. 'It's an unfair tax. Starting January 1, 2020, however, Senate Bill 690 , signed by Gov. If the sales tax is 6.25%, the 2019 payment would be $1,000 compared to $1,625 in 2020. If your trade-in value is less than $10,000, you are exempt from the new tax and would use this formula: (Price of purchased car) - (old car's trade in value) = taxable total. Read an important message from Patrick Cadillac, Get Currently, the state of Illinois does not collect sales tax on a car's trade-in value. Up until recently, Illinois car buyers haven't had to pay a sales tax on a car's trade-in value since it's used as the difference between trade-in value and the new vehicle's purchase price. The health and safety of our staff, customers, and community is our top priority. This new trade-in tax eliminates the tax benefit of trading in your vehicle. The Illinois Auto Dealers Association lobbied against the tax in Springfield and are hoping to get it repealed next year. Starting January 1, 2020, sales tax will be applied to the trade-in value of a car. Under Senate Bill 690, signed June 28 by Gov. Illinois residents won't be able to avoid new trade-in tax by buying cars in Northwest Indiana, but another new tax may eventually drive more people from the south suburbs across The Green Nissan Team wants to be sure you know everything about the car trade-in tax that hits once the calendar turns to 2020. President of the Illinois Automobile Deale But there is one specific carve-out to the new law. To summarize: Illinois currently is not collecting state sales tax on a car's trade-in value. Taxes are changing on the sale of some used vehicles with the start of the new year. For monthly parking, it will be 9%. A new Illinois law became effective on January 1st, 2020 which eliminates the tax benefit of trading in your vehicle. Starting on January 1st 2020, sales tax will be charged on any trade-in valued over $10,000. In 2020, trade-in credit above $10,000 will be taxed in addition to the … If a trade-in is worth $10,000 or less, the full value would be received. Vehicle Trade-In Tax On the Way While Illinois currently does not levy a tax on a car’s trade in value, that is about to change under Senate Bill 690, signed into law back in June by Governor Pritzker. J.B. Pritzker, state and local sales tax will be applied to any trade-in value above $10,000. Starting January 1, 2020, sales tax will be charged on trade-in values over $10,000. The state sales tax on vehicles is currently 6.25%, but if you're trading in a car, you will also have to account for local taxes into account on the taxable total. New Illinois trade-in tax set to begin Jan. 1st 2020; New tax bill was signed June 28th by Gov. Currently in Illinois, sales tax only applies to the difference between your trade-in value and the vehicle’s purchase price. On January 1 st, 2020, a change in Illinois tax law will go into effect, drastically reducing the amount that can be saved on sales tax when trading a vehicle in. J.B. Pritzker IL sales tax will be applied to trade-in value above $10,000 New tax is expected to cost Illinoisans $60 million a year In 2020, trade-in credit above $10,000 will be taxed in addition to the difference between the new and used car prices. Trading in your car in Illinois just became a little more expensive. Once you've saved some vehicles, you can view them here at any time. Illinois will now no longer give a full exemption on the trade-in value of a car. Illinois Car Trade-In Tax Changes Starting January 2020 Illinois is imposing a car trade-in tax on Jan. 1. Currently the state collects no sales tax on trade-in value, but that changes on Jan. 1. New Trade-In Tax Will Begin Jan. 1st 2020 SB 690 was signed June 28th by Gov. 101-0031 amended the Retailers' Occupation Tax Act and the Use Tax Act to redefine the 'selling price' subject to Sales and Use Taxes for sales and purchases of motor vehicles when a customer trades in a first division motor vehicle. Regardless of the amount of advance trade-in credit issued to a customer for a first division motor vehicle prior to January 1, 2020, for sales or purchases of motor vehicles on or after that date, the total credit claimed for that trade in cannot exceed $10,000. You can use the value calculated with this tool in your online Finance Application to help make a purchase easier with Hyundai, bad credit financing or otherwise.. Redeem your quote at our dealership and get cash or trade in today! Add your name to the opposition of even higher taxes & fees for Illinois drivers. $10,000 Trade-In Cap Starting January 1, 2020, the tax credit for a motor vehicle trade-in will be capped at $10,000. The health and safety of our staff, customers, and community is our top priority. After reviewing the new Illinois car trade-in tax changes for 2020 and learning more about how trading in your car works, make your way over to Honda City Chicago to get a look at our new and pre-owned models for sale. What is the new trade-in tax? You can get the best estimated value for your vehicle right now at Patrick Cadillac, The health and safety of our staff, customers, and community is our top priority. Under Senate Bill 690, signed June 28 by Gov. Accept trade-in terms, sign the paperwork, and head home in your new vehicle; Trade-In Your Vehicle at Honda City Chicago. Before January 1st, 2020, Illinois collected no sales tax on the car's trade-in value. 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