Illinois Vehicle Trade Tax
Trade Your Vehicle Before the Illinois Trade-In Tax Laws Change!
Illinois tax laws on trade-ins are changing January 1st, 2020 – Trade now to avoid sales tax on your trade!
Have you been considering trading your vehicle? If so, you need to seriously consider trading before the end of the year.
Your Vehicle is Worth More NOW Than in 2020!
On January 1st, a new Illinois tax law takes hold that will completely erase the tax benefits when you trade your car or truck. If you have been considering trading your vehicle for a new Chrysler, Dodge, Jeep, RAM or pre-owned vehicle, it is a great idea to start the process now.
Big Changes to the Illinois Trade-In Tax Credit Law
Right now, the state of Illinois does not collect sales tax on a vehicle’s trade-in value. Your trade is a credit towards your purchase of a new vehicle. This revision to the Illinois tax law has set the maximum tax credit you will receive at $10,000. In other words, taxes will be applied to any trade-in value above $10,000.
Maximize Your Trade-In Value
The new tax law will adversely affect how much value you get on your trade towards a new or newer vehicle. However, if you trade your vehicle before January 1st, you won’t pay sales tax.
Uftring Chrysler Dodge Jeep RAM is encouraging our customers to trade before this new tax law takes effect. Do not wait! Trade your vehicle before January 1st, 2020 and avoid the new tax.
For example, if you are trading-in a vehicle valued at $20,000 before January 1st, 2020 for a vehicle priced at $35,000, you would be taxed on the difference of $15,000.
At the start of the new year, you will only receive a maximum trade tax credit of $10,000. Instead of your vehicle being based on a taxable difference of $15,000, your taxable amount would now be based on $25,000. As you can see from the chart below, this means you’ll pay more.