2020 Illinois Trade-In Tax Credit Law Change

Starting January 1st, 2020, Illinois will be adding sales tax on a vehicle’s trade-in value above $10,000. With Northbrook’s current sales tax rate of 8.25%, this is what those changes could cost you in the new year:

Before Jan 1, 2020 After Jan 1, 2020
New car price $80,000 New car price $80,000
Trade-in tax credit $40,000 Trade-in tax credit $10,000
Taxable amount $40,000 Taxable amount $70,000
Sales tax (8.25%) $3,300 Sales tax $5,775
Difference +$2,475

$40,000

Used 2019 Mercedes-Benz C 300

Used 2019 C 300

$80,000

New 2020 Mercedes-Benz GLS

New 2020 GLS

If you are thinking about trading a vehicle in, now is the time to avoid the increase! If you have any questions about this change or how you can take advantage of the current trade-in tax savings, call us at 847-272-7900 or fill out the form below!

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