New 2020 Illinois Trade-In Tax

Explore the New Illinois Trade-In Tax with Patrick Hyundai

When you traded in your vehicle in the state of Illinois in previous years, the state didn't collect any sales tax on the process. Your car currently acts as an untaxed credit towards your new vehicle purchase. However, with the coming of the new year, the Trade-In Tax Law is changing, and we want you to know exactly how that will affect you.


All You Need to Know about the New Trade-In Tax Law

The new law becomes effective on January 1st of 2020, and it will eliminate the tax benefit of trading in your vehicle. Once the new year stats, sales tax will be charged on a trade-in value over $10,000. For instance, if you were trading-in a vehicle valued at $38,000 before the 1st for a new vehicle valued at $65,000, you will get credit worth your current vehicle value, and you'll only be taxed on the difference.

With the start of the new year, you will only get a trade-in credit of $10,000 rather than the value of your vehicle which makes the taxable amount of your vehicle $28,000. On top of that, you will still be paying tax on the cost of your trade, which makes the taxable amount $55,000. In these situations, you would be paying a tax of $2,430 before the 1st and $4,950 after the 1st.

What Should You Trade-In?

If you're considering trading in your current vehicle, you should do so before January 1st hits. Begin the process as soon as possible to make sure you have to consider your options and to find one that is a good fit for you. You can get the best possible start before the new year, and guarantee you save some money in the process.

Give us a call today, and we'll help you get things rolling if you're looking to trade your current vehicle in.

Contact

Patrick Hyundai

1020 E. Golf Rd
Directions Schaumburg, IL 60173

  • Sales: (847) 230-8220
  • Service: (847) 230-8221
  • Parts: (847) 230-8222

Hours

  • Monday 9:00am - 9:00pm
  • Tuesday 9:00am - 9:00pm
  • Wednesday 9:00am - 9:00pm
  • Thursday 9:00am - 9:00pm
  • Friday 9:00am - 9:00pm
  • Saturday 9:00am - 6:00pm
  • Sunday Closed
  1. Patrick Hyundai

    1020 E. Golf Rd
    Schaumburg, IL 60173

    • Sales: (847) 230-8220
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