New 2020 Illinois Trade-In Tax in Schaumburg, IL

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 acted as an untaxed credit towards your new vehicle purchase. However, starting January 1st, 2020, the Trade-In Tax Law has changed, 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 became effective on January 1st, 2020, and it eliminates the tax benefit of trading in your vehicle. Now, 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 January 1st, 2020 for a new vehicle valued at $65,000, you would get credit worth your current vehicle value, and you'd only be taxed on the difference.

As of January 1st, 2020, 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.


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
Loading Map...
/*]]>*/