There is new information regarding Illinois' recent tax revisions and increased fees. The Vehicle Trade-In Value Cap has been changed and it's important to understand what this means for purchasing a vehicle in Illinois. We want our customers to know all of the recent changes.
2020 Trade-In Tax Cap
Who does this tax affect?
It affects everyone trading in a Class 1 vehicle towards the purchase of a new or pre-owned vehicle.
What has changed?
Under current law, your trade allowance (vehicle value) reduces the overall amount of sales tax you pay on the vehicle purchase. However, under new law your trade allowance is capped at $10,000.
How much will this new law cost me?
In 2019, there was no sales tax on your car's trade value since the allowance reduces your overall taxable amount. As of January 1, 2020, your vehicle trade allowance over $10,000 will not count as a credit and you will be taxed on the purchase price minus $10,000.
The fee for vehicle registration has increased from $101 to $151
Dealer documentation fee:
This fee has increased from $174.94 to $300. The Secretary of State sets the limit for this fee every year.
Get Your Vehicle's Best Trade Value by clicking the Value Your Trade button above to start your free vehicle evaluation.