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Illinois Trade-In Tax Law
Peoria, IL Sales Tax Law Updates!
There has been an update to laws for the tax on cars in Illinois— and it’s a huge win for residents. The new law, which started on January 1, 2022, states that retail vehicle buyers can now receive the full car trade-in tax credit in Illinois, reversing the previous Illinois trade-in tax credit cap of $10,000 that was part of Governor Pritzker’s Rebuilder Illinois capital infrastructure plan in 2020.
The new car sales tax for Illinois residents was introduced as part of Senate Bill 58 and earned lots of support from the Illinois Automotive Dealers Association and the Chicago Automotive Trade Association (CATA). This new law also means incredible trade-in terms for Dunlap and Macomb drivers like you!
There’s more good news! With the previous 2020 tax law, Local and state sales taxes were levied on any trade-ins on vehicles valued above $10,000. That’s no more! Illinois residents can claim the full trade-in value of their car— no matter the value!
When you’re shopping for your next vehicle and—as an example—the tax credit on the trade-in worth $20,000 can be as much as $2,000, depending on the location. This is a significant win for Illinois residents!
Have any questions or want to know more? Don’t hesitate to reach out to our sales team!