Starting on Jan. 1, 2020, a local sales tax will be added to any trade-in value over $10,000. https://express-images.franklymedia.com/9851/sites/5/2020/01/03103401/PICKUPTAX.mp3. SUV’s are not exempt from the new sales tax law, even if they are being driven with B Truck license plates. Therefore, sales tax is owed on $25,000 instead. iSeeCars.com analyzes prices of 10 million used cars daily. A new law, titled Leveling the Playing Field for Illinois Retail Act, will apply Illinois' sales tax to the value of vehicle trade-ins over $10,000 rather than having car buyers pay sales tax … Public Act (P.A.) Before January 1st, 2020, Illinois collected no sales tax on the car's trade-in value. If you have been considering trading your vehicle for a new Jaguar, Land Rover or pre-owned vehicle, it is a great idea to start the process now. Mileage Tax Trailer Registration. The state currently collects no sales tax on your car's trade-in value, which has acted as credit towards a new vehicle purchase. For example, even if you were to go outside the state, to trade in your vehicle, the new sales tax rules would still apply when you register the vehicle. Illinois Revenue Department examining dealers’ trade-in tax credits. J.B. Pritzker will apply Illinois’ sales tax to any traded-in vehicle’s worth over $10,000. Autotrader provides advice on car values and tips, so you can get the most for your car trade-in and make the trading process easier. To learn more, see a full list of taxable and tax-exempt items in Illinois. ILLINOIS (RFD) — As automobile owners begin the New Year if you’re going out and buying a new vehicle there’s a new tax law to keep in mind. The Tax Cuts and Jobs Act (“TCJA”) has resulted in many changes in the tax laws. Instead of the taxable amount being reduced by the full value of a trade-in, there’s a $10,000 cap. On January 1st, a new Illinois tax law takes hold that will completely erase the tax benefits when you trade your car or truck. Instead, Illinois’ sales tax will apply to any trade-in vehicle worth more than $10,000. Are pickup trucks exempt from the new $10,000 tax cap? That means trading in a $30,000 car for one worth $60,000 will … But there is one specific carve out to the new law. Save my name, email, and website in this browser for the next time I comment. Prior to 2020, Illinois did not collect a sales tax on a car’s trade-in value unless the vehicle was worth more than $20,000. The taxes can be different in the case of a vehicle being purchased by a private … When the final results are in, car dealerships in Illinois likely noticed a spike in revenue during December 2019 by customers looking to avoid increased Illinois sales tax. SUV’s are not exempt from the new sales tax law, even if they are being driven with B Truck license plates. TA Trailer (3,000lbs or less) Trailer - Flat Weight (3,001lbs and over) Motorcycle TA Trailer (3,000lbs or less) Recreational Trailer. 2 The 2021 Jeep Gladiator has the Wrangler’s aesthetic, convertible top and doors, and outstanding off-roading capability, with the added bonus of a truck … Search 8,611 listings to find the best deals. Currently, the state of Illinois does not collect sales tax on a car's trade-in value. Lots of equipment. Starting on January 1st 2020, sales tax will be charged on any trade-in valued over $10,000. Thinking of finding loopholes to get around paying the increased sales tax? Proceeds will go to funding roads and vertical infrastructure projects under the Rebuild Illinois Capital Plan. There is also between a 0.25% and 0.75% when it comes to county tax. $19,000. A new car tax is set to take effect on Jan. 1, meaning shoppers with cars worth $10,000 or more will have pay more in taxes for trade-ins. That means an Illinoisan trading in a car worth $30,000 for a car worth $60,000 would … J.B. Pritzker, state and local sales tax will be applied to any trade-in value above $10,000. As you may be aware, the Illinois Department of Revenue is currently involved in numerous audits of automobile dealers. Find out the details. Instead, Illinois’ sales tax will apply to any trade-in vehicle worth more than $10,000. Runs & drives perfectly! Beginning in 2020, a new law signed by Gov. Beginning January 1, 2020 a maximum of $10,000 of the trade-in value of the old vehicle is exempt from Illinois sales tax. Under Senate Bill 690, signed June 28 by Gov. President of the Illinois Automobile Dealers Association Pete Sander says if you’re trading in a pick-up truck or cargo van the entire value of the vehicle is still exempt. Yes. You can also get a Kelley Blue Book (SM) Instant Cash Offer and use it toward the purchase of another vehicle, or … State officials estimate that the change in Illinois tax law will generate roughly $60 million in additional revenue on an annual basis. Here a comparison that illustrates the difference between trading in a vehicle prior to and after January 1, 2020. Illinois will impose a car trade-in tax on January 1, 2020. Sales tax only applies to the difference between the determined trade-in value and the new vehicle purchase price. In addition to state and county tax, the City of Chicago has a 1.25% sales tax. Think again. A pair of proposals recently filed by state lawmakers would kill the vehicle trade-in sales tax before it … 53K mi. Speak with an Expert... Oklahoma Sales Tax Exemption for Software, Michigan Sales Tax Exemption for Manufacturing. This increase is a result of a new Illinois sales tax law that is set to go into effect January 1, 2020.