Illinois Trade-In Tax Change
** Notice of Significant Changes to Illinois Sales Tax **
Effective January 1, 2020 Under Senate Bill 690, signed into law June 28 by Gov. J.B. Pritzker, state and local sales tax will be applied to any trade-in value above $10,000.
Currently, Illinois does not charge sales tax on vehicle trade-in value. Beginning January 1, 2020 sales tax will be applied to trade-in values over $10,000. Here is an example of what the change will cost using the combined average state and local tax of 8.74%: