Illinois Trade-in Tax: What You Need to Know
Are you at that point in your car ownership journey when you’re thinking about trading in your vehicle? If so, we have some important news you need to know.You may remember the trade-in taxes that went into effect in 2020. Well, as of January 1, 2022, there will no longer be a cap to the tax credit on trade-ins.
We’re here to share all the latest developments on the Illinois trade-in tax with Chicago, Skokie, Park Ridge, and Forest Park, IL, drivers. Find out how you can get more value on your trade at Marino Chrysler Dodge Jeep Ram (CDJR)!
Illinois Trade-in Tax: What’s Changed
After a new law went into effect on January 1, 2022, retail vehicle buyers will now receive the full tax credit on trade-ins. This new provision reverses the $10,000 cap that was set in 2020 as part of Governor Pritzker’s Rebuild Illinois capital infrastructure plan.
Introduced as part of Senate Bill 58, this provision earned support from both the Chicago Automobile Trade Association (CATA) and the Illinois Automotive Dealers Association. It also means more favorable trade-in terms for drivers like you.
While under the terms of the 2020 law, state and local sales taxes were levied on any trade-in vehicle with a value above $10,000. However, as of January 1, 2022, that’s no longer the case. Illinois residents can now claim the full trade-in value of their vehicles, no matter the value!
Significant Tax Savings for You
So, just how much can this new provision save you as you shop for a vehicle? The tax savings can be quite significant. As an example, the tax credit on a trade-in worth $20,000 could be as high as $2,000 in some locations.
In this situation, the shopper selling their car to a dealership would be saving an additional $1,000 compared to the savings under the previous law, in which the trade-in credit was capped at $10,000.
At a time when trade-in values are at an all-time high, the new Illinois trade-in tax credit provision gives vehicle owners a little extra motivation to trade in their cars. Now’s the time to strike while the iron is hot!
Applicable for Retail Deals, Not Lease Deals
Keep in mind that the new provision applies to retail deals, not lease deals. You can reach out to a team member at our dealer to find out how the Illinois trade-in tax credit will affect you and your specific trade-in situation.
In the meantime, start thinking about that next trade-in! You can use our Value Your Trade tool to piece together a picture of how much your vehicle is worth—and, with a little calculation, how much you can save with the trade-in tax credit.
Remember, we’ll take your trade-in whether or not you choose to buy from us. Feel free to shop our new and pre-owned inventory if you’re interested.
Claim Your Full Trade-in Value Today
Chicago, Skokie, Park Ridge, and Forest Park, Illinois, residents have more incentives to complete a trade-in than they’ve had in recent memory.
Get the value you deserve for your current vehicle at Marino CDJR! Contact us today to see how much you can save with the Illinois trade-in tax credit.
