Illinois Trade-In Tax Coming: What You Need to Know
If you’re the kind of driver who tends to trade in a vehicle every few years, there’s some important news you need to know about new taxes which go into effect on January 1st, 2020. The Marino Chrysler Dodge Jeep Ram team wants to be sure you know everything about the car trade-in tax that hits once the calendar turns to 2020.
Vehicle Trade-In Tax On the Way
While Illinois currently does not levy a tax on a car’s trade-in value, that is about to change under Senate Bill 690, signed into law back in June by Governor Pritzker. State and local sales tax will be applied to any trade-in with a value above $10,000.
With the state’s sales tax rate currently at 6.25%, that is the least residents can expect to pay. Statewide, the average combined state and local sales tax is just shy of 9%, though it’s as high as 10.25% in Chicago. This tax change can lead to a double taxation of sorts, since you already paid sales tax on the car when you purchased it. While this won’t affect every driver, it’s important information for those who trade in a car every year or two.
Considering Trading Your Car In? Let Us Know Today
If you’ve recently purchased a car that you’ve been thinking about trading in, get in touch with the staff here at Marino Chrysler Jeep Dodge Ram. If you wait until January 1st to trade in your car, it’s possible that you could be taxed additionally thanks to the new taxes going into effect here in Illinois.
We’ll provide a value of your car, get you set up with your next car, and ensure you’re getting the value you deserve for your current vehicle. Have any questions? Feel free to reach out to us today!