Illinois Vehicle Trade-In Credit Changes for 2022
Make your car buying process easy with Porsche Exchange and get your full tax credit! Illinois has removed a vehicle's trade-in value from the selling price definition. The updates to this statute will require the full value of all trade-ins to be excluded from the tax for retail sales. This change gives car-buyers the ability to save thousands on their trade-in. Buyers now have the ability to use the full trade-in amount when calculating the overall Illinois sales tax that is due at the time of purchase. Prior to 2022, trade-in credits were capped at $10,000. This is an ideal time to get your car appraised and buy the new car you've had your eye on!
Sales Tax Before and After
2021
New Car Price
$40,000
Trade-In Value
$25,000
Tax Credit
$10,000
Taxable Amount
$35,000
Sales Tax
$2,712.50
2022
New Car Price
$40,000
Trade-In Value
$25,000
Tax Credit
$25,000
Taxable Amount
$15,000
Sales Tax
$1,162.50
In this example you save an additional $1,550. Visit us at Porsche Exchange today!