WVEL Consumer/News Scope Now: Trade-In Tax Credit Cap Coming To Illinois For Vehicles

(Photo By Flickr User Automotive Rhythms)

 

If you’re looking to trade in your car in Illinois, you might want to do so in 2019.

Starting in 2020, there will be a cap on the trade-in tax credit.

According to the Daily-Herald, car buyers currently pay sales tax on the difference between the value of a new car, and the value of the car they’re trading in.

Aaron Peters (the sales manager at Shottenkirk Toyota in Quincy, IL), said that all changes starting next year.

“If you traded in a vehicle that’s say, worth $20,000, you’re only going to get a $10,000 credit on that, meaning you’re only going to end up paying another 6.25 sales tax on that other $10,000 you already paid when you purchased that vehicle,” said Peters.

The new formula goes into effect next year.