Updates to the Illinois Trade-In Tax in 2022

Important changes to Illinois vehicle trade-in credit in 2022.

January 2022 – The state of Illinois recently repealed a law to allow customers to receive the full tax credit on vehicle trade-ins. In addition to this change, recent fluctuations in the automotive market make right now an ideal time to have your vehicle appraised and explore your options.

2021

New Car Price

$40,000

Trade-in Value

$25,000

Tax Credit

$10,000

Taxable Amount

$30,000

Est. Tax

$2,775.00*

2022

New Car Price

$40,000

Trade-in Value

$25,000

Tax Credit

$25,000

Taxable Amount

$15,000

Est. Tax

$1,387.50*

In this example, you will be saving $1,387.50 more this year than you would in 2021.*

*Example based on 9.25% sales tax rate. Does not include license and doc fee. Example only.

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