If you want to be exempt from Illinois’ new sales tax exemption when trading in a vehicle, buy a truck.
Illinois will now no longer give a full exemption on the trade-in value of a car. Instead, Illinois’ sales tax will apply to any trade-in vehicle worth more than $10,000. That means trading in a $30,000 car for one worth $60,000 will cost the customer an extra $1,200 in additional sales taxes.
Illinois Department of Revenue spokesman Sam Salustro said the new tax won’t affect most trade-ins.