Starting next year, it’s going to get more expensive to trade in your car.
Come January, it’ll cost you 6.25% for each $10,000 your car is worth.
Governor JB Pritzker signed it into law in June as part of his capital plan.
The money will be used to build and renovate state buildings.
For every $10,000 your trade-in is worth, you’ll be taxed $625.
Even if you trade in a vehicle out-of-state, you’ll still have to pay the tax. When you come back, you have to register that automobile. It has to go through the Department of Motor Vehicles as well as the Department of Revenue, You will be taxed the same as if you would have if you purchased it locally,
According to Governor Pritzker’s proposed fiscal year 2020 budget, the new tax is expected to cost Illinoisans $60 million a year.
The new tax begins January 1st.
