Illinois Automotive Tax Update

Thanks to recent legislation that went into effect January 1st, 2022, you can receive a full tax credit on your trade. Previous legislation capped the tax-creditable value of consumer trades at $10,000, but that's no longer the case. What this means for you is that the full value of your trade-in, even if it's over $10,000, can be deducted from the taxable value of your next purchase. See the example below to find how that translates to more money in your pocket.

Ā Illinois Vehicle Tax CalculationĀ Prior To 1/1/2022Ā Currently
Ā New Vehicle Purchase PriceĀ $40,000$40,000Ā 
Ā Your Trade Value (Example)Ā $25,000$25,000Ā 
Ā Trade Allowance CreditĀ $10,000 (Tax Cap Limited)$25,000 (Full Trade Value)Ā 
Ā Taxable AmountĀ $30,000$15,000Ā 
Ā Tax Rate (Example)Ā 9.75%9.75%Ā 
Ā Tax DueĀ $2,925.00$1,462.50Ā 
Ā Ā You Save:Ā $1,462.50
Ā 
Now is the best time to maximize savings on a new vehicle! Our Express store is the perfect way to see how much your vehicle is worth in our free trade evaluation. We pay TOP DOLLAR for trade-ins. We want to buy your car!Ā 
You can receive up to $7,500 tax credit on new Hyundai electric vehicles!*
*Purchasers of the new Hyundai all-electric vehicle, the IONIQ 5, may be eligible for a federal tax credit of up to $7,500. Learn more about how you can receive tax credit on your Hyundai IONIQ 5 at Rosen Hyundai!

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