FILE - Ford, pickup trucks

In this Sunday, Nov. 10, 2019, photograph, a long row of unsold 2020 F-150 pickup trucks sits at a Ford dealership in Littleton, Colorado.

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.

“A majority of trade-ins are valued under $10,000,” he said. “This should not affect the majority of people.”

The sales tax will also apply to RVs, ATVs and boats valued at more than $10,000. State officials expect the new tax to bring in $60 million annually. 

Exemptions include one of the more popular forms of transportation in rural Illinois. 

“There’s a broad amount of exemptions,” Salustro said. “For example, pickup trucks or other hauling vehicles.”

Trading in a car in another state won't exempt the purchase from Illinois' sales taxes because the taxes are levied based on the registration address. 

Staff Reporter

Cole Lauterbach reports on Illinois and Arizona government and statewide issues for The Center Square. He has produced radio shows for stations in Central Illinois and created award-winning programs for Comcast SportsNet Chicago.