# Illinois — Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference

For Illinois, trade-in credit allowed is full credit, recorded from its source on 2026-08-20.

- **State:** Illinois _(our reading, not quoted from the source)_
- **Trade-in credit allowed:** full credit _(our reading, not quoted from the source)_

## What the source says

> For sales made on or after January 1, 2020, up to and including December 31, 2021, for purposes of calculating your Sales Tax due, you cannot claim trade-in credit exceeding $10,000 for any first division motor vehicle that was traded in during the sale being reported on Form ST-556. For sales made on or after January 1, 2022, the $10,000 trade-in credit limit no longer applies.

## Source

- https://tax.illinois.gov/forms/sales/vehicleusetax/st-556-sales-tax-transaction-return-instructions.html

Last verified: 2026-08-20. Review by: 2027-08-20.
Part of [Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference](https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/).