Your sales tax and tag fees are based on these items:
When the new Illinois sales tax law goes into effect, the sales tax you pay for a new or used car will be based on the city you live in. For example:
When you lease a car in Illinois, you pay the sales tax on the cost of your new or used car. However, you’ll only owe tax on your monthly payment rather than on the total value of your vehicle. If you decide to purchase your vehicle at the end of your lease, you’ll pay a sales tax on the depreciated price.
When you trade-in your old car, you can lower the amount you pay for your new vehicle. If the dealership can sell your trade-in, you will be taxed on the new reduced price. With the new Illinois tax law, a sales new tax will be applied to a trade-in value above $10,000. For example, if you trade-in your current Volkswagen and receive a trade-in value of $10,000 – and then you buy a new car for $45,000 – you’ll pay a sales tax on the remaining $35,000. With the new tax law, Countryside drivers will be paying an additional $3,412.50 in taxes (with a tax rate of 9.75%).
If you’re a resident of Naperville, Illinois and purchase a vehicle in a state where there is a lower sales tax, you must pay the difference to the Illinois Department of Revenue because the Illinois Vehicle Code has a Use Tax for the privilege of driving the vehicle in Illinois.
Managing the taxes, fees, and the price of buying a new car in Illinois can be confusing, and with the new sales tax law, it can become even more complicated. Contact us with your questions and our team of financial experts will help you organize all the costs for a new vehicle. We’ll also help you apply for financing to make sure you’re getting the best deal for your budget.
Enter basic information to figure out the estimated auto loan rate or monthly payment amount for a new Volkswagen! Contact us with any questions you may have.
Phone: (708) 469-4248http://maps.google.com/?q=6161%20Joliet%20Rd.%2C%20Countryside%2C%20IL%2060525