The state currently collects no sales tax on a car's trade-in value, which acts as credit toward a new vehicle purchase. By law, sales tax only applies to the difference between trade-in value and the new vehicle's purchase price.
THAT ALL ENDS JANUARY 1, 2020, when trade-ins valued at $10,000 or more will be subject to a state tax IN ADDITION to the taxable difference between trade-in and new vehicle price.
