United States version
How it works
Keep the dealer trade allowance used in a confirmed tax rule separate from the equity remaining after the old vehicle loan is repaid.
This is the United States planning view, with monetary inputs and outputs in USD. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
6-
?purchasePrice=Taxable purchase price before trade allowanceMoney · Required · Default: 35,000
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?tradeAllowance=Dealer trade-in allowance, not equityMoney · Required · Default: 12,000
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?oldLoanBalance=Loan balance to repay on traded vehicleMoney · Required · Default: 7,000
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?salesTaxRate=Confirmed applicable purchase tax ratePercentage · Required · Default: 6.25
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?creditPermitted=Verified local rules permit this trade-in allowance to reduce this tax baseTrue or false · Optional · Default: false
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?confirmedCreditCap=Confirmed maximum allowance eligible for tax-base creditMoney · Required · Default: 0
Outputs
5-
tradeEquityTrade-in equity after old loan payoffCurrency · Primary output · Currency: USD
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eligibleAllowanceTrade allowance eligible under entered capCurrency · Currency: USD
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taxableBaseModeled taxable purchase baseCurrency · Currency: USD
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salesTaxModeled tax under entered ruleCurrency · Currency: USD
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taxSavingTax-base credit savingCurrency · Currency: USD
Formula
eligible tax-base credit = permitted ? minimum(trade allowance, confirmed cap, purchase price) : 0.
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Taxable purchase price before trade allowance: Enter the quantity described by the label.
- Dealer trade-in allowance, not equity: Enter the quantity described by the label.
- Loan balance to repay on traded vehicle: Enter the quantity described by the label.
- Confirmed applicable purchase tax rate: Enter the quantity described by the label.
- Verified local rules permit this trade-in allowance to reduce this tax base: Enter the quantity described by the label. Leave this unconfirmed until you have actually checked the required condition.
- Confirmed maximum allowance eligible for tax-base credit: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
| Input | Example value |
|---|---|
| Taxable purchase price before trade allowance | 35,000 |
| Dealer trade-in allowance, not equity | 12,000 |
| Loan balance to repay on traded vehicle | 7,000 |
| Confirmed applicable purchase tax rate | 6.25 |
| Verified local rules permit this trade-in allowance to reduce this tax base | false |
| Confirmed maximum allowance eligible for tax-base credit | 0 |
| Output | Calculated result |
|---|---|
| Trade-in equity after old loan payoff | USD 5,000 |
| Trade allowance eligible under entered cap | USD 0 |
| Modeled taxable purchase base | USD 35,000 |
| Modeled tax under entered rule | USD 2,187.5 |
| Tax-base credit saving | USD 0 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Prices, consumption and contract terms are entered scenarios. This is not a retail quote, tax eligibility determination or vehicle safety certification.
- Vehicle class, transaction timing, same-dealer requirements, local tax bases and exemptions require verified state rules. A negative trade equity balance is financing, not a reduction in the trade allowance.
Frequently asked questions
What does this Vehicle Trade-In Tax Credit result represent?
Keep the dealer trade allowance used in a confirmed tax rule separate from the equity remaining after the old vehicle loan is repaid. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified United States prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is USD; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Prices, consumption and contract terms are entered scenarios. This is not a retail quote, tax eligibility determination or vehicle safety certification.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- DOE energy-use arithmetic — retrieved 2026-09-24. Energy consumption versus power; not a local tariff or an approval of this implementation.
- NIST unit conversion guidance — retrieved 2026-09-24. Unit definitions; geometry and financial arithmetic in these worksheets are explicitly stated.
- CFPB loan-estimate explanation — retrieved 2026-09-24. US cost components; the general amortization formula is stated separately.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.