Every state is different. When I lived in Illinois you paid the tax if the entire vehicle, regardless if there was a trade or not. In Missouri you get a credit whether you sell your car out right or trade. Only kicker is you have to sell your car before you title your new one(within 30 days), and have to buy the new one within 6 months of selling the old one.
I normally sell my vehicles on Craigslist, then use the bill of sale for the tax exclusion. The last one I traded, but I couldn't have sold it for much more than I traded it for. I don't know what they got for my truck, but I traded it for 37 and they had it listed for 37,900 on their website. Sold in 3 weeks. Only reason I paid attention is because they over paid for my truck [emoji16].
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