Yes! For example: 1. You want to buy a $1500 guitar. 2. You trade us a used guitar with $1000 trade credit - so you then owe us $500 in cash. 3. You will only pay tax on the cash-paid balance. For this example assuming you are in Onondaga Country with 8% sales tax: Instead of paying $1500 x 8% = $120 in sales tax, you will only pay $500 x 8% = $40 in sales tax, a huge savings of $80!