Illinois and Chicago real estate transfer tax: rates, who pays

What does the state charge?

The state tax is imposed on the privilege of transferring title to Illinois real estate, a beneficial interest in it, or a controlling interest in a real estate entity. The rate is 50 cents for each $500 of value or fraction of $500 stated in the transfer declaration (35 ILCS 200/31-10). If the deed says the property is transferred subject to a mortgage, the mortgage balance still outstanding is left out of the tax base. “Value” means the full actual consideration, including any lien the buyer assumes (§ 31-5).

Because the rate applies to every $500 “or fraction,” you round the price up to the next $500 before multiplying.

The county recorder collects the tax through revenue stamps. The statute says paper stamps were to be phased out by December 31, 2025, with electronic stamps or another indicator used afterward (§ 31-15). A deed is not accepted for recording without the stamps (§ 31-20).

What does Cook County charge?

The Cook County Clerk’s transfer fee table lists the State of Illinois at $0.50 per $500 and Cook County at $0.25 per $500, both with the seller shown as the party liable, as of October 2026. Illinois law allows a home rule county to impose or raise such a tax only after the steps in 55 ILCS 5/5-1031.1, which include a referendum. Check the Clerk’s table for the current rate.

What does Chicago charge?

The City of Chicago taxes the transfer of real property in the city at $5.25 per $500 of the transfer price, or fraction. It is made of two parts:

• City portion: $3.75 per $500.
• CTA portion: $1.50 per $500, added for transfers on or after April 1, 2008, to fund the Chicago Transit Authority.

The Department of Finance page reads as a single flat rate, as of October 2026. It says that in general the buyer is responsible for the $3.75 and the seller for the $1.50. The state and county taxes are shown with the seller as the party liable on the Clerk’s table. Contracts can allocate the amounts differently, so read yours.

Who pays?

Example: a home at Chicago’s median value

The Census Bureau’s 2024 American Community Survey (1-year) gives a median value of $341,200 for owner-occupied homes in the city of Chicago. This example uses that figure as a price. It is an illustration, not a sale price. $341,200 holds 682.4 units of $500, so 683 units are taxed.

Under those assignments the buyer owes $2,561.25 and the seller $1,536.75. Outside Chicago, suburbs may have their own municipal tax; the Clerk’s table lists each municipality.

Which transfers are exempt?

Illinois exempts, among others, deeds to or from governmental bodies, deeds that secure a debt, deeds that only correct or confirm a recorded deed, deeds where the consideration is under $100, tax deeds, deeds issued to a mortgage holder in foreclosure or in lieu of it, and the purchase of a principal residence by a participant in the Home Ownership Made Easy program (35 ILCS 200/31-45). Most of these deeds must still file the declaration. Chicago has its own list in Municipal Code 3-33-060, and says no transfer is exempt unless the declaration states the facts and attaches proof.

Chicago also refunds the CTA portion when the buyer is 65 or older, lives in the home for at least one year after the transfer, and the price is $250,000 or less. The Department of Finance administers this refund. The state declaration is signed by at least one seller and one buyer, or their agents, and filed with the deed or within three business days of the transfer (§ 31-25).

For the rest of the bill, see closing costs in Illinois, the Chicago guide and closing costs explained.