Published · Mike Certo, NMLS #260555
The Chicago transfer tax, explained: who pays what, and the mansion tax that never happened.
Two things surprise people about buying in Chicago. The transfer tax is much higher than the rest of Illinois, and unlike almost everywhere else, the buyer pays part of it. Here is the real split, plus a correction on the "mansion tax" you may have read about.
The rest of Illinois first
Outside Chicago, Illinois keeps its transfer tax low and puts it on the seller. The state charges $0.50 per $500 of price, the county adds $0.25 per $500, and that is it in most towns: $1.50 per $1,000, or 0.15%. On a $338,000 home, the statewide median, the seller pays about $507 in stamps. Home-rule suburbs can add their own, but the base is small.
Chicago is a different animal
Chicago sets its own rate as a home-rule city, and it is far higher: $5.25 per $500 of price, which is 1.05%. The part that catches buyers off guard is who pays. The buyer covers the $3.75 per $500 city portion, and the seller covers the $1.50 per $500 that funds the CTA. Add the state and county stamps, which stay with the seller, and both sides have a transfer-tax line at a Chicago closing.
| Piece | Rate | Who pays | On a $425,000 home |
|---|---|---|---|
| State + county stamps | $0.75 per $500 | Seller | ≈ $638 |
| Chicago city portion | $3.75 per $500 | Buyer | ≈ $3,188 |
| Chicago CTA portion | $1.50 per $500 | Seller | ≈ $1,275 |
Rates per 35 ILCS 200 Article 31 and the Chicago transfer-tax ordinance, verified August 2026.
The mansion tax that never happened
You may have seen headlines about a Chicago "mansion tax" on high-value sales. It did not pass. The Bring Chicago Home referendum, which would have replaced the flat rate with a graduated one on properties over $1 million, failed at the ballot on March 19, 2024. The flat $5.25 per $500 split still governs every Chicago sale. If a calculator quotes you a higher graduated rate above a million dollars, it is using a proposal that voters rejected.
Budgeting the buyer side
For a Chicago buyer, the city transfer portion is a real number to plan for, on top of the usual 2% to 5% in closing costs. This is where an IHDA second helps. IHDAccess Home gives 6% of the price up to $15,000, and IHDA's other options run from 4% to 10%, all applied to down payment and closing. The down payment assistance guide shows how they layer, and the closing-cost page lays out the rest.
Chicago transfer tax FAQ
Who pays the transfer tax in Chicago?
Both parties. Chicago's total is $5.25 per $500 of price. The buyer pays the $3.75 per $500 city portion, and the seller pays the $1.50 per $500 CTA portion plus the Illinois state and county stamps. That buyer-paid piece is unusual, since across the rest of Illinois the seller pays the transfer tax. On a $425,000 Chicago home the buyer's portion is about $3,188.
Did Chicago pass a mansion tax?
No. The Bring Chicago Home referendum, which would have added a graduated transfer tax on sales over $1 million, failed on March 19, 2024. Chicago's flat $5.25 per $500 split applies to every sale regardless of price. Any calculator showing a higher graduated Chicago rate is out of date.
How much is the transfer tax outside Chicago?
Much less. Illinois charges $0.50 per $500 in state tax and $0.25 per $500 in county tax, which is $1.50 per $1,000 combined, or 0.15%, and the seller customarily pays it. On a $338,000 home that is about $507. Some home-rule suburbs add their own municipal tax, so confirm the rate where you are buying.
Figures verified against 35 ILCS 200, the Chicago ordinance, and FHFA, August 2026. Home-rule rates change; confirm with the local recorder. This is not a commitment to lend.