Updated · Mike Certo, NMLS #260555
Illinois Transfer Tax and Closing Costs (2026)
Illinois keeps its transfer tax low almost everywhere, and the seller pays it. Chicago is the exception on both counts: the rate is far higher, and the buyer picks up part of the bill. Here is how the stamps work statewide, what Chicago actually costs, and where it fits in your closing.
How the Illinois transfer tax works
Outside Chicago, Illinois keeps it simple. The state charges $0.50 per $500 of price, and the county adds $0.25 per $500. Combined, that is $1.50 per $1,000, or 0.15% of the price. The seller customarily pays both stamps. On a $338,000 home, the statewide median, that is about $507 total, and it lands on the seller's side of the settlement statement.
Why Chicago is different
Chicago is a home-rule city, so it sets its own transfer tax, and it is much higher. The total is $5.25 per $500 of price, which is 1.05%. What surprises people is the split. The buyer pays the $3.75 per $500 city portion, and the seller pays the $1.50 per $500 supplemental that funds the CTA. Add the state and county stamps, which the seller pays, and both sides have a line at a Chicago closing.
| Location | Rate | Who pays | On a $425,000 home |
|---|---|---|---|
| Illinois state + county | $0.75 per $500 (0.15%) | Seller | ≈ $638 |
| Chicago city portion | $3.75 per $500 (0.75%) | Buyer | ≈ $3,188 |
| Chicago CTA portion | $1.50 per $500 (0.30%) | Seller | ≈ $1,275 |
Rates per 35 ILCS 200 Article 31 and the Chicago transfer-tax ordinance, verified August 2026. Home-rule municipalities outside Chicago may set their own rates; confirm with the local recorder.
The mansion tax that did not happen
You may have read that Chicago added a graduated "mansion tax" on expensive sales. It did not. The Bring Chicago Home referendum, which would have raised the rate 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, high value or not. If a calculator quotes you a higher graduated rate, it is wrong.
What else is in Illinois closing costs?
Transfer stamps are only one line. Plan for total closing costs in the range of 2% to 5% of the price on the buyer side, depending on your loan and county. The usual pieces:
- Title insurance and search at Illinois rates, plus settlement and escrow fees.
- Lender and third-party fees (appraisal, credit, flood certification) itemized on your Loan Estimate.
- Prepaids and escrows for homeowners insurance and property taxes, which run high in Cook and the collar counties.
- Recording fees charged by the county recorder.
- The buyer's Chicago transfer-tax portion, if you are buying in the city.
An IHDA second is built for the buyer side of this. IHDAccess Home gives 6% of the price up to $15,000, and the other IHDA options run from 4% to 10%, all applied to down payment and closing. The down payment assistance page shows how they layer.
When does an Illinois purchase become a jumbo loan?
Above $832,750. That is the 2026 conforming limit, and in Illinois it applies in every one of the 102 counties, because no Illinois county qualifies as high-cost, not even Cook, DuPage, or Lake. Cross the limit and you are in jumbo territory, with stricter underwriting and usually a larger down payment. In Chicago and the North Shore suburbs it comes up often; downstate it is rare. Mike runs both agency and jumbo, so a price near the line does not force a scramble.
Illinois transfer tax FAQ
How much is the transfer tax when I sell in Illinois?
Outside Chicago, 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. Home-rule cities can set their own rate on top, so a municipal tax may apply where you buy.
How does the Chicago transfer tax split between buyer and seller?
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. The buyer-paid piece is unusual, since across the rest of Illinois the seller pays the stamps. On a $425,000 Chicago home the buyer's city portion is about $3,188. The state and county stamps are also the seller's.
Did Chicago pass a mansion tax?
No. The Bring Chicago Home referendum, which would have added a graduated transfer tax on properties over $1 million, failed on March 19, 2024. Chicago's flat $5.25 per $500 split still applies to every sale, regardless of price. Calculators that show a higher graduated Chicago rate are out of date.
What is the 2026 conforming loan limit in Illinois?
$832,750 on a one-unit home in every Illinois county for 2026, including Cook, DuPage, and Lake. Illinois has no high-cost conforming county, so the same limit applies statewide. Above it, an Illinois loan is a jumbo, which carries stricter underwriting and typically a larger down payment.