When you buy or sell property in Illinois, a transfer tax is due at closing — before the deed can even be recorded. The amount you owe depends on where the property is located, the sale price, and whether any exemptions apply. This guide walks through the exact math the calculator uses, step by step, so you know what to expect before you reach the closing table.
What Is the Illinois Real Estate Transfer Tax?
Illinois law (35 ILCS 200/31-1 et seq.) imposes a tax on the privilege of transferring title to Illinois real property. That means every time a deed changes hands — whether through a sale, a quitclaim, or certain trust assignments — a tax is owed and must be paid before the county recorder will accept the deed for recording.[1]
The tax is collected by purchasing revenue stamps, which are physically affixed to the deed. Think of them as a receipt that proves the tax was paid. There are up to three layers of tax stacking on top of each other: a statewide tax, a county tax, and — in many cities and villages — a local municipal tax.[2]
Step 1: Calculate the Taxable Base
The very first thing the calculator does is figure out exactly how much of your transaction is actually subject to tax. Illinois law excludes any mortgage balance that the buyer is assuming from the calculation — you only pay tax on the equity changing hands.[3]
The formula: Taxable Base = Sale Price − Mortgage Assumed
If the taxable base works out to zero or less, no tax is owed at all.
Example A — Simple Cash Sale
Sale price: $350,000 | Mortgage assumed: $0
Taxable Base = $350,000 − $0 = $350,000
Example B — Buyer Assumes Existing Mortgage
Sale price: $500,000 | Mortgage assumed: $200,000
Taxable Base = $500,000 − $200,000 = $300,000
Step 2: Determine the State Tax Rate
Illinois’s statewide rate has two tiers depending on when the transfer occurs. For transfers recorded before July 1, 2026, the rate is $0.50 per every $500 of taxable value. After that date, a legislative change raises it to $0.75 per $500.[4]
The calculator automatically looks at the transfer date you enter and applies the correct rate — no manual switching required.
Example A — Transfer Dated May 9, 2026 (Before Rate Change)
Transfer date: May 9, 2026
State rate applied: $0.50 per $500
Example B — Transfer Dated September 1, 2026 (After Rate Change)
Transfer date: September 1, 2026
State rate applied: $0.75 per $500
Step 3: Calculate the State Transfer Tax
Once the rate is set, the calculator divides the taxable base by $500, then rounds that number up to the nearest whole number. This upward rounding is required by Illinois law — any fraction of a $500 increment is treated as a full $500.[1] The result is the number of “tax units,” and you multiply those units by the state rate.
Example A — Clean Division (Pre-July 2026 Rate)
Taxable base: $300,000 | Rate: $0.50
Tax units: $300,000 ÷ $500 = 600 (no rounding needed)
State Tax = 600 × $0.50 = $300.00
Example B — Rounding Up (Post-July 2026 Rate)
Taxable base: $300,250 | Rate: $0.75
Tax units: $300,250 ÷ $500 = 600.5 → rounded up to 601
State Tax = 601 × $0.75 = $450.75
Step 4: Calculate the County Transfer Tax
Every one of Illinois’s 102 counties charges an additional $0.25 per $500 of taxable value.[5] The same tax-unit logic applies — divide the taxable base by $500, round up, and multiply. The county rate is uniform statewide, so whether you’re in Cook, DuPage, Lake, or any other county, this portion of the math is identical.
Example A — Cook County (Chicago Suburb)
Taxable base: $300,000
Tax units: $300,000 ÷ $500 = 600
County Tax = 600 × $0.25 = $150.00
Example B — DuPage County
Taxable base: $450,000
Tax units: $450,000 ÷ $500 = 900
County Tax = 900 × $0.25 = $225.00
Step 5: Calculate the Municipal Transfer Tax
This is where things get more complicated — and where the biggest variation in your closing costs will come from. Illinois home-rule municipalities (generally cities with populations over 25,000) can levy their own transfer taxes on top of state and county amounts.[6]
Chicago is the most well-known example, but dozens of other cities and villages have their own rates. The calculator handles four different scenarios:
No Municipal Tax
If your property is in an unincorporated area or a municipality without a transfer tax, the municipal portion is simply $0.
Chicago (Two Separate Taxes)
Chicago has two distinct municipal taxes that are paid by different parties at closing. The City portion is $3.75 per $500, paid by the buyer. The CTA (transit) portion is $1.50 per $500, paid by the seller.[7][8] Both use the per-$500 unit logic.
Example A — Chicago Property, $400,000 Taxable Base
Tax units: $400,000 ÷ $500 = 800
City Tax (Buyer): 800 × $3.75 = $3,000.00
CTA Tax (Seller): 800 × $1.50 = $1,200.00
Total Chicago Municipal Tax = $4,200.00
Example B — Chicago Condo, $250,000 Taxable Base
Tax units: $250,000 ÷ $500 = 500
City Tax (Buyer): 500 × $3.75 = $1,875.00
CTA Tax (Seller): 500 × $1.50 = $750.00
Total Chicago Municipal Tax = $2,625.00
Other Home-Rule Municipalities
For cities like Addison, Aurora, Cicero, Berwyn, and others, the rate is typically expressed per $1,000 (rather than per $500). The calculator divides by $1,000, rounds up, and multiplies. Some municipalities also set a minimum tax amount.[9][10]
| Municipality | Rate | Paid By | Minimum |
|---|---|---|---|
| Addison (DuPage) | $2.50 / $1,000 | Buyer | $50 |
| Aurora (DuPage/Will/Kane) | $3.00 / $1,000 | Seller | — |
| Cicero (Cook) | $10.00 / $1,000 | Seller | — |
| Berwyn (Cook) | $10.00 / $1,000 | Seller | — |
| Lincolnshire (Lake) | $3.00 / $1,000 | Buyer | — |
| Buffalo Grove (Lake) | $3.00 / $1,000 | Seller | — |
| North Chicago (Lake) | $1.00 / $1,000 | Buyer | — |
Example A — Addison, $300,000 Taxable Base
Tax units: $300,000 ÷ $1,000 = 300
Calculated tax: 300 × $2.50 = $750.00 (above $50 minimum)
Addison Municipal Tax (Buyer) = $750.00
Example B — Cicero, $150,000 Taxable Base
Tax units: $150,000 ÷ $1,000 = 150
Calculated tax: 150 × $10.00 = $1,500.00
Cicero Municipal Tax (Seller) = $1,500.00
Step 6: Add It All Up — Total Transfer Tax
The final total is simply State Tax + County Tax + Municipal Tax. The calculator also breaks this down by who pays what at closing, since in Chicago — and sometimes other municipalities — the buyer and seller owe separate portions.
Example A — Chicago Sale, $500,000 Price, $200,000 Mortgage Assumed (Pre-July 2026)
Taxable base: $300,000 | Tax units (per $500): 600
State Tax: 600 × $0.50 = $300.00
County Tax: 600 × $0.25 = $150.00
City Tax (Buyer): 600 × $3.75 = $2,250.00
CTA Tax (Seller): 600 × $1.50 = $900.00
Grand Total = $300 + $150 + $2,250 + $900 = $3,600.00
Example B — Suburban Cook County, $400,000 Cash Sale (Post-July 2026)
Taxable base: $400,000 | Tax units (per $500): 800 | No municipal tax
State Tax: 800 × $0.75 = $600.00
County Tax: 800 × $0.25 = $200.00
Grand Total = $600 + $200 = $800.00
Exemptions: When No Tax Is Owed
Illinois law (35 ILCS 200/31-45) carves out several categories of transfer that are entirely exempt from tax.[11] The calculator includes a dropdown where you can flag the applicable exemption, and the relevant taxes drop to zero. Common exemptions include:
Government and charitable transfers — Conveyances to or from federal, state, or local governments, or to qualifying nonprofit or religious organizations, are fully exempt.
Debt-related deeds — Deeds in lieu of foreclosure, mortgage satisfactions, and transfers to a lender on default are exempt. Illinois also does not tax the mortgage balance itself, only the equity.
Corrective and partition deeds — A deed that merely corrects an earlier recorded document (with no new consideration), or a partition deed splitting co-owned property, is exempt as long as no additional money changes hands.
Low-value transfers — Any transfer with consideration under $100 is exempt entirely.
Chicago-specific exemptions — Chicago waives the municipal tax for transfers between spouses or by court divorce decree of a primary residence, and for properties inside a designated Enterprise Zone. Seniors aged 65 or older purchasing a home priced at $250,000 or less may be eligible for a refund of the CTA portion after closing.[12]
Corporate transfers — Transfers between a parent company and a wholly owned subsidiary, or certain transfers within bankruptcy or federal tax reorganizations, are also exempt.
Important: Even if a transfer is exempt, Illinois still generally requires both parties to complete and file Form PTAX-203 (the Illinois Real Estate Transfer Declaration) with the county recorder at the time of recording. The form simply notes the applicable exemption code. Failing to file — or knowingly falsifying the form — can result in penalties and is classified as a misdemeanor under Illinois law.[13]
Filing Requirements and Deadlines
The tax — and the required PTAX-203 form — must be paid and filed at the time of recording, or within three business days after the deed is delivered.[1] Cook County uses an electronic system called MyDec in place of paper stamps. Chicago properties also require a Certificate of Zoning Compliance for most one- to five-family residential sales before the city will issue its tax stamp — though condominiums are exempt from this requirement.[14]
Late payment triggers interest under the Illinois Uniform Penalty and Interest Act (generally 1% per month) plus additional penalties. In Chicago, unpaid transfer taxes become a lien against the property itself.
A Note on Custom Rates
The calculator also allows you to enter a custom municipal rate if your city or village isn’t in the preset list. Illinois has dozens of home-rule municipalities with transfer taxes — typically ranging from $1 to $10 per $1,000 of sale price — and rates can change by local ordinance at any time.[9] For the most current rate in your specific municipality, always verify with your city or village finance department or your county clerk’s office before closing.
Legal References & Sources
- 35 ILCS 200/31-1 et seq. — Illinois Real Estate Transfer Tax Law. Establishes the statewide tax, revenue stamp requirement, and recording rules.
- Illinois Department of Revenue, Form PTAX-203 Instructions — Official guidance on completing the Illinois Real Estate Transfer Declaration, including exemption codes and filing requirements.
- 35 ILCS 200/31-10 — Defines the tax base and exclusion of mortgage balances from taxable consideration.
- Illinois Public Act (Rate Change) — Legislative change raising the state rate from $0.50 to $0.75 per $500, effective July 1, 2026.
- 35 ILCS 200/31-20 — Authorizes county governments to impose up to $0.25 per $500; all 102 Illinois counties currently impose this maximum rate.
- 35 ILCS 200/31-25 — Home-rule authority for municipalities with populations over 25,000 to levy additional transfer taxes by ordinance.
- Chicago Municipal Code §3-33-030 — Establishes the Chicago city transfer tax at $3.75 per $500, paid by the buyer.
- Chicago Municipal Code §3-33-040 — Establishes the Chicago CTA (transit) transfer tax at $1.50 per $500, paid by the seller.
- Summit Title Company, Illinois Municipal Transfer Tax Rate Sheet — Industry-compiled list of home-rule municipal rates; rates verified against individual city codes.
- Town of Cicero Ordinance / City of Berwyn Ordinance — Local ordinances establishing $10.00 per $1,000 seller-paid transfer tax.
- 35 ILCS 200/31-45 — Full statutory list of exempt transfers, including governmental, charitable, debt-related, corrective, partition, low-value, and corporate reorganization exemptions.
- Chicago Municipal Code §3-33-060 — Chicago-specific exemptions, including family transfers, Enterprise Zone property, and the senior homeowner CTA refund program.
- 35 ILCS 200/31-70 and 35 ILCS 735 — Penalty and interest provisions for unpaid or underpaid transfer taxes; criminal classification for falsified declarations.
- Chicago Municipal Code §3-33-045 — Certificate of Zoning Compliance requirement for residential (non-condo) property sales within the City of Chicago.
This article is for informational purposes only and does not constitute legal or tax advice. Tax rates and exemption rules change frequently by legislation and local ordinance. Always verify current rates with the Illinois Department of Revenue, your county recorder’s office, or a licensed real estate attorney before closing.