The Chicago transfer tax is a flat $5.25 for every $500 of the sale price whenever real estate inside city limits changes hands. That total splits into two pieces: $3.75 per $500 as the city portion, customarily paid by the buyer, and $1.50 per $500 as the CTA portion earmarked for the Chicago Transit Authority, customarily paid by the seller.1City of Chicago. Real Property Transfer Tax (7551) Illinois and Cook County add their own transfer taxes on top, so the full bill at closing is bigger than the city rate alone.
How the Tax Is Calculated
The rate is flat, not graduated. Take the sale price, divide by $500, round any fraction up to the next whole unit, and multiply by $5.25. A $400,000 sale produces 800 units and $4,200 in Chicago transfer tax. A $750,000 sale produces 1,500 units and $7,875. The $3.75 city portion and $1.50 CTA supplemental portion have been combined at this rate since the CTA piece took effect on April 1, 2008.2Municipal Code of Chicago. Chicago Municipal Code 3-33-030 Tax Imposed
A March 2024 ballot measure called Bring Chicago Home proposed replacing the flat rate with graduated brackets that would have charged more on sales above $1 million. Voters rejected it, and the flat $5.25 per $500 still applies to every sale regardless of price.3Ballotpedia. Chicago, Illinois, Ballot Question 1, Real Estate Transfer Tax Measure (March 2024)
Who Pays Which Portion
By default, the buyer owes the $3.75 city portion and the seller owes the $1.50 CTA portion.1City of Chicago. Real Property Transfer Tax (7551) On that $400,000 sale, the buyer’s share is $3,000 and the seller’s is $1,200. Both appear as line items on the closing statement.
The purchase contract can reassign these amounts. Sellers sometimes agree to absorb the buyer’s portion as a concession, or the parties split the total evenly. The city doesn’t care how the parties divide it, as long as the full $5.25 per $500 gets paid before stamps are issued. If the tax goes unpaid, the Cook County Recorder of Deeds refuses to record the deed, and the buyer has no recorded proof of ownership.4Municipal Code of Chicago. Chicago Municipal Code Chapter 3-33 – Chicago Real Property Transfer Tax
State and County Transfer Taxes on Top
Illinois charges $0.50 per $500, and Cook County adds $0.25 per $500. Stacked with Chicago’s $5.25, the all-in rate is $6.00 per $500, or 1.2 percent of the sale price. On a $400,000 sale, the full picture looks like this:
- Chicago city and CTA portions: $4,200
- Cook County: $200
- Illinois state: $400
- Total transfer taxes: $4,800
The state and county portions are customarily paid by the seller, though the contract can shift them like the city portions. Budget for all three layers, not just the city tax.
Exempt Transfers
Section 3-33-060 of the Municipal Code lists transfers that don’t trigger the Chicago tax.5Municipal Code of Chicago. Chicago Municipal Code 3-33-060 Exempt Transfers The ones most buyers and sellers encounter:
- Transfers to or from a government body, or involving organizations operating exclusively for charitable, religious, or educational purposes
- Deeds that secure a debt, such as a mortgage given to a lender
- Corrective or confirmatory deeds that fix an error in a previously recorded document without new payment
- Transfers where the total price is under $500
- Foreclosures and deeds in lieu of foreclosure to the mortgage holder
- Corporate reorganizations between a parent and subsidiary, or between subsidiaries of the same parent, with no real change in beneficial ownership
- Transfers under a confirmed Chapter 11 plan of reorganization
- Enterprise zone property used primarily for commercial or industrial purposes
- Tax deeds, and partition deeds (taxable only on consideration paid for a share exceeding the party’s original undivided interest)
No transfer is exempt automatically. The declaration has to state the facts supporting the exemption and include documentation. Without a valid exemption code and verification, the city requires full payment before issuing stamps.1City of Chicago. Real Property Transfer Tax (7551)
Senior Refund of the CTA Portion
Buyers age 65 or older who purchase a Chicago property for $250,000 or less can apply for a refund of the $1.50 per $500 CTA portion after closing. The buyer must occupy the home as a principal residence for at least one year following the transfer, and the refund application has to reach the Chicago Department of Finance within three years of the transfer date.6City of Chicago. Real Property Transfer Tax Refund – Seniors On a $250,000 purchase, that’s $750 back.
What You Need Before Buying Stamps
Two city certificates can hold up a closing if nobody starts the paperwork early.
Full Payment Certificate for Water and Sewer
Every Chicago property transfer requires a Full Payment Certificate from the Department of Water Management confirming that all water and sewer charges on the property are paid, even when the transfer itself is exempt from the transfer tax. Without it, you cannot buy stamps and the deed cannot be recorded.7City of Chicago. Full Payment Certificates
The application fee is $50, waived for transfer-tax-exempt transactions when the application is marked accordingly. You’ll submit the property’s legal description with a copy of the signed deed, a title commitment showing buyer and seller, or a signed sales contract. Skip the certificate and both buyer and seller become jointly liable for any outstanding utility charges, penalties, and fees on the account.7City of Chicago. Full Payment Certificates
Certificate of Zoning Compliance
Residential buildings with five or fewer dwelling units need a Certificate of Zoning Compliance before the sale can close, confirming the property’s current use matches its zoning. Condominiums and cooperatives are excluded, as are buildings with six or more units, vacant land, and commercial buildings.8City of Chicago. Certificate of Zoning Compliance The certificate catches illegal conversions, such as a single-family home carved into multiple apartments without permits. Any building with more than one kitchen is treated as multi-unit unless the extra kitchen is clearly accessory.
Filing the Declaration and Buying Stamps
Every Chicago transfer tax declaration is filed online through the MyDec system on the Illinois Department of Revenue’s MyTax portal. Paper and mailed forms are not accepted.9City of Chicago. MyDec – Real Property Transfer Tax The declaration asks for the Permanent Index Number (PIN), the full legal description, the sale price, and names and addresses for both buyer and seller.10Illinois Department of Revenue. Real Estate Transfer Tax – Individuals, Title Companies and Settlement Agencies MyDec validates the PIN against county assessor data and auto-calculates the tax.
Once the declaration is approved, you can buy stamps in person at City Hall (121 N. LaSalle Street, Room 107), at the Department of Finance office at 400 W. Superior Street, or through an authorized title company registered to print stamps on the city’s behalf. Most residential closings run through a title company, which files the declaration, buys the stamps, and handles recording as part of its closing services. The stamps have to be affixed to the deed before the Cook County Recorder of Deeds will accept it.4Municipal Code of Chicago. Chicago Municipal Code Chapter 3-33 – Chicago Real Property Transfer Tax
Late Payment Interest
Stamps that aren’t purchased on time accrue interest at 12 percent per year on the unpaid tax. You can email the Department of Finance’s tax policy team to request abatement of interest and penalties, but the department decides based on its own internal ruling.9City of Chicago. MyDec – Real Property Transfer Tax The clock starts right away, so don’t let the stamp purchase trail the closing. Title companies take care of this in most deals; for-sale-by-owner transactions and private family transfers are where delays tend to show up.