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 figure combines a $3.75 city portion, paid by the buyer by default, and a $1.50 CTA portion earmarked for the Chicago Transit Authority, 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 all-in rate on a Chicago closing statement is $6.00 per $500, or 1.2 percent of the price.
How to Calculate What You Owe
The rate is flat, not bracketed. Divide the sale price by $500, round any fraction up to the next whole unit, and multiply by $5.25.2Municipal Code of Chicago. Chicago Municipal Code 3-33-030 Tax Imposed
A $400,000 sale produces 800 units, so the city transfer tax is $4,200. A $750,000 sale produces 1,500 units, or $7,875. The $3.75 city component and the $1.50 CTA component (in effect since April 1, 2008) are both baked into that $5.25.
Who Pays the City Portion and Who Pays the CTA Portion
Under the ordinance, the buyer owes the $3.75 city portion and the seller owes the $1.50 CTA portion. On a $400,000 sale, the buyer’s share is $3,000 and the seller’s share is $1,200. Both show up as separate line items on the closing statement.
Purchase contracts can reassign these amounts. It’s common for the parties to split the total evenly or for a seller to pick up the buyer’s share as a concession. The city doesn’t care who writes the check, but it wants the full $5.25 per $500 before it issues stamps. If the tax isn’t paid, the Cook County Recorder of Deeds will refuse to record the deed, and the buyer ends up with no recorded proof of title.3Municipal Code of Chicago. Chicago Municipal Code Chapter 3-33 – Chicago Real Property Transfer Tax
State and County Taxes That Stack on Top
Illinois charges $0.50 per $500 of sale price, and Cook County charges $0.25 per $500. Add those to Chicago’s $5.25 and the combined transfer tax rate is $6.00 per $500, which is $1.20 per $100, or 1.2 percent of the price.
On a $400,000 sale, the full picture looks like this:
- Chicago city and CTA: $4,200
- Cook County: $200
- Illinois state: $400
- Total transfer taxes: $4,800
The state and county portions are customarily paid by the seller. Contracts can shift them, but budgeting for a Chicago closing means accounting for all three layers, not just the city tax.
Transfers That Are Exempt
Section 3-33-060 of the Municipal Code lists the transfers that don’t trigger the city tax. The ones people most often ask about:4Municipal Code of Chicago. Chicago Municipal Code 3-33-060 Exempt Transfers
- Transfers to or from a government body, or to organizations operating exclusively for charitable, religious, or educational purposes.
- Deeds securing a debt, such as a mortgage given to a lender.
- Corrective or confirmatory deeds that fix an error without new money changing hands.
- Transfers under $500.
- Foreclosures and deeds in lieu of foreclosure, where the deed goes to the mortgage holder.
- Corporate reorganizations between a parent and subsidiary, or between subsidiaries of the same parent, when there’s no real change in beneficial ownership.
- Bankruptcy transfers under a confirmed Chapter 11 plan.
- Enterprise zone property used primarily for commercial or industrial purposes.
- Tax deeds and partition deeds, though partition deeds are taxable on any consideration paid for a share exceeding a party’s original undivided interest.
Exemptions are not automatic. The MyDec declaration has to state the exemption, cite the code, and include supporting documentation. Without a valid exemption, the city expects full payment before issuing stamps.
Senior Refund on the CTA Portion
A buyer age 65 or older who purchases a property for $250,000 or less can apply for a refund of the CTA portion of the tax after closing. The buyer has to occupy the property as a principal residence for at least one year, and the refund application must reach the Chicago Department of Finance within three years of the transfer.5City of Chicago. Real Property Transfer Tax Refund – Seniors On a $250,000 purchase, the refund is $750.
Certificates You Need Before Stamps Will Issue
Two certificates can hold up a Chicago closing. Both have to be in hand before the city releases transfer tax stamps.
Full Payment Certificate for Water and Sewer
Every transfer in Chicago requires a Full Payment Certificate from the Department of Water Management confirming that water and sewer charges on the property are current. The requirement applies even when the transfer itself is exempt from the tax. The application fee is $50, and it’s waived for exempt transfers when the application is marked accordingly.6City of Chicago. Full Payment Certificates
You’ll submit the property’s legal description along with a signed deed, a title commitment naming buyer and seller, or a signed sales contract. Skip this step and both parties become jointly liable for any outstanding utility charges, penalties, and fees on the account after the sale.
Certificate of Zoning Compliance
Residential buildings with five or fewer dwelling units need a Certificate of Zoning Compliance before the sale can close. The certificate confirms that the property’s actual use matches its zoning designation, which catches problems like a single-family home illegally converted into multiple units.7City of Chicago. Certificate of Zoning Compliance Condominiums, cooperatives, buildings with six or more units, vacant land, and commercial buildings are all excluded from this requirement.
Filing the Declaration and Buying Stamps
All Chicago transfer tax declarations go through MyDec at the Illinois Department of Revenue’s MyTax portal. Paper forms aren’t accepted.8City of Chicago. MyDec – Real Property Transfer Tax You’ll enter the Permanent Index Number (PIN), the legal description from the deed or title commitment, the sale price, and the names and addresses of buyer and seller.9Illinois Department of Revenue. Real Estate Transfer Tax – Individuals, Title Companies and Settlement Agencies MyDec validates the PIN against county assessor data and calculates the tax automatically.
Once the declaration is approved, stamps can be purchased three ways:
- In person at City Hall, 121 N. LaSalle Street, Room 107
- In person at the Department of Finance office, 400 W. Superior Street
- 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. Stamps have to be affixed to the deed before the Cook County Recorder of Deeds will accept it for recording.
What Happens If Payment Is Late
If stamps aren’t purchased on time, the city charges 12 percent annual interest on the unpaid amount. You can email the Department of Finance’s tax policy team to request an abatement of interest and penalties, but the department decides those requests under its own internal ruling. The penalty clock starts immediately, so for-sale-by-owner deals and private transfers, where there’s no title company automatically handling the stamp purchase, are where the risk sits. If you’re closing without a title company, buy the stamps the same day the deed is signed.