What are the Transfer Taxes in Chicago and its Suburbs? And who pays them?

UPDATE:  THE TRANSFER TAX FOR CHICAGO IS STILL 10.50 PER 1,000 BUT IS NOW SPLIT BETWEEN BUYER AND SELLER.  7.50 PER 1,000 IS THE BUYERS RESPONSIBILY AND 3.50 PER 1,000 IS THE SELLERS. Nothing says Chicago Real Estate these days like Transfer Taxes. A touchy subject after the City of Chicago decided to increase their transfer tax by 40%. As if things were not hard enough on buyers and sellers with the current market we had to go and add to it. Transfer taxes can be confusing. Like most taxes everybody has their hands out when you buy and sell real estate. We have to pay the state, the county and more times than not the town/village/city you buy or sell in. The price of these taxes greatly vary depending on where you buy or sell. We’ll take a look at who pays and how much in various areas I’m familiar with but first things first.

Living in Illinois we pay a state transfer tax of $1.00/$1,000 spent. So for every $100,000 you buy you must pay $100. In this case the transfer tax can be paid by either party but it is customary for the seller to do so. So keep that in mind as we dive into the details of certain counties and eventually towns/villages/cities around Chicago. Some are split between buyer and seller while some are strictly the responsibility one party. Shall we?

Here is a breakdown of Transfer Taxes by County:

This should be easy. Every county in the Greater Chicago Area (Cook, DuPage, Will, Kane, Lake, Kendall, DeKalb, McHenry, Winnebago) have transfer taxes of $0.50/$1,000 bought/sold. Meaning for every $100,000 is a tax of $50. In Cook County the seller pays. In every other county mentioned it is paid by either party but customary for the seller to do so. Now lets look at a few towns/villages/cities in and around Chicago.

Here is a breakdown of Transfer Taxes by Town/Village/City:

• Aurora-$3/$1,000 meaning $300 for every $100,000. Seller pays.
• Berwyn-$10/$1,000 meaning $1000 for every $100,000. Seller pays. OUCH! Same in Cicero.
• Bolingbrook-$7.50/$1,000 meaning $750 for every $100,000. Split between parties.
• Chicago-I’ve already written about this. $7.50/$100,000 for now increasing to $10.50/$100,000 for anything closing after April 1.
• Elmhurst-$1.50/$1,000 meaning $150 for every $100,000. Seller pays.
• Glen Ellyn-$3/$1,000 meaning $300 for every $100,000. Seller pays.
• Naperville-$3/$1,000 meaning $300 for every $100,000. Buyer pays.
• Oak Park-$8/$1,000 meaning $800 for every $100,000. Seller pays.
• River Forest-$1/$1,000 meaning $100 for every $100,000. Seller pays.
• Wheaton-$2.50/$1,000 meaning $250 for every $100,000. Buyer pays.
• Woodridge-$2.50/$1,000 meaning $250 for every $100,000. Seller pays.

That is the short list or communities that I deal in. Note that this includes the City of Chicago and anything directly West of the City including DuPage and parts of Will Counties. If your town/village was not mentioned it does not mean you don’t have one. I have a complete list here. How would you like to be selling in Oak Park and moving into the City of Chicago? Double hit. You sell for $500,000 and buy $700,000 your looking at $11,350 in city transfer taxes. Add in the $1.50 for the County and State for selling and that climbs to $12,100.

The whole point of this is to make you aware of some of the costs involved when you are going to buy or sell. It’s also to get you active in your community when it comes to costs of buying/selling real estate. Before these taxes can go up there is a vote and before that vote is your opportunity to let your representative know how you feel. Most towns/villages/cities have a mayor. Good place to start. From there you can contact council members and in Chicago your Alderman.