Chicago real estate transfers are subject to three layers of tax. The Illinois State transfer tax is $0.50 per $500 (0.10%), paid by the seller. Cook County adds $0.25 per $500 (0.05%), also paid by the seller. The Chicago city transfer tax (sometimes called the CTA tax) totals $5.25 per $500 (1.05%): the seller pays $1.50 per $500 (0.30%) and the buyer pays $3.75 per $500 (0.75%). All taxes are based on the full purchase price.
In Chicago, transfer taxes are split between buyer and seller. The seller customarily pays the Illinois state tax, Cook County tax, and the seller's portion of the Chicago city tax. The buyer pays the buyer's portion of the Chicago city tax. These assignments are standard practice but can be negotiated in the purchase contract. Buyers and sellers should confirm responsibilities with their real estate attorney or title company.
Certain Chicago real estate transactions may qualify for exemptions from one or more of the transfer taxes. Common exemptions include transfers to qualifying governmental entities, certain nonprofit transfers, and transactions involving low-income housing. Note that Chicago has also considered additional CTA surcharges on high-value properties. Consult a Chicago real estate attorney to determine whether your transaction qualifies for any exemptions or is subject to any surcharges.