Wondering if your closing costs just changed after Chicago’s transfer tax vote? You are not alone. If you are buying or selling soon, clarity on taxes and fees at the closing table matters. In this guide, you will learn what the rejected ballot measure means today, how Chicago-area transfer taxes actually work, and how to model your numbers with confidence. Let’s dive in.
The vote result at a glance
Chicago voters rejected the proposed transfer tax increase often called Bring Chicago Home. Because the measure failed, no change was made to Chicago’s existing transfer tax law. There is no retroactive impact on past sales. If changes come in the future, they would require new legislation or another ballot measure.
Bottom line: you can continue using the same transfer tax assumptions you have been using. Always verify current rates with the City, County, or your title company before you close.
What stays the same for your closing
- Existing city and county transfer tax rules remain in force.
- Title companies and closing attorneys will keep applying the current rates and practices at settlement.
- There is no new form you must complete because of the vote result.
- Any market effects from the failed measure, if they occur, will be indirect rather than tied to a new tax.
How Chicago transfer taxes work
Transfer costs in our area often come from more than one layer. Knowing the pieces helps you avoid surprises at closing.
City, county, and recording fees
- Municipal transfer tax: The City of Chicago levies a transfer tax by ordinance that applies to many sales inside city limits.
- County transfer or recording taxes: Cook County also assesses transfer or recording taxes when deeds are recorded.
- State level: Illinois does not have a single uniform statewide transfer tax that covers every sale in the way some states do. Local and county levies are the main items to check.
- Recording fees: These are separate from transfer taxes. Recording fees are usually modest flat charges for recording the deed and mortgage.
Who collects and when
- The City of Chicago administers the city transfer tax.
- Cook County offices administer county transfer or recording taxes and fees.
- Your title company or closing attorney calculates, collects, and remits all required taxes at closing. Taxes are typically due at recording, so payment is handled with the deed.
What is typically taxable and common exemptions
Most transfer taxes apply to transfers of real property for value. Many jurisdictions offer exemptions, such as certain transfers between spouses, transfers into some trusts, some foreclosures, gifts, or government transfers. Exemptions are specific and usually require documentation or affidavits at closing. If you believe an exemption applies, speak with your attorney or title officer early and gather the paperwork.
Who pays the tax
The purchase contract controls who pays each tax. Local custom can influence negotiations, but the contract is what matters. Title companies follow the contract and enter the taxes on the seller’s or buyer’s side of the settlement statement as directed.
Remember that the taxing authority requires the tax to be paid at recording regardless of how you allocate it between buyer and seller. If your agreement assigns the city tax to the seller and the county tax to the buyer, for example, the title company will collect each accordingly.
Model your numbers with confidence
Here is how to build an accurate estimate for seller net or buyer cash to close.
Inputs to gather
- Sales price.
- Who pays each transfer tax per the contract.
- Current numeric rates for the City of Chicago transfer tax and Cook County transfer or recording taxes, plus recording fees. Verify with official city or county pages or your title company.
- Any exemptions that may apply and the required documents.
- Seller mortgage payoffs and any lien payoffs.
- Prorations for property taxes, HOA dues, or utilities as of the closing date.
- Title insurance premiums, title and settlement fees, attorney fees, and survey if needed.
- Realtor commissions and any seller concessions or buyer credits.
- Property type details that could affect allocation or fees, such as condo or multi-unit.
Core formulas
- Transfer tax amount = Sales price × Applicable tax rate.
- If multiple taxes apply, calculate each separately and then sum them.
- Seller net proceeds = Sales price − Seller closing costs − Mortgage payoffs − Realtor commissions − Seller-paid transfer taxes and fees − Prorations and seller concessions.
- Buyer cash to close = Down payment + Buyer closing costs + Prepaids or escrows − Seller credits.
HYPOTHETICAL example
Assume a sale price of 400,000 and sample placeholder rates for demonstration. Do not use these in a real transaction.
- Municipal transfer tax = 400,000 × X percent
- County transfer tax = 400,000 × Y percent
- Total transfer tax = municipal tax + county tax
- If the seller pays both taxes per the contract, the seller net would be 400,000 minus commission, minus total transfer tax, minus mortgage payoff, minus seller closing costs. A few percentage points can shift net proceeds by thousands of dollars. Always ask your title company for a current, itemized estimate.
Common pitfalls to avoid
- Confusing recording fees with transfer taxes. Recording fees are typically small flat charges. Transfer taxes are percentage based and usually larger.
- Assuming who pays. The contract sets responsibility for each tax.
- Missing exemptions. Exempt transfers require documented proof. Do not assume an exemption will be granted without the right form.
- Using outdated rate tables. City or county ordinances can change. Verify with official sources or your title team within a few days of closing.
Your 7 step checklist
- Ask your agent or title company for a preliminary net sheet or buyer cash to close worksheet based on today’s rates.
- Confirm in writing who pays each transfer tax per the purchase contract.
- Identify any exemptions early and gather required affidavits or supporting documents.
- Request payoff statements for mortgages or liens as soon as you go under contract.
- Verify the City of Chicago and Cook County transfer tax rates and recording fees with official pages or your title company.
- Review title insurance premiums, attorney fees, and any survey costs that apply to your property type.
- Reconfirm numbers within 2 to 3 business days of closing for final accuracy.
Ready for clarity on your sale or purchase
If you want a calm, step by step plan that removes guesswork, our team can coordinate a precise, itemized estimate with your title company and walk you through every line. Whether you are selling a condo downtown, a two flat on the Northwest Side, or buying in the North Shore, you deserve clear numbers and a smooth closing.
If you are considering a move, get a personalized estimate and strategy session today. Unknown Company can prepare a tailored net sheet or cash to close breakdown and align it with your timeline. Get your free home valuation & consultation.
FAQs
Did the rejected transfer tax vote change closing costs in Chicago
- No. The proposal was rejected, so current city and county transfer tax rules remain in effect. Always verify the latest rates with official sources or your title company before closing.
Who typically pays Chicago transfer taxes in a sale
- It depends on the purchase contract. Local custom may influence negotiations, but the contract controls and the title company will collect accordingly at closing.
Are there exemptions from Chicago or Cook County transfer taxes
- Yes. Many jurisdictions offer exemptions such as certain spousal transfers, some trust transfers, gifts, some foreclosures, or government transfers. Each exemption is specific and requires documentation at closing.
Are recording fees the same as transfer taxes in Chicago
- No. Recording fees are separate flat charges to record documents. Transfer taxes are percentage based and usually represent a larger portion of closing costs.
How can I get a precise net proceeds or cash to close number in Chicago
- Ask your agent or a local title company for an itemized preliminary estimate using current city and county rates, your contract allocations, and your exact payoffs and fees.
Could transfer taxes change in the future despite the vote
- Yes. Any future change would require new legislation or another ballot measure. Until then, existing rules remain in force. Verify rates close to your settlement date.
