Key Takeaways
- Illinois transfer tax is $0.50 per $500 (or $1 per $1,000) of consideration
- Many Illinois counties and municipalities have additional transfer taxes
- Property taxes are paid in arrears in Illinois (paying for the prior year)
- Transfer declarations are required for recording deeds
- Exemptions exist for transfers between family members and certain other situations
Last updated: January 2026
Taxes & Transfer Requirements
Understanding Illinois tax requirements is essential for closings and the exam.
Illinois Transfer Tax
State Rate
| Rate | Calculation |
|---|---|
| $0.50 per $500 | Or $1 per $1,000 |
| Who pays | Typically seller |
| Exemptions | Various available |
Calculation Example
| Sale Price | State Tax |
|---|---|
| $200,000 | $200 |
| $350,000 | $350 |
| $500,000 | $500 |
County/Municipal Taxes
| Location | Additional Tax |
|---|---|
| Cook County | $0.50 per $500 |
| Chicago | $3.75 per $500 (buyer) |
| Other municipalities | Varies |
Note: Chicago's transfer tax is paid by the BUYER.
Property Taxes
Tax Cycle
| Concept | Illinois Rule |
|---|---|
| Paid in arrears | For prior year |
| Due dates | Two installments |
| Lien date | January 1 |
| Assessment | Every 3-4 years |
Proration at Closing
| Method | Details |
|---|---|
| Using prior year | Most common |
| Credit to buyer | Seller pays share |
| Calendar/fiscal | Pro-rate to closing |
Exemptions
| Exemption | Amount |
|---|---|
| Homeowner | Varies by county |
| Senior citizen | Additional exemption |
| Disabled person | Additional exemption |
| Disabled veteran | Additional exemption |
Transfer Declarations
Required for Recording
| Document | Purpose |
|---|---|
| PTAX-203 | Transfer declaration |
| Required | To record deed |
| Information | Sale price, parties |
Exemptions from Declaration
| Exempt Transfer | Notes |
|---|---|
| Court-ordered | Divorce, foreclosure |
| Government | To/from government |
| No consideration | Gifts (partial exempt) |
| Between relatives | Some exemptions |
Recording Requirements
To Record Deed
| Requirement | Details |
|---|---|
| Transfer declaration | PTAX-203 |
| Documentary stamps | Tax paid |
| Proper form | Correct format |
| Recording fee | County fee |
RETT (Real Estate Transfer Tax)
| When | Rate |
|---|---|
| State | $0.50/$500 |
| County | Varies |
| Municipality | If applicable |
| Total | Combined rates |
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Test Your Knowledge
What is the Illinois state transfer tax rate?
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Test Your Knowledge
In Illinois, property taxes are paid:
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