Planning a Lincoln Park move and wondering how Chicago’s transfer tax will affect your bottom line? You are not alone. Transfer taxes can shift thousands of dollars between buyer and seller, and the rules span city, county, and state levels. This guide breaks down who typically pays, how to estimate the cost, common exemptions, and where to verify current rates. Let’s dive in.
Transfer taxes in Lincoln Park
Lincoln Park sits inside the City of Chicago and Cook County, so three authorities may apply: the City of Chicago, the State of Illinois, and Cook County recording offices.
- City of Chicago: The city levies a Real Property Transfer Tax on conveyances within city limits. For current rates, exemptions, and filing rules, check the City’s Department of Finance pages on the City of Chicago official site.
- State of Illinois: The state imposes its own transfer tax and sets forms and payment rules. See the Illinois Department of Revenue for current statutory guidance.
- Cook County: Recording fees and county procedures apply when documents are recorded. Review fee schedules and instructions on the Cook County Clerk site.
Rates and rules can change. Always verify figures on these official pages before you run numbers for your sale or purchase.
Who usually pays in Chicago
Payment is negotiable and should be stated in the contract. That said, local custom in many Chicago transactions is:
- Sellers often pay the City of Chicago transfer tax. Many sellers also pay the Illinois state transfer tax.
- Buyers typically pay lender-related costs, mortgage recording fees, and certain document recording charges.
Customs can vary by property type and market conditions. The contract controls. If you are listing in Lincoln Park, ask for a custom seller net sheet. If you are buying, request a buyer cash-to-close estimate that shows transfer and recording costs. You can get started with our Seller resources.
How to calculate your taxes
Transfer taxes are usually quoted either as a dollar amount per $500 of price or as a percentage of the sale price.
- Dollars-per-$500 method: Tax = (Sale price ÷ 500) × (dollars per $500)
- Percentage method: Tax = Sale price × (percentage rate)
To convert dollars-per-$500 to a percentage for quick math: percentage = (dollars per $500 × 2) ÷ 100. For example, $1 per $500 equals 0.2%.
Quick plug-in worksheet
Use this plug-in approach with rates from the official pages above:
- Sale price: $________
- City of Chicago tax: (Price ÷ 500) × [City $ per $500] = $________
- Illinois transfer tax: (Price ÷ 500) × [State $ per $500] = $________
- Cook County recording/other transfer-related fees: $________
- Total transfer-related taxes/fees: $________
How this affects a seller’s net and a buyer’s cash-to-close:
- Seller net (before other costs) = Sale price − transfer taxes − commissions − prorations/payoffs − title charges.
- Buyer cash-to-close = Down payment + buyer closing costs + buyer’s share of transfer/recording fees (if any) + prepaids/reserves.
Illustrative Lincoln Park examples
Below are simplified examples to show mechanics only. Verify current rates on the City, County, and State pages before you rely on any calculation.
- Scenario A: Seller pays city and state taxes. On a $700,000 sale, if the combined city and state transfer rate were 1% for illustration, the seller’s transfer taxes would be $7,000. That reduces seller net by $7,000. The buyer pays their loan and recording costs.
- Scenario B: Split allocation. If a $700,000 contract assigns the city tax to the buyer and the state tax to the seller, the buyer’s cash-to-close increases by the city amount and the seller’s net decreases by the state amount. The dollar impact depends on the rates you confirm on official sites.
Even small percentages add up on Lincoln Park prices. A 0.5% assumption on $1,000,000 equals $5,000, which can change how you structure offers or credits.
Exemptions you should know
Some transfers may be exempt, but each authority has its own rules and documentation.
- Common exemption categories include transfers between spouses or incident to divorce, transfers to governmental bodies, certain transfers to qualifying nonprofits, and transfers under court order. Details and proof requirements matter.
- For the city’s current exemption list and instructions, review the Department of Finance pages on the City of Chicago site.
- For state rules and forms, consult the Illinois Department of Revenue.
- Recording practices and affidavits are addressed by the Cook County Clerk.
If you think your transfer might be exempt, verify requirements on the official sites and coordinate early with your attorney and title company.
Negotiating who pays
Because allocation is negotiable, put it in writing with precise contract language. Many Chicago contracts state that the seller pays the municipal and state transfer taxes, while the buyer pays lender, recording, and mortgage-related fees. Your attorney can tailor language for your deal.
For higher-priced Lincoln Park listings, ask for a preliminary seller net sheet that itemizes transfer taxes before you set list price or accept an offer. Buyers should request a cash-to-close estimate that includes any buyer-assigned transfer taxes.
Seller and buyer checklists
Here is a simple list to stay organized.
Sellers
- Verify current city and state transfer tax rates on official sites.
- Ask for a detailed net sheet showing transfer taxes, commissions, title costs, and loan payoffs.
- Decide if you will propose that buyers pay any portion of transfer taxes in your counterterms.
- Confirm any possible exemptions and collect required affidavits.
Buyers
- Confirm how transfer taxes are allocated in your offer.
- Get a cash-to-close estimate that includes any buyer-assigned transfer or recording fees.
- Review lender and recording fees with your loan estimate.
- Verify current rates on the City, County, and State sites before you finalize numbers.
Get local help
You do not need to navigate this alone. Our team handles North Side moves every day and can prepare a clear seller net sheet or buyer cash-to-close estimate for your Lincoln Park plan. Explore more in our Lincoln Park neighborhood guide, or visit our Seller resources. When you are ready, schedule a concierge consultation with Cadence Realty.
FAQs
Who pays Chicago transfer tax on Lincoln Park sales?
- It is negotiable, but many Chicago contracts have the seller pay the city and state transfer taxes; confirm your allocation in the contract.
How do I estimate transfer taxes on a $700,000 condo?
- Pull current rates from city and state sites, then compute each tax using (Price ÷ 500) × rate or Price × percentage; add recording fees from the county.
Are family transfers exempt from Chicago transfer taxes?
- Some transfers between spouses or under divorce orders may qualify, but exemptions depend on the authority and required documentation; verify on official pages.
Can a buyer pay the transfer tax instead of the seller?
- Yes. Allocation is a negotiable term; if the buyer agrees to pay, that increases the buyer’s cash-to-close by that amount.
How do transfer taxes affect seller net proceeds?
- They reduce proceeds dollar for dollar. Include them in a net sheet when setting list price or evaluating offers.
