Buying a condo in downtown Chicago means paying the City of Chicago's portion of the real estate transfer tax: $3.75 per $500 of the price, or 0.75%. The seller customarily pays the Illinois, Cook County, and CTA portions, about 0.45% combined. Together, the four pieces total $6.00 per $500, or 1.2% of the price. Your contract and your attorney confirm the final allocation before closing.
The Four Pieces of Chicago's Transfer Tax
Three governments tax a property transfer in Chicago. Here's what each charges and who customarily pays:
- City of Chicago: $3.75 per $500 of the price (0.75%). Paid by the buyer.
- CTA portion of the Chicago tax: $1.50 per $500 (0.30%). Paid by the seller.
- State of Illinois: $0.50 per $500 (0.10%). Customarily paid by the seller.
- Cook County: $0.25 per $500 (0.05%). Customarily paid by the seller.
These rates are current as of mid-2026, based on Chicago Title's transfer tax schedule. Rates can change, so your attorney and title company confirm them for your closing.
Chicago is one of the few places in Illinois where the buyer pays the largest share. In most Illinois communities, the seller pays the transfer tax. If you're moving from the suburbs or another state, budget for it.
How to Estimate Your Transfer Tax
The math is simple: divide the purchase price by 500, then multiply by the rate.
- Your share as a buyer: purchase price ÷ 500 × $3.75
- The seller's share: purchase price ÷ 500 × $2.25
Deeded parking counts. Transfer tax applies to the full price, so if you're buying a parking space with the condo, include it in the calculation.
What Else Is on Your Closing Statement
Transfer tax is only one line. As a buyer, you'll also typically pay:
- Lender costs if you finance, including the appraisal and the lender's title policy
- Recording fees for the deed and mortgage with Cook County
- Your attorney's fee. In Chicago, buyers and sellers each typically hire a real estate attorney.
- Prepaid items such as homeowner's insurance and property tax escrows
Some items work in your favor. Because Cook County property taxes are billed a year behind, the seller usually gives you a property tax credit at closing. In Chicago, the seller also customarily pays for your owner's title insurance policy.
Ask your lender and title company for an itemized estimate as soon as you have a target price, and review your Closing Disclosure line by line before closing.
What Condo Buyers Should Know Before Writing an Offer
- Make the allocation explicit. Chicago custom is clear, but your contract governs. Confirm who pays each piece in writing.
- Ask about new construction. Developers sometimes use their own contracts with different cost allocations. Have your attorney review them early.
- Check exemptions with your attorney. Some transfers, such as certain related-party or government transfers, qualify for exemptions. Most condo resales don't.
- Look beyond the tax. The building's finances often matter more than any closing cost. Here's how condo assessments and reserves affect your purchase.
If You're Selling: Your Side of the Transfer Tax
Sellers pay about 0.45% of the price in transfer taxes, plus the owner's title policy, the property tax credit, condo document fees, and commission. Here's a full breakdown of how much you'll net selling a downtown Chicago condo.
Every downtown sale I handle follows my 3P-to-SOLD™ strategy: Prepared. Priced. Protected.
- Prepared: a unit-specific plan for what to fix, what to skip, and how to present your condo.
- Priced: pricing against the units buyers will compare yours to, with your estimated net proceeds in view from the start.
- Protected: negotiation of price, credits, and closing costs, and a backup offer whenever possible.
Frequently Asked Questions
Who pays the transfer tax when you buy a condo in Chicago?
The buyer pays the City of Chicago portion, $3.75 per $500 of the price, or 0.75%. The seller customarily pays the state, Cook County, and CTA portions, about 0.45% combined.
What is the total real estate transfer tax in Chicago?
All four pieces together total $6.00 per $500 of the price, or 1.2%. The buyer and seller split it, with the buyer paying 0.75% and the seller about 0.45%.
Does the transfer tax apply to deeded parking?
Yes. Transfer tax is calculated on the full purchase price, including any parking space bought with the condo.
When is the transfer tax paid?
At closing. The title company collects it and pays it when the deed is recorded.
Can the buyer and seller change who pays the transfer tax?
The contract can allocate costs differently, but Chicago custom is well established. Any change should be written into the contract and reviewed by your attorney.
Buying or Selling a Downtown Chicago Condo?
If you own a downtown condo and are thinking about selling, request your condo selling strategy: what your condo could sell for, what's worth fixing first, and how it compares with others in your building. If you're buying, contact me for help comparing buildings and planning your offer.
About Larissa Brodsky
Larissa Brodsky is a Chicago real estate broker affiliated with Compass and has been in Chicago real estate since 2008. She specializes in downtown Chicago condominiums, including Lakeshore East, Streeterville, River North, the Gold Coast, and the South and West Loop. A Certified International Property Specialist with a Master's in Computer Science from DePaul, she brings a data-driven approach to pricing, preparation, negotiation, and closing.
This article provides general educational information. Tax rates and closing practices can change. Confirm current rates and your contract's allocation with your real estate attorney and title company.
