IL · #6 by population

Buying a home in Illinois

Costs and rules that are specific to Illinois. Main city: Chicago.

In short

Illinois taxes property sales through its real Estate Transfer Tax, does not require an attorney at closing and requires a seller disclosure form. It forecloses through the courts and is not a community property state.

Calculate for Illinois

If you buy

Illinois state transfer tax

Real Estate Transfer Tax (35 ILCS 200/31-10): $0.50 per $500 of value or fraction of $500. Change the price: the amount is recalculated instantly.

Price$280,700
State transfer tax$281
Share of the price0.1% of the price
Who paysShared by buyer and seller

Default price: the Illinois median value of owner-occupied homes, $280,700 (Census ACS 2024). Rule: Divide the value by $500, round up to the next whole unit, multiply by $0.50. If the deed is subject to a mortgage, the outstanding mortgage balance is left out of the base. Who pays: Per the Cook County Clerk table the seller is liable for the state and county taxes. In Chicago the buyer generally pays the $3.75 city portion and the seller the $1.50 CTA portion. Contracts can allocate differently. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Illinois transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Illinois state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Illinois in short

Is there a real estate transfer tax in Illinois?

Illinois taxes real estate transfers at $0.50 per $500 of value, Cook County adds $0.25 per $500, and the City of Chicago adds $5.25 per $500, for a Chicago total of $6.00 per $500 (1.2% of the price). The seller is named for the state and county taxes.

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How much is the state transfer tax on a $280,700 home in Illinois?

On $280,700, the median value of owner-occupied homes in Illinois (Census ACS 2024), the state real estate transfer tax comes to $281 ($0.50 per $500 of value or fraction of $500). County and city taxes are not included.

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What closing costs does Illinois law set?

Illinois has no official typical closing-cost total. The Cook County Clerk charges $107 to record a deed or mortgage, and Chicago transfer taxes total $6.00 per $500 of price (state $0.50, county $0.25, city $5.25).

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How is property tax calculated in Illinois?

In Cook County, Illinois, a home is assessed at 10% of market value, multiplied by the state equalization factor (3.0300 for tax year 2025), and the General Homeowner Exemption subtracts $10,000.

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What is the deadline to appeal a property tax assessment in Illinois?

In Cook County, Illinois, appeal your assessment to the Board of Review during your township's filing window, and if the result disappoints you, appeal to the Property Tax Appeal Board within 30 days of the notice (35 ILCS 200/16-160). The PTAB reviews assessments only, not the tax bill or rate.

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Do you need a real estate attorney to close in Illinois?

No Illinois statute read requires a buyer or seller to hire an attorney to close a home sale. A title company or registered agent may handle the escrow and closing if it issues closing protection letters (215 ILCS 155/16.1).

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What must a home seller disclose in Illinois?

An Illinois seller of one to four units, a condo or a co-op must complete the 24-item disclosure report and deliver it before the contract is signed (765 ILCS 77). If it arrives after signing, the buyer may cancel within 5 business days and get the earnest money back.

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How does foreclosure work in Illinois?

Illinois foreclosures go through a court: a homeowner can reinstate within 90 days of being served, and the redemption period for a residential mortgage ends on the later of 7 months after service or 3 months after the judgment. The sale must then be confirmed by the judge.

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What first-time home buyer programs does Illinois offer?

In Illinois, the Illinois Housing Development Authority (IHDA) offers four down payment assistance programs: Access Home (6% of the price, up to $15,000), Access Deferred (5%, up to $7,500), Access Repayable (10%, up to $10,000) and Access Forgivable (4%, up to $6,000).

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How much tax when you sell a home in Illinois?

The federal rule is the same in Illinois as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Illinois income tax on the gain is not computed here.

Capital gains on a home sale

Illinois guides

Chicago

Buying a home in Chicago, Illinois

Professionals in Illinois

All states · Federal guides