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Chicago · Municipal Code §§3-33-030, 3-33-040Chicago transfer tax: $3.75 per $500 for the buyer, $1.50 for the seller

Chicago taxes the privilege of transferring title to – or a beneficial interest in – real property in the city. The city portion is $3.75 per $500 of the price, and the primary obligation to pay it is on the buyer (Municipal Code §3-33-030(A), (C)). A supplemental CTA portion of $1.50 per $500, in force since April 1, 2008, is paid by the seller; if it goes unpaid, buyer and seller become jointly liable and the property is subject to a lien (§3-33-030(F)). The tax is due on the earlier of delivery or recording of the deed and is paid with tax stamps, which are not issued until the city certifies that water and sewer charges on the parcel are paid in full (§§3-33-030(B), 3-33-040). On a $400,000 home the buyer pays $3,000 and the seller $1,200, before state and Cook County taxes.

Rate, who pays and an example

  1. City portion

    $3.75 per $500 of the price, paid by the buyer (§3-33-030(A), (C)).

  2. CTA portion

    $1.50 per $500, paid by the seller; joint liability and a lien if unpaid (§3-33-030(F)).

  3. When due

    Earlier of delivery or recording of the deed (§3-33-030(B)).

  4. Stamps and water certificate

    Paid by stamps, issued only after a full-payment certificate for water and sewer (§3-33-040).

  5. Example – $400,000

    Buyer $3,000 (city); seller $1,200 (CTA); total $4,200, plus state and county taxes.

Good to know

  • Order the water certification early – without it the stamps, and the closing, wait.

What the TC checks

  • The tax line on the closing statement against the statutory rate.
  • Who pays it – the statute, the contract or local custom.
  • The value or consideration stated on the deed or declaration.

Questions about this tax

Who pays Chicago transfer tax?

The buyer pays the city portion of $3.75 per $500 and the seller pays the CTA portion of $1.50 per $500 (Municipal Code §3-33-030).

How much is Chicago transfer tax on a $400,000 home?

$3,000 for the buyer and $1,200 for the seller – $4,200 in city taxes, before state and Cook County taxes.

Why do I need a water certificate to close in Chicago?

Transfer tax stamps are issued only after the city certifies the parcel's water and sewer charges are paid in full (§3-33-040(C)).

Related guides

Add the transfer tax check to the closing statement review as a task with an owner and due date in ClosingCode.

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Source: Municipal Code of Chicago §§3-33-030 and 3-33-040 (codelibrary.amlegal.com, read October 25, 2026).

General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.