A Chicago property sells for $275,000. Combining only the Chicago buyer city transfer tax ($3.75 per $500), the Chicago seller city transfer tax ($1.50 per $500), and the Illinois state transfer tax ($0.50 per $500) — and excluding the Cook County transfer tax — what is the total transfer tax due?
Correct Answer
D) $3,162.50
The correct answer is D: $3,162.50. Step 1 — determine the number of $500 units: $275,000 ÷ $500 = 550 units exactly (no rounding needed). Step 2 — combine the three applicable rates: Chicago buyer city tax ($3.75) + Chicago seller city tax ($1.50) + Illinois state tax ($0.50) = $5.75 per $500 unit. Step 3 — calculate total: 550 × $5.75 = $3,162.50. The Cook County transfer tax is excluded per the question's instructions.
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