Closing costs by state
Closing costs in Illinois
Closing costs in Illinois run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $10,055. Illinois charges a state transfer tax of $0.50 per $500 of value (state real estate transfer tax, 35 ILCS 200/31-10), about 0.1% of the price, and the seller customarily pays it. Counties may add $0.25 per $500 (Cook County does). Chicago adds $5.25 per $500 (1.05%): the buyer pays $3.75 per $500 and the seller $1.50 per $500. Many other home-rule municipalities levy their own transfer taxes.
Last verified ·Sources:atgf.com·chicago.gov
The rules
What Illinois does differently
- State transfer tax
- $0.50 per $500 of value (state real estate transfer tax, 35 ILCS 200/31-10) (about 0.1% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- Counties may add $0.25 per $500 (Cook County does). Chicago adds $5.25 per $500 (1.05%): the buyer pays $3.75 per $500 and the seller $1.50 per $500. Many other home-rule municipalities levy their own transfer taxes.
- Attorney at closing
- In Illinois closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Owner’s title policy
- The seller customarily pays for the owner’s title insurance policy in Illinois; the buyer pays for the lender’s policy.
- Notes
- $400 state tax on a $400,000 sale, plus $200 county in Cook County and $4,200 in Chicago. The seller pays the state and county tax by custom. Attorneys represent both sides in the Chicago area; title companies often close downstate.
- atgf.com — “50 cents for each $500 of value or fraction of $500 (35 ILCS 200/31-10); county $0.25 for each $500”
- chicago.gov — “$5.25 per $500.00 of the transfer price ... The Buyer is responsible for $3.75 and the Seller is responsible for $1.50.”
Worked example
A $400,000 home in Illinois, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow Illinois’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Total (2.514% of price) | $10,055 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.1%) | $400 |
| Total | $25,400 |
Questions
What people ask about Illinois
- Who pays the transfer tax in Illinois?
- Illinois charges a state transfer tax of $0.50 per $500 of value (state real estate transfer tax, 35 ILCS 200/31-10), about 0.1% of the price, and the seller customarily pays it. Counties may add $0.25 per $500 (Cook County does). Chicago adds $5.25 per $500 (1.05%): the buyer pays $3.75 per $500 and the seller $1.50 per $500. Many other home-rule municipalities levy their own transfer taxes.
- Do you need an attorney to close on a house in Illinois?
- In Illinois closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Who pays for the owner’s title policy in Illinois?
- The seller customarily pays for the owner’s title insurance policy in Illinois; the buyer pays for the lender’s policy.
- How much are seller closing costs in Illinois?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $25,400 for the seller, including $400 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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