A Chicago closing stacks three separate transfer taxes — state, Cook County, and the City of Chicago — for a combined $6.00 per $500. Outside Chicago and Cook County, only the state's $0.50 per $500 applies.
State, county, and city transfer tax — excludes title insurance, escrow, lender fees, and recording fees.
| State tax (800 × $0.50) | $400.00 |
| Cook County tax (800 × $0.25) | $200.00 |
| City of Chicago tax (800 × $5.25) | $4,200.00 |
| Total | $4,800.00 |
This is a tax-module example, not a complete settlement statement — title, escrow, lender, and recording charges are not included.
Illinois's state transfer tax is a modest $0.50 per $500 of value statewide. But a Chicago closing stacks two more layers on top: Cook County's $0.25 per $500, and the City of Chicago's own $5.25 per $500 — bringing the combined rate to $6.00 per $500 (1.2% effective), more than ten times the state rate alone. Outside Chicago and Cook County, only the state tax applies.
Closing costs are the fees and charges required to finalize a real estate purchase, separate from your down payment and the home's purchase price. Beyond the Illinois transfer tax and recording fee calculated above, a typical closing includes a handful of other charges: a loan origination fee charged by your lender, an appraisal fee to confirm the home's value, a home inspection fee, a title search and title insurance premium (a lender's policy is required by most lenders, and an owner's policy is optional but recommended), an escrow or settlement agent fee, and prepaid items such as homeowners insurance and the property tax and mortgage interest your lender collects upfront into escrow. Which of these apply, and how much each one costs, depends on your lender, your loan program, and the title or escrow company handling your closing — this calculator covers only the government-charged transfer tax and recording fee shown above, not the full closing cost picture.
Several factors shape how much you'll actually pay at closing on a Illinois property, beyond the transfer tax and recording fee shown above. Loan type matters: FHA loans add an upfront mortgage insurance premium, VA loans add a funding fee (waived for some veterans and service members), and USDA loans add a guarantee fee, while conventional loans typically don't carry a comparable upfront charge. Property type matters too — condos and homes in planned communities often require an extra fee for HOA document review or a resale certificate, and multi-unit or investment properties can carry higher title insurance premiums than a standard single-family purchase. County and municipality matter as well: recording fees, and in some states local transfer taxes, can vary from county to county, so the figures on this page reflect the Illinois statutory default — always confirm with the specific county recorder's or clerk's office where you're closing. Finally, purchase price and loan amount drive costs that scale with value, including title insurance premiums, percentage-based origination fees, and the transfer tax calculated above.
Regardless of which state you're buying in, most closings follow the same basic structure. A few days before closing, federal law requires your lender to send a Closing Disclosure — a standardized five-page form that itemizes every fee you'll pay, required under the TILA-RESPA Integrated Disclosure rule. Compare it line by line against your most recent Loan Estimate so you can catch any unexpected changes before signing day. On closing day, you (or, in some cases, your attorney or agent under a power of attorney) sign the closing documents, wire or bring a cashier's check for your remaining cash to close, and the title or escrow company disburses funds to the seller and other parties, records the deed — and typically the mortgage — with the county, and issues your title insurance policy. The recording fee shown in the calculator above is exactly the government charge for that final step: recording the deed in Illinois's public land records.