If you are selling your Kane County home, you will need to know how transfer taxes work. While they aren’t complicated, they differ based on location and can impact your bottom line. This guide will explain how transfer taxes work, who pays for them, what they are, and any exemptions you may qualify for. Real estate transfer taxes are charged by state or local governments when property ownership is transferred from one individual to another. According to the Federal Trade Commission, these taxes are due when the title to a property, essentially the document that confirms your legal ownership, is officially passed to a new owner. The amount owed in transfer taxes can vary widely based on the property’s location. Different states, counties, and cities usually have their own rates and regulations for these taxes. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects. In Illinois and Kane County, the seller is typically responsible for paying transfer taxes, which are calculated based on the property’s sale price. However, it’s not uncommon for negotiations between the buyer and seller to lead to a different arrangement, where the buyer might agree to take on this cost. There is no standard in Illinois establishing which party is responsible for the tax, only that it gets paid. As such, it’s important for both parties involved in the transaction to review their contract carefully and consult with a real estate professional to clearly understand who is responsible for these taxes before finalizing the sale.What are transfer taxes?
Who pays for transfer taxes?
