If you’re selling your Wilmette home, you might have questions about transfer taxes. How do they work in Illinois? How much are they? Who pays for them? Don’t worry. Transfer taxes aren’t complicated, and HomeLight is here to help. Transfer taxes are fees levied by local or state authorities when real property (like a home) changes ownership. Transfer tax rates can differ significantly based on location and can greatly impact the overall cost of your transaction and your bottom line. This guide will explain how transfer taxes work in Wilmette, including their cost, who is liable for them, and any possible exemptions. Additionally, we will explain how transfer taxes can affect your capital gains burden and why working with a real estate agent is a great idea. 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 verifies your legal ownership, is officially transferred to a new owner. The amount owed in transfer taxes can vary significantly based on the property’s location. Different states, counties, and cities usually have their own rates and regulations for these taxes in place. Transfer taxes primarily serve as a means for local and state governments to generate revenue, as they fund various public services and infrastructure projects. Though the seller generally pays for transfer taxes in Illinois, this is not true in Wilmette. Since 1988, when the Wilmette Village Board adopted its transfer tax ordinance, the property buyer has been responsible for paying for transfer taxes in Wilmette.What are transfer taxes?
Who pays for transfer taxes?
