If you’re selling your Skokie home, you might have questions about transfer taxes. How do they work? 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 have a large financial impact on the overall cost of your transaction and your bottom line. This guide will explain how transfer taxes work in Skokie, 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 fees 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 of 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, as different states, counties, and cities establish their own rates and regulations. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects. Sellers (also referred to as the “grantor”) are required to pay for transfer taxes in Skokie. These are sometimes referred to as a “documentary stamp tax”, and while the seller is liable for them, both the buyer (or “grantee”) and the seller are required to sign off on the city’s real estate transfer tax form.What are transfer taxes?
Who pays for transfer taxes?
