If you’re preparing to sell a home in Cook County, you’ll likely encounter a line item at closing called the transfer tax. This is a type of real estate transfer tax — essentially a government fee for transferring property from one party to another. Transfer taxes are commonly charged at the state, county, and local levels, and the total owed can vary depending on where your property is located. In this guide, we’ll walk through how transfer taxes work in Cook County and what you can expect to pay. We’ll also explain the different types of transfer taxes, who is responsible for them, and whether you qualify for any exemptions that could reduce your costs. Real estate transfer taxes are government-imposed fees that apply when property ownership changes hands. According to the Federal Trade Commission, this tax is assessed when the title — the legal documentation of property ownership — is officially transferred from the seller to the buyer. These taxes are determined based on the property’s location and may be charged by the state, county, or city. The amount owed can vary widely depending on local laws. Like other real estate-related taxes, transfer taxes help generate revenue for public services such as schools, infrastructure, and municipal operations. The responsibility of transfer taxes varies depending on the municipality. In Illinois, it usually falls to the seller, but not always. In Cook County, sellers are responsible for any transfer taxes.What are transfer taxes?
Who pays for transfer taxes?
