Last updated: March 2026
Typical closing costs
$5,000–$13,000
Median home price
$290,000
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Illinois charges a state transfer tax of $1.00 per $1,000 of purchase price (seller). Cook County adds $0.50 per $1,000 (seller). The City of Chicago imposes a separate transfer tax: $3.00/$1,000 on the seller and $7.50/$1,000 on the buyer — making Chicago one of the highest buyer transfer-tax municipalities in the country. Illinois technically does not require attorneys, but attorney involvement is standard practice throughout the state, effectively making it a de facto attorney-required market. Property taxes in Cook County average 1.89%–2.07%, and because they're paid in arrears, the seller credits the buyer at closing for the current year's accrued taxes.
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Before you get to the Closing Disclosure, your Loan Estimate is your first chance to catch overcharges and compare lenders.
If you're buying in Chicago, your Loan Estimate should include the $7.50/$1,000 city buyer transfer tax on Section E. On a $400,000 Chicago purchase, that's a $3,000 line item. If a lender's LE omits this or shows the wrong amount, it will surface as a surprise on your Closing Disclosure. Verify it's correctly included before comparing LEs.
Illinois property taxes are paid in arrears, and at closing the seller credits you for the current year's accrued taxes. Your LE won't show this credit — it appears on the Closing Disclosure. But it's a meaningful cash inflow (often $3,000–$5,000 in Cook County). When planning your cash to close, factor this credit in even though your LE doesn't reflect it.
Attorney fees won't appear on your Illinois Loan Estimate but are essentially mandatory — budget $500–$1,500. Engage your attorney before the contract is signed; IL purchase contracts include a standard 5-business-day attorney review period. The attorney negotiates the contract, not just the closing.
Illinois title insurance uses flat-rate schedules that vary modestly between companies. Chicago-area lenders typically use major title insurers charging $2,100–$2,300 for a $290,000 owner's policy. If your LE shows a title premium well above this range, ask for an explanation or request to use a different title company.
A plat of survey may be required by your lender and will appear on your IL Loan Estimate if so. Budget $400–$700 if a new survey is needed. For resale single-family homes, ask whether the seller's existing survey with an affidavit will satisfy the lender's requirement — this can eliminate the survey fee entirely.
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Check my Loan Estimate →Typical ranges for a home purchase in Illinois. Exact amounts depend on purchase price, county, and lender.
| Fee |
|---|
| State transfer taxSeller · No — $1.00/$1,000 statewide |
| Cook County transfer tax (Cook County only)Seller · No — $0.50/$1,000 |
| City of Chicago transfer tax — seller portion (Chicago only)Seller · No — $3.00/$1,000 |
| City of Chicago transfer tax — buyer portion (Chicago only)Buyer · No — $7.50/$1,000 |
| Property tax proration credit (seller to buyer)Seller credits buyer · Negotiable — standard is 105% of prior year's tax |
| Owner's title insuranceBuyer · Minimal — file-and-use rates |
| Closing / settlement feeBuyer · Slightly — compare title companies |
| Attorney feeBuyer and Seller each · Slightly — flat fee, shop attorneys |
| Plat of survey (if required)Seller (by custom) · Slightly — lender often requires |
| Lender origination feeBuyer · Yes — most negotiable item at closing |
Chicago's buyer-paid transfer tax ($7.50/$1,000) is the largest variable for Chicago-area buyers and is non-negotiable. Property tax proration and lender origination fees are the most impactful negotiable items on Illinois Closing Disclosures.
Closing-cost benchmarks from 65,129 verified Illinois closing disclosures — typical lender median is $6,045.
Many of the fees listed above also appear on your Loan Estimate — the document your lender must provide within 3 business days of your mortgage application. Comparing Loan Estimates from multiple lenders is the single best way to reduce closing costs. Check if your Loan Estimate fees are competitive →
Origination Fee
Negotiable · Section A
Processing Fee
Negotiable · Section A
Underwriting Fee
Negotiable · Section A
Title Insurance
Negotiable · Section C
Appraisal Fee
Non-negotiable · Section B
Recording Fee
Non-negotiable · Section E
Transfer Tax
Non-negotiable · Section E
Attorney Fee
Negotiable · Section C
Courier Fee
Negotiable · Section H
Credit Report Fee
Non-negotiable · Section B
Flood Certification Fee
Non-negotiable · Section B
Tax Service Fee
Non-negotiable · Section B
Wire Transfer Fee
Negotiable · Section H
Document Preparation Fee
Negotiable · Section A
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Illinois technically does not require attorneys at closing by statute, but attorney involvement is standard practice throughout the state and essentially universal in the Chicago area. Most IL purchase contracts include a 5-business-day attorney modification period. Attorney fees are typically flat per transaction: $500–$800 for straightforward downstate purchases, $800–$1,500 in the Chicago metro.
The City of Chicago imposes one of the highest buyer-paid transfer taxes in the country: $7.50 per $1,000 of purchase price. On a $400,000 Chicago purchase, the buyer pays $3,000 in city transfer tax alone. The seller pays $3.00/$1,000 city + $0.50/$1,000 county + $1.00/$1,000 state = $4.50/$1,000 total. Outside Chicago, only the state transfer tax ($1.00/$1,000, seller) applies in most suburbs — although some Chicago suburbs impose additional local transfer taxes of their own.
Illinois property taxes are paid in arrears and are among the highest in the Midwest. Cook County effective rates average 1.89%–2.07% of market value. Because taxes are paid a year late, the seller must credit the buyer at closing for the portion of the current year's taxes already accrued but not yet billed. This is often a significant closing item — on a $290,000 home at 2% effective rate, that's roughly $5,800/year, or about $4,350 if closing in October (three-quarters of the year accrued).
Title insurance in Illinois uses a flat-rate schedule rather than a linear per-thousand formula. Chicago-area major insurers (Chicago Title, Old Republic) charge approximately $2,100–$2,300 for a $290,000 owner's policy. Simultaneous issue discounts apply for the lender's policy. Illinois is a file-and-use state.
A plat of survey is typically required by lenders for single-family homes in Illinois. By custom, the seller provides a current survey. In many transactions, the seller's existing survey is acceptable if recent — ask whether it can be reused with an affidavit. New surveys run $400–$700 in Illinois.
Illinois buyer closing costs typically run $5,000–$13,000 depending on location and purchase price. Outside Chicago, the main costs are title insurance, lender fees, attorney fees ($500–$1,000), and the modest state transfer tax (seller-paid). In Chicago, buyers also pay the city transfer tax of $7.50/$1,000 — on a $400,000 purchase, that's $3,000 in buyer-paid transfer tax alone.
The City of Chicago imposes a two-sided transfer tax: the buyer pays $7.50 per $1,000 of purchase price, and the seller pays $3.00 per $1,000. The seller also pays Cook County ($0.50/$1,000) and state ($1.00/$1,000) transfer taxes. On a $400,000 Chicago purchase, the buyer's city transfer tax is $3,000; the seller's combined state + county + city taxes are $1,800. The 'Bring Chicago Home' graduated mansion tax referendum (up to $30/$500 for $1.5M+ sales) was defeated by voters in March 2024 — current flat rates remain in effect.
Not legally. But attorney involvement is standard practice throughout Illinois and effectively universal in the Chicago metro. Most IL purchase contracts include a 5-business-day attorney modification period. IL attorney fees run $500–$1,500 flat depending on the market. It is inadvisable to close without an attorney in Illinois.
Illinois property taxes are paid in arrears — the tax bill you pay in 2026 covers 2024 or 2025 depending on the county. At closing, the seller must credit the buyer for the portion of the current year's taxes already accrued but not yet billed. In Cook County, this is typically calculated at 105% of the prior year's tax bill, prorated to the closing date. On a $290,000 Cook County home, this proration credit can be $3,000–$5,000 — a meaningful cash inflow for the buyer.
Yes, modestly. Illinois is a file-and-use state and title insurance uses flat-rate schedules. Chicago-area major insurers charge approximately $2,100–$2,300 for a $290,000 owner's policy. Downstate Illinois rates are typically 10%–20% lower. In both cases, Illinois title rates are among the lowest in the Midwest.
Usually yes. Most Illinois lenders require a current plat of survey for single-family homes. By custom, the seller provides the survey. In many transactions, the seller's existing survey can be reused if recent, often with a survey affidavit. New surveys in Illinois typically run $400–$700. Condos generally do not require a survey.
Illinois closing costs average about 2.1% of the purchase price statewide. Outside Chicago, costs are near the national average — the state transfer tax is modest and title insurance rates are among the lowest in the country for the Midwest. Chicago-area purchases are materially more expensive due to the buyer's city transfer tax ($7.50/$1,000), higher title rates, and mandatory attorney fees.
Compared to neighboring states: Indiana and Iowa have no transfer taxes and much lower closing costs overall. Wisconsin charges a 0.3% transfer fee but has no buyer transfer tax. Missouri has no transfer tax. None of these states impose a buyer-paid municipal transfer tax comparable to Chicago's. Michigan has a state transfer tax plus county tax totaling about $8.60/$1,000 — split between buyer and seller — making it slightly more expensive than most of Illinois but less than Chicago.
Within Illinois, the cost gap between Chicago and downstate is significant. A $290,000 purchase in suburban Champaign involves roughly $1,500 in transfer taxes (state only, seller-paid) plus standard title and attorney fees. The same purchase price in Chicago involves $3,000 in buyer city transfer taxes alone, plus attorney fees, higher title rates, and property tax proration obligations from the seller.
IHDA (Illinois Housing Development Authority) offers first-time buyer programs including the IHDAccess Forgivable program, which provides 4% of the purchase price (up to $6,000) as a forgivable down payment and closing cost assistance. The IHDAccess Deferred program provides 5% as a 0% interest deferred loan. Income limits and purchase price caps apply by county.
Chicago-area first-time buyers can also explore the City of Chicago's ILDACP (City Assisted Mortgage Program) and the Neighborhood Lending Programs run by various CDFIs. Some programs specifically target certain neighborhoods and offer below-market rates plus closing cost assistance.
The seller's property tax proration credit is a significant cash inflow for the buyer in Illinois. At a typical October closing on a $290,000 Cook County home, the seller credits approximately $4,000–$4,500 toward the current year's accrued taxes. This reduces your out-of-pocket cash at closing and is one of the largest 'hidden benefits' of buying in Illinois.
Chicago's buyer transfer tax ($7.50/$1,000) cannot be negotiated — but if you're purchasing in a suburb just outside the Chicago city limits, even one mile can mean the difference between paying the buyer transfer tax or not. Verify the exact municipality for any property before committing.
Refinancing in Illinois typically costs $3,500 to $6,500. Illinois has no mortgage recording tax. The state real estate transfer tax (RETT) and county/city transfer taxes apply only to property transfers, not refinances. The main costs are lender origination fees (the most negotiable item), the lender's title insurance policy (often eligible for a reissue rate discount), and the appraisal.
For the full refinance guide tailored to Illinois — including the title reissue discount, lender-fee benchmarks, and the patterns we see most often on IL refinance LEs — see the dedicated Illinois refinance page at /refinance/illinois.
Nearby states: Indiana · Iowa · Kentucky · Missouri · Wisconsin
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