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The conveyance in Illinois is taxed as a result of the Illinois Real Estate Transfer Tax Act. The amount subject to taxation is the sales price minus any assumed mortgage or mortgage taken “subject to.”

State tax – \$0.50 per \$500 or fraction thereof,
County tax – \$0 .25 per \$500 or fraction thereof

If the total amount of consideration is less than \$100 no tax is required.

1. A property sold for \$125,000. The purchaser assumed a mortgage on the property in the amount of \$37,450. What is the total amount of transfer tax?

Solution Step 1-Sales price minus assumed mortgage = taxable amount
Calculation – \$125,000 – \$37,450 = \$87,550

Solution Step 2 — Taxable units = Each 500 and then any Fraction of 500
Calculation – \$87,550/500 = 175 plus another unit for the \$50 left over = 176 units

Solution Step 3 — State Tax = Number of Units x \$0.50
Calculation — 176 x \$0.50 = \$88.00

Solution Step 4 = County Tax = Number of Units x \$0.25
Calculation — 176 x \$0.25 = \$44.00

Solution Step 5 — Total Transfer Tax = State Tax plus County Tax.
Calculation = \$88.00 + 44.00 = \$132.00
Answer: \$132 total amount of transfer tax