Are transfer taxes making your Evanston closing budget feel like a moving target? You’re not alone. Between state rules, county recording fees, and potential city requirements, it can be hard to pin down who pays and how much. In this guide, you’ll learn the layers that can apply in Evanston, how the amounts are calculated, who typically pays by contract, and how these charges show up at closing. Let’s dive in.
What a transfer tax covers
A real estate transfer tax is a charge assessed when ownership of property changes hands. It helps fund government services and is separate from property taxes and title insurance. In an Evanston transaction, transfer-related costs can include state-level taxes, county recording charges, and potentially a municipal tax, plus standard recording and filing fees.
Which taxes apply in Evanston
Multiple layers can apply to the same sale. The total you pay is the sum of all applicable taxes and fees.
- State of Illinois documentary/transfer tax. This is a statewide tax on conveyances. It is calculated under state statute and administered through recording offices.
- Cook County recording and transfer-related fees. Expect county recording charges and any required forms or declarations when the deed is recorded.
- Municipal (City of Evanston) transfer tax. Some Illinois municipalities levy their own transfer tax. Evanston may have an ordinance or fees that affect transfers. Confirm current rules with the City of Evanston before you budget.
- Other recording and closing charges. Title company fees, document preparation, and municipal filing requirements can also appear on your closing statement.
Because rates and rules can change, confirm each layer for your address and timing with the City of Evanston, the Cook County Recorder of Deeds, and the Illinois Department of Revenue, as well as your title company.
Who pays: law, contract, and custom
Legally, transfer taxes are due when the deed is recorded. Statutes often allow either party to pay, and the obligation is satisfied at recording. In practice, your purchase contract usually decides who pays each tax and fee. If the contract is silent, local custom or negotiation applies.
Customs vary by community around Chicagoland. Do not assume a standard split. Ask your agent to review your contract and confirm how the line items will appear on your Closing Disclosure so you know exactly who is charged for each item.
How amounts are calculated
Illinois uses two common methods to compute transfer taxes:
- Per-$500 method. A fixed amount for every $500 of consideration. Fractions are typically rounded up to the next $500 increment.
- Percentage method. A straightforward percentage of the sale price set by the municipality.
Title companies follow a simple process:
- Determine the taxable consideration, usually the contract sale price. Certain deductions or exceptions can apply under statute.
- Apply each jurisdiction’s formula. For per-$500 methods, calculate the number of $500 units and multiply by the rate. For percentage methods, multiply the sale price by the percentage.
- Round as required by law. Per-$500 methods generally round up.
- Add county recording fees and any municipal fixed fees.
If you want a precise estimate, your title company or closing attorney can prepare a draft closing statement using the current official rates.
When and how you pay at closing
Transfer taxes and recording fees are paid when the deed is recorded. Your title company will:
- Prepare the deed and closing statements.
- Calculate all taxes and recording fees.
- Collect the funds in escrow from the party responsible under the contract.
- Record the deed with Cook County and pay the taxes and fees to the proper offices.
- Provide receipts and proof of recording.
These items appear on your Closing Disclosure (or settlement statement) as line items, so you can verify the amounts and who is paying.
What can delay recording
Most closings run smoothly, but delays can happen if:
- Funds collected for taxes and fees are short.
- There’s a dispute over who pays specific charges.
- Required affidavits, transfer declarations, tax stamps, or exemption documents are missing.
- Title issues must be cleared before recording.
Avoid surprises by confirming allocation in your contract and providing any needed documents early.
Exemptions and special situations
Many jurisdictions allow exemptions for certain transfers. Common examples include:
- Transfers between spouses or incident to divorce
- Transfers to or from government entities
- Some intra-family transfers or transfers to a trust
- Transfers by foreclosure or in lieu of foreclosure
Rules vary and documentation is required. If you think an exemption could apply, alert your title company well before closing so they can provide the correct forms and instructions.
Extra fees to watch
Beyond the tax itself, expect:
- Cook County recording fees, often per document and per page
- Transfer declaration forms or affidavits stating the sale price and parties
- Municipal certificates or local filing fees, if required
These are separate from transfer taxes and also separate from property tax prorations and title insurance premiums.
Step-by-step: estimate your total
Use this checklist to get a reliable estimate early:
- Confirm the taxable consideration on your contract. Ask if any deductions apply under state statute.
- Contact the City of Evanston to confirm whether a municipal transfer tax applies to your address and, if so, the current rate and any required forms.
- Check Cook County Recorder of Deeds for the current recording fee schedule and transfer declaration requirements.
- Verify the Illinois state transfer/documentary tax rate and method with the Illinois Department of Revenue or state statutes.
- Ask your title company for a draft Closing Disclosure with line items for each tax and fee.
- Review your purchase contract to confirm who pays each item, and make changes before your mortgage lender issues the final Closing Disclosure.
Where to confirm current rates
Because ordinances and fee schedules change, always confirm with:
- City of Evanston Finance Department or City Clerk for municipal transfer tax rules and certificates
- Cook County Recorder of Deeds for recording fees and required forms
- Illinois Department of Revenue or state statutes for the state documentary/transfer tax
- Your title company or closing attorney for final calculations and collection
Our local take
As an Evanston-based team, we see how contract language and timing affect your bottom line. We help you confirm the correct layers, coordinate with your title company, and get exemption documents in early so there are no last-minute surprises. If you’re selling, we’ll show you how transfer taxes fit within a broader net-proceeds plan alongside staging, market prep, and pricing.
Ready to map out your numbers and next steps? Connect with Allie Payne for a clear, local plan.
FAQs
What transfer taxes might apply in an Evanston home sale?
- You may see a state transfer/documentary tax, Cook County recording fees, and potentially a City of Evanston municipal transfer tax, plus standard recording and filing charges.
Who typically pays the Evanston transfer tax in a sale?
- Allocation is determined by your purchase contract; if unspecified, local custom or negotiation applies, and the Closing Disclosure will show who is charged.
How do I calculate the transfer tax amount on my price?
- Identify the taxable consideration, apply each jurisdiction’s formula (per-$500 or percentage), round as required, and add county recording fees and any municipal fixed fees.
Will the transfer tax appear on my Closing Disclosure and when is it paid?
- Yes, transfer taxes and recording fees appear as line items, and they are paid when the deed is recorded, with funds collected in escrow at closing.
Are there exemptions for family or hardship transfers?
- Many jurisdictions allow exemptions such as between spouses, to or from government entities, some intra-family transfers or trusts, and certain foreclosure-related transfers with proper documentation.
Could transfer tax issues delay my closing?
- Delays can occur if funds are short, allocation is disputed, required affidavits or certificates are missing, or title issues need resolution before recording.
How can I get an early estimate of my closing costs?
- Ask your title company for a draft closing statement after confirming current rates with the City of Evanston, Cook County, and the Illinois Department of Revenue, and review allocation in your contract.
