Key takeaway: Buying a home in Chicago usually costs 2% to 3% of the price at closing, and the biggest single item is the city transfer tax, which charges buyers $3.75 for every $500 of the price, or $3,000 on a $400,000 home.
Chicago has one of the higher closing-cost bills in Illinois because the city charges buyers its own transfer tax on top of the usual lender, title and attorney fees. Condo buyers also take on a monthly assessment for as long as they own. None of this should scare you off; it just belongs in the budget from the start. Here is what to plan for in 2026.
Transfer taxes: who pays what
| Tax | Rate | Usually paid by | On a $400,000 sale |
|---|---|---|---|
| City of Chicago (buyer share) | $3.75 per $500 (0.75%) | Buyer | $3,000 |
| City of Chicago (seller share, the CTA portion) | $1.50 per $500 (0.30%) | Seller | $1,200 |
| Cook County | $0.25 per $500 | Seller | $200 |
| State of Illinois | $0.50 per $500 | Seller | $400 |
Source: City of Chicago Department of Revenue; Chicago Title transfer tax list, July 1, 2026; Illinois Realtors. Dollar amounts are our calculation. Who pays the county and state taxes is custom, not law, and can be negotiated.
The 2024 Bring Chicago Home referendum, which would have cut the city rate on homes under $1 million and raised it on pricier sales, failed in March 2024, so the flat rate above still applies (CBS Chicago).
Other Chicago closing costs for buyers
| Item | Typical cost | Source |
|---|---|---|
| Real estate attorney (standard in Illinois) | $750 to $1,250 | AmeriSave; Engel and Volkers Chicago |
| Lender’s title insurance | About $575 to $1,000 | AmeriSave; Engel and Volkers Chicago |
| Appraisal | About $500 to $600 | AmeriSave |
| Inspection and survey | About $500 to $1,200 | Engel and Volkers Chicago |
| Cook County recording fee | $98 per standard document, so about $196 for a deed and a mortgage (our calculation) | Cook County Clerk |
| Lender fees | Vary by lender; compare loan estimates |
Illinois property taxes are paid a year behind, so the seller gives the buyer a credit at closing for taxes owed but not yet billed; in Cook County it is commonly figured at 110% of the last full bill (AmeriSave). That credit helps offset your costs, but set it aside, because you will pay that bill when it arrives.
A sample closing budget
| Item | $400,000 condo, 20% down |
|---|---|
| City transfer tax (buyer share) | $3,000 |
| Attorney | $1,000 |
| Lender’s title policy | $800 |
| Appraisal | $550 |
| Inspection | $500 |
| Recording fees | $196 |
| Total before lender fees and prepaid items | About $6,050 |
Source: our calculation using the midpoints above. That is about 1.5% of the price before lender fees, prepaid insurance and escrow, which is why most estimates land at 2% to 3% (Engel and Volkers Chicago).
What sellers need before closing
- Full Payment Certificate: a $50 water certificate showing the water bill is paid, required before the city transfer stamps are issued; allow up to 10 business days (City of Chicago).
- Certificate of Zoning Compliance: $120 for buildings with one to five units that are not condos or co-ops (City of Chicago).
- Condo resale documents: under Section 22.1 of the Illinois Condominium Property Act, the board must provide the declaration, budget, reserve status, pending lawsuits and insurance details within 10 business days; the fee is capped at $375, adjusted yearly for inflation, plus up to $100 for 72-hour rush delivery (Illinois General Assembly).
Condo assessments
Most Chicago condo assessments run about $250 to $800 a month, and full-service towers can top $1,000, according to one 2026 buyer’s guide that gives these as estimates (AskDoss). Its ranges run from about $250 to $450 in Logan Square to $600 to $1,200 in the Gold Coast and Streeterville. Assessments often cover heat, water, insurance and door staff, so compare what is included, not just the number. As one real example, a condo at 2626 N. Lakeview Ave. that sold for $386,500 in October 2026 carried a $1,347 monthly assessment covering heat, air conditioning, water, insurance, a doorman, cable and internet (Coldwell Banker).
Before you buy, read the reserve study and recent board minutes in the 22.1 package. A healthy reserve fund lowers the odds of a special assessment, the one-time charge a building levies for big repairs.
Rates and prices right now
The 30-year fixed mortgage rate averaged 7.32% in the week of October 22, 2026 (Freddie Mac). Illinois Realtors put the City of Chicago median sale price at $389,900 in September 2026, up 8.3% from a year earlier (Illinois Realtors). To weigh buying against renting with your own numbers, try our rent vs. buy calculator, and see our property tax guide for what comes after closing.
Buying your first home? Our sister site, ChicagoFirstTimeHomebuyer.com, which Joe also runs, explains the Chicago transfer tax, attorney review and down payment programs step by step.
Sources
- City of Chicago: real property transfer tax handout
- Chicago Title: transfer tax list, July 1, 2026
- Illinois Realtors: transfer tax one-sheet
- CBS Chicago: Bring Chicago Home referendum fails
- AmeriSave: average closing costs in Illinois
- Engel and Volkers Chicago: Chicago closing costs
- Cook County Clerk: recording fees
- City of Chicago: Full Payment Certificates
- City of Chicago: Certificate of Zoning Compliance
- Illinois Condominium Property Act, Section 22.1
- AskDoss: buying a condo in Chicago 2026
- Coldwell Banker: 2626 N. Lakeview Ave. #1002
- Freddie Mac: Primary Mortgage Market Survey
- Illinois Realtors: City of Chicago, September 2026