What It Costs to Buy a Home in Chicago

Beyond the down payment, a Chicago buyer’s main closing costs are lender and title charges, an attorney fee, prepaid taxes and insurance, and the buyer’s share of the City of Chicago transfer tax: $3.75 per $500 of the price, or 0.75% ($3,000 on a $400,000 home). The seller usually gives the buyer a credit at closing for property taxes, because Cook County taxes are billed a year behind.

Last reviewed October 1, 2026 · Chicago First Time Home Buyer editorial team

At a glance

City transfer tax, buyer’s share	$3.75 per $500 of the price (0.75%)
Transfer taxes the seller pays	City $1.50, Cook County $0.25 and Illinois $0.50 per $500
Property tax credit	Seller credits the buyer for taxes owed for the seller’s time in the home; contracts often use 105% to 110% of the last full bill
Final numbers	Your lender must give you the Closing Disclosure at least 3 business days before closing
Your own money with HomeGrown	At least 1% of the purchase price
2026 loan limits, Cook County	FHA $541,287 and conforming $832,750 for a one-unit home
Property tax bills	Two installments a year; tax year 2025’s second installment was due October 1, 2026

What a buyer pays at closing

Down payment. The part of the price not covered by your loan. Down payment assistance can cover some or all of it.
Lender charges. Origination or underwriting fees, any points you choose to buy, and the appraisal.
Title charges. The lender’s title insurance policy, title search and closing (escrow) fees.
Your attorney. Most Chicago buyers hire a real estate attorney, who handles attorney review and the closing.
City transfer tax. The buyer’s share is 0.75% of the price. See Chicago transfer tax for amounts by price.
Prepaid items. The first year of homeowners insurance and deposits into an escrow account for future tax and insurance bills.
Condo charges. For condos, any move-in fee and the first month’s association assessment.

The property tax credit

Cook County property taxes are paid in arrears: the bills you pay in a year cover the year before. So the first bills a new owner pays include taxes for months the seller owned the home. To even this out, the seller gives the buyer a credit at closing. Many contracts base it on 105% to 110% of the most recent full-year bill, to allow for rising assessments and rates. The credit lowers the cash you bring to closing, but you will pay the full bills when they arrive, so set the money aside or let your escrow account handle it.

After you move in, apply for the Cook County Homeowner Exemption. It does not carry over from the seller.

How assistance can cover costs

The City’s HomeGrown grant can be used for the down payment and eligible closing costs, and you must put in at least 1% of the price yourself. IHDA’s IHDAccess Home provides up to $15,000 for down payment and closing costs. HomeGrown cannot be combined with IHDA bond-funded assistance, so confirm any combination with your lender first.

Ongoing costs and recent updates

Common questions

How much is the Chicago transfer tax for buyers?

The buyer pays the City of Chicago $3.75 per $500 of the purchase price, which is 0.75%. On a $400,000 home that is $3,000, paid at closing.

Who pays the Cook County and Illinois transfer taxes?

The seller. The seller also pays the remaining $1.50 per $500 of the city tax.

Why does the seller give me a property tax credit?

Cook County taxes are billed a year behind, so the bills you pay after closing include the seller’s share. The credit, often 105% to 110% of the last full bill prorated to the closing date, covers it.

When will I know my exact closing costs?

Your lender must give you the Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate and ask about any changes.

Sources

Cite this page: Chicago First Time Home Buyer, “What It Costs to Buy a Home in Chicago,” reviewed October 1, 2026, chicagofirsttimehomebuyer.com/costs/.