New Chicago Transfer Tax

The Chicago City Council moved toward property sellers bearing the burden of an impending increase in Chicago’s real estate transfer tax. Buyers would be off the hook for the 40 percent increase.

Buyers already pay the current tax of $3.75 for every $500 of purchase price. Sellers now look to be hit with the $3 per $1,000 increase, which goes into effect on April 1.

The Home Builders Association of Greater Chicago feels sellers would be “stripped” of equity. Others feel that prices have appreciated so greatly over the last few years and have little sympathy.

Home sales that close before April 1 will not be subject to the higher tax.