Closing Costs in Illinois: Cook County and Chicago Add-Ons

Illinois has moderate statewide closing costs (2-2.5%), but Chicago and Cook County add their own taxes that push city closings into the 3%+ range. The state’s high property tax rate (2.27% effective, 3rd highest in US) drives large prepaid escrows at closing.

Use the calculator below — your state has already been selected. Adjust the home price, down payment, and loan type for an estimate calibrated to Illinois.

Illinois closing cost structure

1. State Real Estate Transfer Tax

$0.50 per $500 of home value (0.1%) — paid by the seller. Buyer doesn't pay state transfer tax.

2. Cook County and Chicago — buyer pays

Cook County adds 0.05% (paid by buyer). Chicago adds another 0.75% city transfer tax (paid by the buyer). On a $400K Chicago home, that's $3,000 just in Chicago + Cook County buyer-side transfer taxes.

3. High property tax escrow

Illinois has the 3rd highest effective property tax rate in the US (2.27%). On a $400K home, that's $9,080/year. Your lender collects 3 months at closing — $2,270 in prepaid tax.

4. No attorney requirement, but customary

Illinois doesn't legally require attorney representation, but it's customary practice. Buyer-side attorney $800-$1,200 typical.

How to reduce Illinois closing costs

1. If buying in Chicago, factor in the 0.8% buyer-side transfer tax upfront — it's $3,200 on a $400K home.
2. Property tax in IL is paid in arrears. Your closing prorations will favor you — the seller pays you for tax accrued before closing.
3. Shop title insurance. IL is competitive with non-regulated pricing.
4. Watch HOA / condo association transfer fees — IL HOAs often charge $200-$500.
5. Get three Loan Estimates. IL lender pricing varies widely especially in Chicago metro.

Frequently asked questions (Illinois)

Does the buyer pay Chicago's transfer tax?

Yes. Chicago's 0.75% real property transfer tax is paid by the buyer. Cook County's additional 0.05% is also buyer-paid. Combined: 0.8% × purchase price for a Chicago buyer.

Why are Illinois property tax escrows so high?

Illinois has the 3rd-highest effective property tax rate in the US at 2.27%. On a $400K home, annual property tax is $9,080 — the 3-month escrow collection at closing is $2,270.

Is an attorney required for IL home closings?

Not legally required, but customary. The vast majority of IL buyers hire an attorney for $800-$1,200 to review the contract, run title work, and represent them at closing.

What are Illinois closing costs on a $300K Springfield home?

Approximately $7,000-$10,000 for the buyer. Prepaid escrows ($1,700+), title insurance ($1,500), attorney ($1,000), lender fees ($2,250). Chicago buyers add $2,400 in city transfer tax.

About these estimates

The calculator above uses Illinois state averages for transfer taxes, recording fees, title insurance, attorney requirements, and property tax rates — sourced from the Illinois Department of Revenue, the 2024 ClosingCorp survey, the Tax Foundation 2024 property tax rankings, and state-specific regulatory tariffs. Real closing costs depend on your specific lender, the property, and the county-level rules where you're buying. For a sanity check on the calculator's output, request a Loan Estimate from your lender (federal law requires one within 3 business days of mortgage application).

Related

• Main Closing Cost Calculator (all 50 states)
• Closing Costs by State 2026 — 10 most expensive and 10 cheapest
• Rent vs Buy Calculator
• FHA vs Conventional Loan Calculator
• All CalcCottage calculators

Reviewed by the CalcCottage editorial team. Updated May 14, 2026. Estimates only — not financial advice.