What is a Full Payment Certificate in Chicago?

It is a certificate from the Department of Finance saying the water and sewer account is paid off or that the balance does not carry over to the new owner. It costs $50 and is required on every Chicago transfer, including exempt ones. Without it you cannot get city transfer stamps, and without stamps the deed cannot be recorded.

Is a Chicago transfer exempt if the price is under $500?

The city exempts transfers where the price is less than $500, and the state exempts transfers where the consideration is under $100. Exempt does not mean paperwork free. Chicago still requires a declaration describing the exemption, you still get a zero dollar stamp, and you still need the water Full Payment Certificate.

Do sellers still need a building registration in Chicago?

No. The multiple dwelling registration requirement was repealed on September 6, 2017, though it still shows up on older closing checklists and city paperwork. Vacant buildings are a separate matter: the owner must register a vacant building within 30 days, and that obligation follows the new owner after a sale.

Chicago Transfer Tax: What It Costs and Who Pays

Q: How much is the transfer tax on a Chicago home sale?

Three layers. Illinois charges $1 per $1,000 of the sale price. The county charges 50 cents per $1,000. The city of Chicago charges $10.50 per $1,000, split between buyer and seller. On a $400,000 sale that is $400 to the state, $200 to Cook County, and $4,200 to the city, for $4,800 total.

Q: Who pays the transfer tax in Illinois?

The state statute does not name a payer, so it comes down to custom and the contract, and by custom the seller pays the state and county portions. Chicago is different because the ordinance assigns it: the buyer pays $3.75 per $500 as the base city tax, and the seller pays $1.50 per $500, which is the CTA portion. If one side does not pay, the ordinance can make the other side liable.

Q: Does every county in Illinois charge a transfer tax?

Not automatically. State law lets a county board impose up to 25 cents per $500, which is 50 cents per $1,000, and the Chicago area counties all do. Since it is optional, confirm it for the county where the property sits rather than assuming.

Q: Is a stamp tax the same as a transfer tax?

Yes. The stamp is just how the tax gets paid. You file the declaration, pay the tax, and get stamps that go on the deed. A recorder will not accept a deed for recording without the required stamps.

Q: Do you need a zoning certificate to sell a home in Chicago?

You need one if the property is residential with one to five dwelling units and is not a condo or co-op. Newly built homes sold to their first occupant are also excluded. It costs $120, comes from the Department of Planning and Development, and the city has five business days to act on a complete application. It certifies how many units are legal under the zoning ordinance, not that the building meets the building code.

Chicago closings get delayed for a boring reason. Not financing, not title. Somebody did not order a $50 water certificate, and without it the city will not issue transfer stamps, and without stamps the deed cannot be recorded.

Three layers of transfer tax apply to a Chicago sale, and the city requires two documents before it will sell you the stamps. Here is all of it in one place.

How much is the transfer tax on a Chicago home sale?

Three governments tax the same sale.

Who	Rate	Who pays
Illinois	$1.00 per $1,000	Seller, by custom
Cook County	$0.50 per $1,000	Seller, by custom
City of Chicago	$10.50 per $1,000	$7.50 buyer, $3.00 seller

The statutes write these in $500 increments, which is where the odd numbers come from: 50 cents per $500 to the state, 25 cents per $500 to the county, and $5.25 per $500 to the city, split $3.75 buyer and $1.50 seller.

On a $400,000 sale:

Illinois: $400
Cook County: $200
Chicago: $3,000 from the buyer, $1,200 from the seller
Total: $4,800

The city is about 88 percent of the bill. That is the number worth knowing before you quote a seller their net.

Who pays the transfer tax in Illinois?

For the state and county portions, nobody is named in the statute. The Illinois Real Estate Transfer Tax Law taxes “the privilege of transferring title,” and it does not say which side pays. Courts reading that language have pointed out that the only party with the privilege to transfer is the seller, and Paragraph 18 of the Multi-Board contract matches by having the seller deliver the deed with the stamps already paid. So custom, the nature of the tax, and the contract all point the same way. It can still be negotiated. Lake County’s own explainer puts it plainly: the tax “may be paid by the buyer or the seller. Check your sales contract.”

Chicago is different. The ordinance assigns it. The buyer owes $3.75 per $500, which is the base city tax. The seller owes $1.50 per $500, which is the CTA portion added in 2008.

Two details worth knowing. The ordinance makes buyer and seller jointly and severally liable for an unpaid CTA portion. And if no declaration gets filed at all, each side becomes liable for the other’s unpaid tax, plus interest and penalties. The city built the rules so somebody pays.

Does every county in Illinois charge a transfer tax?

Not automatically. State law says a county board may impose the tax, at up to 25 cents per $500, which is 50 cents per $1,000. It is permission, not a mandate.

In practice the Chicago area counties charge it: Cook, DuPage, Lake, Will, Kane, McHenry and DeKalb are all at the 50 cents per $1,000 figure. Since it is optional statewide, confirm it for the county the property sits in rather than assuming, especially downstate.

The state portion of $1 per $1,000 applies everywhere in Illinois.

Is a stamp tax the same as a transfer tax?

Yes. The stamp is just the receipt.

You file a declaration, pay the tax, and get stamps that go on the deed. In Illinois a recorder will not accept a deed for recording unless the required revenue stamps have been purchased. Chicago has required its transfer tax declarations to be filed online through MyDec since January 1, 2016.

So the chain is: declaration, then stamps, then recording. Break the chain anywhere and the deed does not get recorded.

What is exempt, and does exempt mean no paperwork?

Exempt means no tax. It does not mean no paperwork.

Chicago exempts transfers where the price is under $500. The state exempts transfers where the consideration is under $100, which is the exemption behind most family and trust transfers, including the quit claim deeds people use to add a spouse or move a house into a living trust. Chicago also exempts transfers to and from government bodies and charities, deeds that only secure debt, corrective deeds with no added consideration, tax deeds, deeds in foreclosure to the lender, and a primary residence transfer between spouses ordered by a court in a divorce or legal separation.

Even then, the city requires a declaration describing the exemption and supporting documents. You get a zero dollar stamp instead of a paid one. And you still need the water certificate below.

One more worth flagging for anyone over 65: the city refunds the CTA portion when the buyer is 65 or older, occupies the home as their principal residence for at least a year after the transfer, and the price is $250,000 or less. It is claimed as a refund within three years, not taken at closing.

What is a Full Payment Certificate, and why does it stop closings?

It is the city’s certificate that the water and sewer account is settled. The Department of Finance issues it. It costs $50, and it is required on every Chicago transfer, exempt ones included.

The city is blunt about the consequence: without it, the parties cannot get the transfer tax stamps needed to record the deed.

Two things make it a scheduling problem instead of a formality:

The city says applications can be finished the same day, but tells agents submitting them to allow up to 10 business days.
The certificate expires after 60 days. On a metered account that runs from the last actual meter reading. On a non metered account, a condo unit or a vacant lot it runs from the day the certificate was completed.

So it is not something to order the week of closing, and not something to order three months out either.

There is also a liability tail. If the certificate was required and nobody got one before the transfer, the ordinance makes buyer and seller jointly and severally liable for the outstanding water and sewer balance. Separately, delinquent water charges can become a lien on the property under Illinois law after notice to the owner. That is why the certificate exists.

Do you need a zoning certificate to sell a home in Chicago?

If the building is residential with one to five dwelling units and is not a condo or co-op, yes.

Some specifics people get wrong:

It is one to five units, not one to four
Condos and co-ops are excluded
Newly built homes sold to their first occupant are excluded
The fee is $120
It comes from the Department of Planning and Development
The city has five business days to act on a complete application
The certificate is good for one year, so it can be pulled early

What it certifies is narrow and important: how many dwelling units are legal at that address under the zoning ordinance. It is not a statement that the building complies with the building code.

This is the one that surprises people. A two flat that someone finished into a three flat is a zoning problem that shows up at the sale, not a paperwork errand. Better to find out in week one than the day before closing.

No routine inspection is required for either document. The city inspects only when the records cannot answer the question.

Do sellers still need a building registration?

No, and this one is worth deleting from your checklist.

The multiple dwelling registration requirement was repealed on September 6, 2017. It still appears on older closing checklists and on city transfer tax paperwork that has not been updated, which sends people chasing a certificate that no longer exists.

Vacant buildings are different. A vacant building has to be registered with the Department of Buildings within 30 days, the registration renews every six months, and the fee is $300. Buying a vacant building starts that clock on the new owner.

What to order, and when

Right after the contract: order the Full Payment Certificate, and the zoning certificate if the property is one to five units and not a condo. The zoning certificate is good for a year and the city has five business days to act.
Two to three weeks out: follow up on the water certificate if it has not come back. Watch the 60 day window if there is a final meter reading.
Before closing: file the declaration in MyDec, then buy the stamps.
At recording: the deed goes to the Cook County Clerk with state, county and city stamps on it.

Condo sellers skip the zoning certificate. Nobody skips the water certificate. For how the rest of the deal fits around these steps, here is what to expect at an Illinois closing.

If you want a second set of eyes on a Chicago file, or you are not sure which documents your property needs, let’s talk.

Rates, fees and requirements are current as of September 2026, and city fees change. This is general information about Chicago practice, not legal advice for your transaction.