Costs of Selling Land in Illinois

Selling Costs in Illinois: What to Know

Selling land in Illinois comes with a few fixed taxes and several costs that depend on who you hire. The state and most counties charge a transfer tax, and some cities add their own.

This page lists each cost, who usually pays it, and where the rate comes from. It ends with a worked example on a $25,000 lot, plus capital gains basics.

Illinois transfer tax: state, county and city

Illinois charges a state transfer tax of 50 cents for each $500 of value, or part of $500. That is the same as $1 per $1,000. The law is 35 ILCS 200/31-10. The deed must be filed with a transfer declaration (Form PTAX-203, often through MyDec).

Counties may add a tax of 25 cents per $500. Cook County charges this rate. Home rule cities can add their own tax. Chicago charges $3.75 per $500, generally paid by the buyer, plus a $1.50 per $500 CTA portion, generally paid by the seller.

Other home rule cities set their own rates and rules. Check with the city clerk or finance office before you set a net price.

• State: $0.50 per $500 of value
• County (where imposed, including Cook County): $0.25 per $500
• Chicago: $3.75 per $500 (buyer) plus $1.50 per $500 CTA portion (seller)
• Other cities: varies; ask the city

Who pays what by custom in Illinois

State law sets the transfer tax rate but leaves room for the contract to decide who pays. By custom, the seller usually pays the state and county stamps. In Chicago, the city portion falls on the buyer and the CTA portion on the seller.

The buyer usually pays to record the deed and for any loan costs. Title and closing fees are often split. Your contract controls, so read the cost section before you sign.

Attorney or title company closing

Illinois does not require a specific type of closer for a land sale. Many sales close at a title company. In the Chicago area, buyers and sellers often each hire an attorney as well.

Attorney fees are not set by law. Ask for a flat fee quote before you list.

Capital gains tax when you sell land in Illinois

Your gain is the sale price minus your basis. Basis is usually what you paid plus improvements and some purchase and sale costs. If you inherited the land, your basis is usually the value on the date of death, so the gain is often small.

If you owned the land for more than one year, the federal government taxes the gain at 0%, 15% or 20%, depending on your taxable income. For 2025 the 0% rate applies to single filers with taxable income up to $48,350. Land held one year or less is taxed as ordinary income. Higher earners can also owe the net investment income tax. See IRS Topic 409.

Illinois taxes individual income at a flat 4.95%. A capital gain is part of your Illinois income, so the gain on land is taxed at that rate. See the Illinois Department of Revenue income tax rates.

The closing agent usually reports the sale to the IRS on Form 1099-S. Vacant land is reportable real estate. See the Form 1099-S instructions. This page is general information, not legal or tax advice. Rules change, so confirm with the office named or a tax professional.

How selling to a cash buyer changes your costs

On a listed sale, the seller often pays an agent commission, part of the closing fee, the title policy and any transfer tax custom puts on the seller. Those costs come out of your proceeds.

When you sell your Illinois land to EasyLotBuyer, there are no fees or commissions and we pay the closing costs. We make a cash offer within 24 hours and can close in as few as 7 days. If the land has back taxes, they are paid at closing from the sale. Capital gains tax is still yours, because it depends on your own tax situation.

• No agent commission
• We pay closing costs
• Back taxes paid at closing from the sale
• We buy land with liens, title issues or no road access, and from heirs and estates