Illinois laws and regulations topic guide
Illinois real estate transfer taxes
First identify the taxable interest, then the taxable value, then the government charging the tax. Illinois' state rate is $0.50 per $500 or fraction. The familiar $0.75 figure can combine state and county taxes; it is not the state rate by itself.
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The short answer
For a positive taxable value, Illinois state transfer tax is $0.50 multiplied by the number of $500 units, counting any fraction as a full unit. A county layer of $0.25 can bring the combined rate to $0.75 when both apply to the same base. Municipal taxes are separate. Deduct only supported amounts, including a qualifying outstanding mortgage when the transferring document states the subject-to condition. A tax exemption does not always remove declaration filing. For October 2026, the state paper-stamp phaseout has passed: counties issue electronic revenue stamps or alternative indicia.
The PSI outline effective June 24, 2026 places Transfer Taxes in Illinois III.C. Additional Illinois Laws and Regulations as a whole has 10 of the 40 scored state broker questions, not a quota for this page. These original exercises use public rules and stated assumptions; no score here is a validated pass predictor or an actual closing calculation.
Build the base before counting the units
- Identify what changed: real estate title, a defined beneficial interest or a controlling interest in a qualifying real estate entity. Recording is not the only trigger.
- Check an actual exemption before treating the transfer as taxable. Use the full facts and actual consideration, not the deed label or the fact that no cash changed hands.
- Start with the consideration the current instructions require. Include the specified exchange and remaining-mortgage amounts; handle an actual repair credit and genuine personal property under their own rules.
- Subtract only supported adjustments. A qualifying subject-to mortgage differs from a seller payoff or the buyer's new loan. A simultaneous exchange differs from a deferred Section 1031 exchange.
- For PTAX-203, follow the whole-dollar rounding instructions for Lines 11 through 18. At Line 18, divide the entered taxable value by 500 and round the unit count up. Do not use ordinary nearest-unit rounding.
- Calculate each government's layer under its own base, rate, exemptions and payer rules. Add only applicable amounts; do not silently apply every state deduction to a municipal tax.
- Separate the declaration, any supplement, evidence of payment and recording process. The earlier-of filing rule and 2026 electronic-stamp requirement are different from a requirement that every individual file through MyDec.
- Use truthful values and the proper county workflow. A contract can allocate economic cost, but it does not waive statutory collection rights or turn a private estimate into an approved filing.
| Question | Rule to apply | Boundary |
|---|---|---|
| State tax | $0.50 for each $500 or fraction | Use the taxable base and a ceiling |
| State plus stated county | $0.50 + $0.25 = $0.75 on the same units | Not a $0.75 state rate |
| Municipal tax | Separate local base, rate, exemption and payer rules | Do not assume every state deduction applies |
| Subject-to mortgage | Document states subject-to; amount remains outstanding | Not an ordinary seller payoff or new buyer loan |
| Personal property | Genuine included items and truthful values | Itemization thresholds are not deduction caps |
| Controlling interest | More than 50% of fair market value of all interests | Not voting count or exactly 50% alone |
| Ground lease limb | 30 or more years including all renewal or extension options | Whether or not some term has expired |
| Actual consideration below $100 | Specific state exemption under 31-45(e) | Not $100 or less; use actual qualifying facts |
| Exempt transfer | Check declaration independently | Qualified (b), (k), (m) filing rules and exceptions |
| PTAX-203-A | Line 11 over $1 million AND listed current-use category | Includes apartment building over 6 units; not every sale |
| PTAX-203-B | Follow its applicable alternative calculation route | Do not duplicate Step 2 when instructions say omit it |
| Declaration timing | At recording presentation OR within 3 business days after transfer, whichever earlier | No automatic delay until recording |
| State stamps in 2026 | Electronic revenue stamps or alternative indicia | Paper-stamp phaseout was December 31, 2025 |
| MyDec | Use the actual county participation and workflow | Electronic stamps do not prove every filer must use the same interface |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Tax rate vs. tax base | The rate is 50 cents per $500 or fraction for the state tax. The base is the taxable value after only authorized adjustments. A correct rate applied to the wrong base still produces the wrong answer. | What value receives the rate? |
| $500 fraction vs. ordinary rounding | A positive taxable value uses a ceiling for $500 units: any remaining fraction counts as a whole unit. A value only $1 above an exact boundary still adds a unit. This is separate from the form's whole-dollar instructions for monetary lines. | Does any partial $500 remain? |
| Full consideration vs. taxable value | PTAX-203 begins with full actual consideration, including a mortgage that remains subject. It then identifies personal property, qualifying exchanged real estate, and a documented subject-to mortgage to reach the taxable amount. | Starting figure or amount ultimately taxed? |
| Subject-to mortgage vs. seller loan payoff | A mortgage remaining against the property can qualify for exclusion when the transfer document says the transfer is subject to it. Paying the seller's loan from closing proceeds does not by itself create that statutory condition. | Does the transfer document preserve the existing mortgage? |
| Real property vs. personal property | Real estate includes the land, attached structures, and qualifying fixtures. Bona fide movable items may be personal property and separately stated, but calling an attached component furniture does not change its legal character. | Attached improvement or normally removed item? |
| Direct deed vs. indirect controlling-interest transfer | A deed transfers title directly. A controlling interest means more than 50% of the fair market value of all ownership or beneficial interests in a qualifying real estate entity. Voting percentage or an isolated exactly 50% transfer does not by itself satisfy that greater-than test. | Was the property sold, or was the property-owning entity sold? |
| State tax vs. local tax | Article 31 establishes the statewide layer. County and municipal taxes arise under separate authority, so their rates, applicability, and payer rules cannot be assumed from the state statute alone. | Which government imposed this layer? |
| Tax exemption vs. declaration exemption | A tax-exempt transfer can still require a declaration. The statute preserves filing for its qualified (b), (k) and (m) cases, with conditions and exceptions. The current printed form's abbreviated (b) and (k) boxes are not a complete reproduction of every statutory exemption. | No tax, no form, or both? |
| Revenue stamp vs. PTAX-203 | A revenue stamp or approved indicia evidences tax payment. PTAX-203 reports transaction facts. The state statute required paper revenue stamps to be phased out by December 31, 2025; thereafter counties issue electronic stamps or alternative indicia. That does not ban paper deeds or every paper declaration. | Proof of payment or declaration of facts? |
| Transfer tax vs. property tax | Transfer tax is imposed on the transfer privilege. Property tax is the recurring ad valorem charge tied to assessed property value. Transfer tax is not the same as a closing proration of annual property taxes. | One transfer event or recurring ownership charge? |
| $0.50 state and $0.75 combined | $0.50 is the state rate per $500 or fraction. Adding an applicable $0.25 county layer on the same units produces $0.75 combined, before any municipal tax. | Name the government before multiplying. |
| Documentation threshold and deduction ceiling | The personal-property itemization triggers are greater than 5% for residential property, excluding mobile-home value for that comparison, and greater than 25% for nonresidential property. They are not permission to invent values or maximum lawful deduction percentages. | Actual value first; required supporting detail second. |
| Statutory exemption and a checkbox on a form | Section 31-45(m) retains a declaration requirement for its qualified HOME-program transfers. Printed Line 16 shows (b) and (k), not an (m) box. Do not infer that the statute was repealed or invent a checkbox from that abbreviated layout. | Use the actual legal condition and confirm the filing path for a private claim. |
| State exemption and municipal exemption | The county statute carries specified state exemptions into its tax. A municipal tax has its own authority and exact exemption terms; state exemption status does not automatically decide every city layer. | A zero on one tax line is not necessarily a zero on all lines. |
Work through the facts
A clean state-tax calculation
An Illinois home transfers for a taxable value of $325,000. The question asks only for the state real estate transfer tax and gives no exemption.
- $325,000 divided by $500 equals 650 units.
- There is no fractional unit to round up.
- Multiply 650 units by the current state rate of $0.50.
- Do not add a county or municipal layer when the question asks only for state tax.
Answer: The Illinois state transfer tax is $325.
The half-unit that must go up
A taxable Illinois transfer has a value of $248,750. No exemption or mortgage adjustment applies.
- $248,750 divided by $500 equals 497.5 units.
- The statute taxes each $500 or fraction of $500.
- Round 497.5 up to 498 taxable units.
- Multiply 498 by $0.50.
Answer: The state transfer tax is $249.
The subject-to mortgage
A deed reports full consideration of $400,000 and states that the property transfers subject to an existing $150,000 mortgage that remains outstanding. No other adjustment applies.
- Begin with the $400,000 full actual consideration.
- The deed contains the required subject-to statement.
- Subtract the $150,000 outstanding mortgage to reach a $250,000 taxable base.
- $250,000 divided by $500 equals 500 units.
- Multiply 500 by $0.50.
Answer: The Illinois state transfer tax is $250.
The mortgage that gets paid off
A seller owes $150,000 on a mortgage. At a $400,000 sale closing, the debt will be paid and released. The deed does not state that the buyer takes the property subject to that mortgage.
- A seller payoff is a use of sale proceeds, not automatically a transfer-tax deduction.
- The mortgage will not remain against the transferred interest.
- The transferring document lacks the statutory subject-to condition.
- Use the full $400,000 taxable value on the supplied facts.
- $400,000 divided by $500 is 800 units, multiplied by $0.50.
Answer: The state tax is $400. Do not deduct the ordinary seller payoff.
State plus county
A question states that a taxable $325,000 transfer is subject to both the Illinois state tax and the county tax authorized at 25 cents per $500. No municipal tax applies.
- The taxable value creates 650 units.
- State tax is 650 multiplied by $0.50, or $325.
- County tax is 650 multiplied by $0.25, or $162.50.
- The two layers are cumulative on the stated facts.
- Add $325 and $162.50.
Answer: The combined state and county transfer tax is $487.50.
An exchange with a taxable difference
Two owners actually exchange Illinois real estate. One also pays the other $20,250 to equalize the values. The question says subsection (k) applies and asks for state tax on the money difference.
- The value exchanged in kind receives the subsection (k) treatment.
- The money difference is not exempt under that subsection.
- $20,250 divided by $500 equals 40.5 units.
- Round up to 41 units and multiply by $0.50.
- The exchange still requires the declaration even though the exchanged real estate is exempt.
Answer: The state tax on the money difference is $20.50, and PTAX-203 is still required.
Combine the two stated layers after the ceiling
A positive taxable value of $248,750 is stipulated to be subject to the state $0.50 and county $0.25 rates per $500 or fraction, on the same base. No exemption, other adjustment or municipal tax applies.
- $248,750 / $500 = 497.5, so count 498 units.
- State tax:498 x $0.50 = $249. County tax:498 x $0.25 = $124.50.
- Add $249 + $124.50 = $373.50. A direct 0.15% calculation on the unrounded value would skip the required unit ceiling.
Answer: The stated state-and-county total is $373.50; the state component alone is $249.
Use supported adjustments without double counting
For an exercise, full actual consideration on Line 11 is $400,000, including $10,000 of genuine personal property and a qualifying $150,000 outstanding mortgage. The transferring document expressly states the subject-to condition. No repair credit, exchange, exemption or other adjustment applies. The question asks for state tax only.
- Line 13: $400,000 -$10,000 = $390,000.
- Subtract the qualified $150,000 mortgage once to reach $240,000.
- $240,000 / $500 = 480 units;480 x $0.50 = $240.
- A buyer's new loan or a seller payoff would not substitute for the stipulated remaining-mortgage condition.
Answer: The stated taxable base is $240,000 and state tax is $240.
Keep the Chicago local portions separate
Use a $400,000 transfer price solely for the City of Chicago's stated City and CTA portions. Assume the transfer is taxable under both local portions, with no exemption, deduction, credit or refund. Exclude state and county taxes and every other closing cost.
- $400,000 / $500 = 800 units.
- The City portion is 800 x $3.75 = $3,000; the CTA portion is 800 x $1.50 = $1,200.
- The local total is $4,200. The city guide generally assigns the City portion to the buyer and CTA portion to the seller.
- These local figures do not include state or county tax or approve a private payer allocation or taxable base.
Answer: The stated Chicago local total is $4,200, comprising $3,000 City and $1,200 CTA.
Compare fair-market-value percentages, not votes
Assume an entity qualifies as a real estate entity and all ownership interests have a combined fair market value of $2,000,000. Compare isolated transfers of interests worth $1,000,000 and $1,020,000. No related transfer or other taxable-interest fact changes this threshold exercise.
- $1,000,000 / $2,000,000 = 50%; that is not more than 50%.
- $1,020,000 / $2,000,000 = 51%; that exceeds 50%.
- This exercise isolates the controlling-interest threshold. It does not establish an exemption, tax base or absence of every other possible tax.
Answer: The 51% transfer meets this stated controlling-interest threshold; the isolated 50% transfer does not meet this greater-than threshold.
Follow the monetary lines as well as the unit ceiling
For an instruction-only PTAX-203 exercise, actual Line 11 input is $400,000.10 and genuine included personal property for Line 12 a is $500.05. No exemption, exchange, mortgage or other adjustment applies. Follow the form's stated rounding of each monetary input to the next highest whole dollar before using the entered lines.
- The entered Line 11 is $400,001 and Line 12 a is $501.
- The entered difference is $400,001 -$501 = $399,500.
- $399,500 / $500 = 799 units, so state tax is 799 x $0.50 = $399.50.
- Subtracting the unrounded cents and taxing that raw result would not follow this stipulated sequence. This is not approval of an actual return or a personal-property value.
Answer: The stated form-sequence result is $399.50 state tax; distinguish monetary-line rounding from the $500-unit ceiling.
The earlier filing event controls
Assume the transfer is effected Monday, October 5, 2026. For this exercise, business days are Monday through Friday, no relevant day is a holiday and no other rule changes the count. Compare File A, presented for recordation Tuesday, October 6, with File B, for which nothing is presented before the three-business-day point. All other filing conditions are assumed.
- The three following business days are Tuesday 6, Wednesday 7 and Thursday 8.
- File A reaches the presentation event earlier, so its declaration is required at that Tuesday presentation under the stated rule.
- File B cannot postpone the declaration indefinitely merely by remaining unrecorded; the stipulated three-business-day point is Thursday, October 8.
- The individual transfer rule is not the recorder's separate monthly remittance deadline, and these dates do not approve a private filing.
Answer: The stipulated earlier event is Tuesday, October 6 for File A; the stated three-business-day point for File B is Thursday, October 8.
Mistakes to avoid
- $0.75 per $500 must be the Illinois state rate The state rate is $0.50. The extra $0.25 can be the county layer; municipal tax can add another amount.
- Round a fractional $500 unit to the nearest whole number Any fraction counts as a whole unit. Apply the ceiling, including a tiny fraction just above a boundary.
- Subtract every mortgage paid on the closing statement The qualified exclusion concerns an outstanding mortgage supported by the transferring document's subject-to statement, not every debt paid from proceeds.
- Five percent is the largest permitted residential personal-property deduction It is a stated itemization trigger, not a value cap or permission to fabricate an allocation.
- A federal Section 1031 label automatically exempts every state transfer tax Actual simultaneous-exchange treatment and a deferred exchange have different form consequences. A money difference under (k) is not exempt.
- A quitclaim, family relationship or no cash automatically proves exemption Use the exact statutory facts and full actual consideration, including relevant noncash value and obligations.
- Every tax exemption removes PTAX-203 Declaration rules survive in specified cases, with actual exceptions such as the stated (b)/(e) overlap rule.
- The current printed form has an (m) checkbox Printed Line 16 shows (b) and (k). Do not invent a box or erase the statutory (m) filing condition.
- Every sale over $1 million needs PTAX-203-A The trigger also requires one of the listed current-use categories. An apartment building over 6 units is included.
- Fifty percent of votes always means a controlling interest The state definition uses more than 50% of fair market value of all ownership or beneficial interests.
- A declaration can always wait until the deed is recorded Section 31-25 uses the earlier of recording presentation and 3 business days after the transfer is effected.
- Paper state revenue stamps remain an unrestricted 2026 option The statutory phaseout date has passed. Electronic stamps or alternative indicia are required thereafter; other paper documents are a separate issue.
- A seller always pays every Illinois transfer-tax layer Identify the tax, actual legal payer rule and contractual economic allocation. The Chicago City and CTA portions generally have different responsible parties.
- A proposed rate or closing custom overrides the operative law Use the enacted provision and applicable jurisdiction. A private agreement does not waive a taxing authority's legal rights.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. A taxable Illinois transfer has a value of $250,001. What is the state transfer tax?
- $250
- $251
- $250.50
- $250.01
Show answer and explanation
Answer: C. $250.50
$250,001 divided by $500 is 500.002 units. The fraction requires 501 units, and 501 multiplied by $0.50 equals $250.50.
2. Which fact permits an outstanding mortgage to be excluded from the Illinois transfer-tax base?
- The transferring document states the transfer is subject to it
- The parties privately expect a mortgage to remain, but the transferring document does not state the subject-to condition
- The seller plans to pay it at closing
- The buyer obtains a new loan for the same amount
Show answer and explanation
Answer: A. The transferring document states the transfer is subject to it
Section 31-10 ties the exclusion to subject-to language in the transferring document and the amount remaining outstanding at transfer.
3. Which transaction can be subject to Illinois transfer tax even without a deed conveying the property?
- An isolated transfer of exactly 50% of the fair market value of a corporate real estate entity, with no other related or taxable-interest transfer facts
- A 20-year ground lease with no renewal or extension options and no other Article 31 interest-transfer facts
- A sale of more than 50% of the ownership value of a qualifying real estate entity
- An isolated transfer of 51% of voting rights representing only 40% of the fair market value of a corporate real estate entity, with no other taxable-interest or related-transfer facts
Show answer and explanation
Answer: C. A sale of more than 50% of the ownership value of a qualifying real estate entity
A controlling interest is more than 50% of the fair market value of ownership or beneficial interests in a real estate entity. Its transfer can be taxable under Article 31.
4. Which Illinois transfer-tax exemption still generally requires a declaration?
- A tax deed under subsection (f)
- An actual exchange under subsection (k)
- A debt-securing instrument under subsection (c)
- A release of security under subsection (g)
Show answer and explanation
Answer: B. An actual exchange under subsection (k)
Section 31-45 expressly preserves declaration filing for subsection (k) exchanges. Money or money's worth paid as a difference is not exempt from tax.
5. A question gives 650 taxable $500 units and says both state and authorized county taxes apply. What is the combined tax before any municipal layer?
- $487.50
- $325
- $162.50
- $650
Show answer and explanation
Answer: A. $487.50
State tax is 650 times $0.50, or $325. County tax is 650 times $0.25, or $162.50. Their sum is $487.50.
6. A transfer uses the same taxable $500 units for a $0.50 state layer and an applicable $0.25 county layer. What does the combined $0.75 represent?
- State and county taxes together, before any applicable municipal layer
- A substitute for the $500 ceiling
- Every possible municipal tax already included
- A $0.75 state tax alone
Show answer and explanation
Answer: A. State and county taxes together, before any applicable municipal layer
Add the two specified rates only because they apply to the same units. The state component remains $0.50, and local rules and exemptions remain separate.
7. A genuine residential personal-property allocation exceeds 5% of Line 11, excluding mobile-home value for that comparison. What does the stated threshold trigger?
- Automatic exemption from all transfer taxes
- The specified itemized list with values, not a 5% deduction cap
- Permission to increase the allocation without evidence
- Automatic denial of every personal-property deduction
Show answer and explanation
Answer: B. The specified itemized list with values, not a 5% deduction cap
The instructions require supporting itemization above that threshold. The underlying items and values still need to be genuine and correctly classified.
8. Line 11 is $1,200,000 and the property's current use is an apartment building with 7 units. Does the stated PTAX-203-A trigger apply?
- Yes, solely because every sale over $1 million requires it
- No, because only intended use matters
- No, because apartments are always excluded
- Yes; the amount is over $1 million and the listed over 6-unit apartment category applies
Show answer and explanation
Answer: D. Yes; the amount is over $1 million and the listed over 6-unit apartment category applies
The form uses both price and listed CURRENT use. Do not summarize the trigger as every expensive sale or only nonresidential buildings.
9. Assume no noncash consideration, debt or other fact changes the stated actual consideration. Which comparison correctly applies only Section 31-45(e)'s amount test?
- A quitclaim label alone satisfies the test
- $100 and less always satisfy the amount test
- Every no-cash transfer is exempt regardless of assumed debt
- $99.99 is below $100; exactly $100 is not below $100
Show answer and explanation
Answer: D. $99.99 is below $100; exactly $100 is not below $100
The statute says less than $100, not $100 or less. Use actual qualifying facts before any presentation rounding; another exemption could have its own conditions.
10. What does the state revenue-stamp rule require after December 31, 2025?
- Every paper deed and every paper form is prohibited
- Counties issue electronic revenue stamps or alternative indicia
- No transfer declaration is ever required
- Paper state stamps remain the only permissible evidence
Show answer and explanation
Answer: B. Counties issue electronic revenue stamps or alternative indicia
The state paper-stamp phaseout does not abolish declarations or all paper documents, and it does not prove that every individual must use the same MyDec workflow.
11. The current instructions stipulate that a transfer qualifies under BOTH Section 31-45(b) and (e). Which described filing treatment applies?
- Select (e); the stated rule removes the declaration and supplement requirement while retaining the instrument notation
- Always select (b) and file regardless of the note
- Invent a new (m) checkbox
- Use no exemption notation anywhere
Show answer and explanation
Answer: A. Select (e); the stated rule removes the declaration and supplement requirement while retaining the instrument notation
The current instructions expressly address this overlap. Do not turn the usual (b) declaration rule into an absolute with no stated exceptions.
12. Assume a $400,000 Chicago transfer is taxable under both the $3.75 City and $1.50 CTA portions per $500, with no adjustment. Excluding state and county layers, what local total results?
- $1,200
- $3,000
- $4,800
- $4,200
Show answer and explanation
Answer: D. $4,200
There are 800 units:800 x $3.75 = $3,000 and 800 x $1.50 = $1,200. The local total is $4,200, not an all-government or all-closing-cost total.
13. For an isolated transfer in a stipulated qualifying real estate entity, does exactly 50% of the fair market value of all interests meet the more-than 50% controlling-interest threshold by itself?
- Yes, because the rule is 50% or more
- Yes, if those interests carry only 40% of voting rights
- No; exactly 50% does not exceed 50%
- No, because controlling-interest transfers can never be taxed
Show answer and explanation
Answer: C. No; exactly 50% does not exceed 50%
The threshold is strict and based on fair market value, not an interchangeable voting percentage. Other related transfers or taxable interests require separate analysis.
14. Can property in a deferred Section 1031 exchange automatically be entered as the simultaneous-exchange deduction on PTAX-203 Line 14?
- No actual simultaneous exchange can ever receive the listed treatment
- Yes, because every federal exchange eliminates every state transfer tax
- Yes, even when no other real estate passes between the parties
- No; the instructions reserve that line for the stated simultaneous exchange and exclude the deferred-exchange property value
Show answer and explanation
Answer: D. No; the instructions reserve that line for the stated simultaneous exchange and exclude the deferred-exchange property value
Federal income-tax terminology is not a blanket state transfer-tax exemption. Follow the actual transaction and the specific form instruction.
15. For this instruction-only exercise, a $400,000 price includes a documented $5,000 credit against the price for property repairs, with no other adjustment. What amount follows the stated Line 11 definition?
- $5,000
- $395,000
- $400,000
- $405,000
Show answer and explanation
Answer: B. $395,000
The instructions exclude the specified credit or refund for improvements or repairs from full actual consideration. This does not make every seller closing-cost credit deductible.
16. Does the statewide electronic-stamp requirement prove that every individual must enter a declaration through MyDec and can never use a paper form?
- No; the actual county workflow and declaration instructions are separate from the stamp phaseout
- Yes, because every paper deed was abolished
- Yes, because the current IDOR page says all counties use one identical interface
- Yes, because a stamp and declaration are identical
Show answer and explanation
Answer: A. No; the actual county workflow and declaration instructions are separate from the stamp phaseout
The current IDOR page still distinguishes counties using MyDec from the fill-in form for counties not using it. That does not change the statutory electronic-stamp or alternative-indicia requirement.
17. A ground lease provides 20 years plus a 10-year renewal option. Is that enough for the 30-or-more-year term element of the specified beneficial-interest definition?
- Yes, which alone proves the exact tax due and every filing condition
- No, because options must always be ignored
- Yes; include all renewal or extension options when testing that element
- No, because every ground lease is exempt
Show answer and explanation
Answer: C. Yes; include all renewal or extension options when testing that element
The combined stated term is 30 years. This meets that term element, not every other taxable-transfer, value, exemption or filing condition.
18. Line 11 is exactly $1,000,000 and the current-use category is office. Does that amount meet the stated OVER-$1 million price element for PTAX-203-A?
- Yes, because intended residential use controls
- Yes, because over means equal to or greater
- No; exactly $1 million is not over $1 million
- No, because offices are never among the listed categories
Show answer and explanation
Answer: C. No; exactly $1 million is not over $1 million
The form uses over $1 million AND a listed current-use category. This amount does not meet that price element; other applicable filing obligations remain separate.
19. Section 31-45(m) retains declaration filing for its qualified HOME-program transfers, while the current printed Line 16 shows only (b) and (k). Which conclusion is supported?
- Do not invent a checkbox or erase the statutory condition; confirm the actual filing path for a qualified private claim
- The statutory (m) condition was automatically repealed by the abbreviated form
- The form has a printed (m) box that must be checked
- The program is necessarily open to every applicant in 2026
Show answer and explanation
Answer: A. Do not invent a checkbox or erase the statutory condition; confirm the actual filing path for a qualified private claim
A form abbreviation does not establish repeal, program availability or transaction eligibility. The stated statutory filing condition and current private filing workflow are separate questions.
20. In a stipulated PTAX-203 calculation, rounded Line 11 is $400,001 and rounded Line 12 a is $501. There is no other deduction or exemption. What STATE tax follows the form's $500-unit ceiling?
- $399.75
- $399.50
- $399
- $400
Show answer and explanation
Answer: B. $399.50
The entered difference is $399,500, creating 799 units. Multiply 799 by $0.50 to obtain $399.50. State tax is separate from any county or municipal layer.
Common questions
Is Illinois real estate transfer tax 50 cents or 75 cents per $500?
The state rate is $0.50 for each $500 of taxable value or fraction. When an applicable county layer adds $0.25 on the same units, the combined amount is $0.75 before municipal tax. Do not describe that combined rate as the state rate alone. A proposed rate, shorthand percentage or private closing estimate does not replace the enacted provision and actual location-specific rules.
How do I calculate the Illinois state tax?
For a positive taxable base, divide by $500, count any fractional unit as a whole unit, then multiply by $0.50. At $250,001, there are 500.002 units, so use 501 and obtain $250.50. The $1 per $1,000 shorthand can miss a fraction. If completing PTAX-203, also follow its separate whole-dollar rounding instructions for Lines 11 through 18; do not silently substitute a raw-cent calculation for the specified form sequence.
Can I subtract the seller's mortgage or the buyer's new loan?
Only the qualified remaining-mortgage adjustment applies. The transferring document must state that the transfer is subject to the mortgage, and use the amount remaining outstanding at transfer. Full actual consideration includes the specified remaining mortgage before the supported subtraction. An ordinary seller payoff and release, or a new buyer loan, does not by itself satisfy that subject-to condition. Do not automatically use the same deduction for every municipal layer.
What belongs in full consideration and the personal-property deduction?
Follow the actual form instructions: include the specified consideration, simultaneous-exchange value and remaining mortgage, and handle the stated repair or improvement credit under its rule. Deduct only genuine included personal property, not invented values or attached components relabelled to reduce tax. The residential greater-than 5% itemization trigger excludes mobile-home value for that comparison; the nonresidential trigger is greater than 25%. Those are documentation triggers, not deduction ceilings. Mobile homes and particular items have their own classification conditions.
Who pays Illinois transfer taxes, the buyer or seller?
Identify the specific tax. The General Assembly's 2026 Tax Handbook describes the state transfer tax as a tax on sellers; a closing agreement can allocate its economic cost without waiving statutory collection rights. Local rules differ. Chicago's official guide generally assigns its $3.75 City portion to the buyer and $1.50 CTA portion to the seller, each per $500 or fraction. Do not apply that city split throughout Illinois or assume custom overrides an actual legal payer rule.
How much is Chicago's local transfer tax?
The identified city guide states $3.75 per $500 or fraction for the City portion and $1.50 for the CTA portion, totalling $5.25 per $500 before state and county taxes. On a stipulated taxable $400,000 local base with no adjustment, those portions are $3,000 and $1,200. Actual exemptions, deductions, credits, refunds and payer rules need their own review. The example is not an all-government tax total or a full closing-cost estimate.
What is PTAX-203, and is it the same as a revenue stamp?
PTAX-203 declares transaction and property facts for tax administration and assessment information. A stamp or approved indicia evidences payment; a supplement can add required information or an alternative calculation. The buyer and seller or their agents, and the preparer, have the stated signature and certification responsibilities. Neither a tax calculation nor a form label proves the complete filing or recording requirements have been met.
Does an exempt transfer still need a declaration?
Sometimes. The statute preserves declaration filing for its qualified (b), (k) and (m) cases, with actual conditions and exceptions. Subsection (b) has a specified VA-grantee foreclosure exception, and the current instructions say to select (e) when a transfer qualifies under both (b) and (e), with an exemption notation rather than the declaration or supplemental information. Subsection (k) actual exchanges retain filing, and a money difference is not exempt. Match the real facts; no tax does not automatically mean no form.
Are family gifts, quitclaims or transfers for $100 automatically exempt?
No label alone resolves the exemption. Section 31-45(e) uses actual consideration less than $100, so exactly $100 does not meet that amount test. Consider noncash value, relevant obligations and all actual facts rather than just cash handed over. A quitclaim is a deed form, not a tax exemption. Another subsection can have different conditions, and an exemption from the state or county tax does not automatically exempt a municipal layer.
When is PTAX-203-A required?
The listed trigger combines Line 11 over $1 million with one of the specified CURRENT-use categories: apartment building over 6 units, office, retail establishment, commercial building, industrial building or other. It is not every transfer over $1 million, not based only on intended use, and not limited to properties casually described as nonresidential. An apartment building with 7 units falls within the stated category. Follow any other applicable filing requirements separately.
When do I use PTAX-203-B?
Follow the current instruction for the actual instrument and transfer. The instructions direct its use for the stated instruments other than deeds or trust documents, and the form specifically directs a beneficial-interest transfer to the supplemental calculation. When filing the applicable PTAX-203-B, do not also complete Step 2 where the instructions say to omit it. This guide does not supply a completed supplement or approve a private instrument classification.
Can an unrecorded entity or ground-lease transfer be taxable?
Yes, if the defined taxable interest and other conditions apply. A controlling interest uses more than 50% of the fair market value of all ownership or beneficial interests in a qualifying real estate entity, not simply a voting count. The ground-lease limb includes a term of 30 or more years with all renewal or extension options included, even if some term has expired. Related transactions and the actual interest matter; recording is not a universal escape from the tax.
Does a Section 1031 exchange eliminate Illinois transfer tax?
Do not equate federal income-tax treatment with every state or municipal transfer-tax rule. Subsection (k) addresses an actual exchange, preserves declaration filing and does not exempt a money difference or money's worth paid between the parties. The form's Line 14 deduction is for the stated simultaneous exchange and excludes property involved in a deferred Section 1031 exchange. Local taxes require their own analysis.
What practice score proves readiness for transfer-tax questions?
No validated cutoff or pass probability is established for this original set. Explain the interest, actual consideration, qualifying adjustment, exemption and declaration decision before counting units. Label the government and show the ceiling. Then try a changed value or filing scenario after a delay. These questions are original teaching exercises, not recalled PSI questions, and the whole state Laws allocation does not predict a transfer-tax quota.
When is the transfer declaration due if no deed is recorded?
Section 31-25 uses presentation for recordation OR within 3 business days after the transfer is effected, whichever is earlier. A defined interest can transfer without recording, so do not assume the deadline disappears until a document is recorded. The required signatures and transaction facts still matter. A sample weekday count must state its business-day and holiday assumptions; no private transfer date, service method or filing is approved here.
Can I still use paper state stamps or a paper PTAX-203 in 2026?
Separate those questions. Section 31-15 required paper state revenue stamps to be phased out by December 31, 2025, followed by electronic stamps or alternative indicia in all counties. That is not a ban on paper deeds or every paper declaration. The current IDOR page distinguishes the fill-in form for counties not using MyDec from the MyDec workflow. Check the actual county process rather than assuming every individual must create the same online account or that a city has no separate requirements.
Why does the statute mention exemption (m) when Line 16 shows (b) and (k)?
The printed R-10/24 form is abbreviated. Section 31-45(m) retains a declaration requirement for its qualified principal-residence HOME-program transfers; the form's two printed boxes do not by themselves repeal that condition. Do not invent an (m) box or use this example as proof that a program is currently open, funded or available to a particular applicant. A private qualifying claim needs confirmation of its current filing path and supporting facts.
What makes an entity a real estate entity for the controlling-interest rule?
The definition concerns an entity that exists or acts substantially to hold real property or a beneficial interest directly or indirectly. It also supplies a rebuttable presumption when real-property fair market value is greater than 75% of the total fair market value of all assets, without deducting mortgages, liens or encumbrances for that comparison. That is not a debt-net equity ratio, an irrebuttable rule or the only way an entity can qualify. The separate controlling-interest threshold uses more than 50% of the fair market value of all ownership or beneficial interests.
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Official sources and scope
Reviewed October 29, 2026 using the identified primary sources. Research spans October 28 and 29; fresh readings and earlier actual readings have separate bounds. IDOR's current linked form and instructions carry revision R-10/24. The City of Chicago guide and selected Cook County code text were read in official or publisher indexes before their direct requests returned 403; those blocks were not retried or bypassed. No private transfer, tax exemption, payer allocation, form, deadline or payment is approved here.
- PSI Illinois booklet, June 24, 2026: state III.C and III.F
- 35 ILCS 200/31-5: transfer value, interests and revenue-stamp definitions
- 35 ILCS 200/31-10: state rate, scope and subject-to exclusion
- 55 ILCS 5/5-1031: county tax and exemption links
- 35 ILCS 200/31-45: transfer exemptions and filing qualifications
- IDOR PTAX-203 instructions, revised October 2024
- IDOR Form PTAX-203 and instructions, R-10/24
- 35 ILCS 200/31-25: declaration timing and signatures
- 35 ILCS 200/31-15: 2026 electronic stamps or alternative indicia
- 65 ILCS 5/8-3-19: municipal authority and qualifications
- IDOR: transfer declarations and MyDec
- Chicago Finance: City and CTA transfer-tax portions
- Cook County Code section74-102: transfer tax
- Illinois General Assembly 2026 Tax Handbook: transfer-tax summary
- 86 IAC Part120: selected consideration and exchange provisions
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.