Illinois laws and regulations topic guide

Illinois real estate transfer taxes

Transfer-tax questions look like simple multiplication until one phrase changes the base, adds a local layer, or preserves a declaration requirement despite an exemption. The reliable approach is to classify the transfer first, build the taxable value second, and touch the calculator only after those legal decisions are made.

Last updated: August 1, 2026

What does current Illinois authority require?

Short answer: Illinois taxes the privilege of transferring title to Illinois real estate, a taxable beneficial interest, or a controlling interest in a real estate entity. The current state rate is 50 cents for each $500 of taxable value or fraction of $500. Divide the taxable base by $500, round units up, and multiply by $0.50. If the transferring document states that the property remains subject to a mortgage, the outstanding mortgage can be excluded from the base. State, county, and municipal transfer taxes are separate layers, and a tax exemption does not always remove the PTAX-203 declaration requirement.

Official section: Illinois III.C: Transfer Taxes
Broker weight: Part of 25% of the Illinois state portion
Expected scored items: Additional Illinois Laws and Regulations accounts for about 10 of 40 state items

Illinois Real Estate Transfer Taxes for the Broker Exam exam weight
Official section	Broker weight	Expected scored items
Illinois III.C: Transfer Taxes	Part of 25% of the Illinois state portion	Additional Illinois Laws and Regulations accounts for about 10 of 40 state items

The PSI outline effective June 24, 2026 lists Transfer Taxes in Illinois III.C for broker candidates. This guide uses the enacted 50-cent state rate in effect on August 1, 2026. It does not substitute a proposed bill for current law, and it treats local rates as facts that must be supplied by the question or verified for the location.

Where is this tested on the Illinois outline?

Topic: Taxable transfer
What to know: Privilege of transfer, Illinois real estate, title, deed, beneficial interest, land trust, long-term ground lease, controlling interest, real estate entity, related transactions, direct transfer, indirect transfer, and unrecorded transfer
Best exam move: Identify what ownership changed before asking whether a deed was recorded.

Topic: State rate and $500 units
What to know: 50 cents, each $500, fraction of $500, taxable value, ceiling, exact multiple, partial unit, $1 per $1,000 shorthand, arithmetic order, and dollar result
Best exam move: Round the number of $500 units up, never to the nearest unit.

Topic: Full actual consideration
What to know: Sale price, actual amount paid, repair credit, simultaneous exchange, outstanding mortgage, personal property, other real estate, truthful allocation, real-estate value, declaration Line 11, and supporting detail
Best exam move: Start with full consideration, then make only the deductions supported by the form and statute.

Topic: Subject-to mortgage exclusion
What to know: Transferring document, states subject to mortgage, outstanding amount, time of transfer, Line 15, assumed loan, remains subject, seller payoff, new buyer financing, no automatic deduction, and tax base
Best exam move: Subtract an existing mortgage only when the transfer document contains the required subject-to statement.

Topic: Personal property and exchanges
What to know: Bill of sale, movable items, fixtures, attached improvements, residential five-percent support threshold, nonresidential 25-percent support threshold, simultaneous exchange, deferred Section 1031 exchange, money difference, and documentation
Best exam move: Separate genuine personal property and exchange value without inventing an allocation to reduce tax.

Topic: State, county, and municipal layers
What to know: State Article 31, county board authority, 25 cents per $500, home-rule municipality, referendum, local rate, buyer or seller responsibility, cumulative taxes, property location, ordinance, and closing statement
Best exam move: Calculate each stated layer independently, then add only the layers that apply to the property.

Topic: Transfer-tax exemptions
What to know: Government and charitable transfers, security instruments, corrective documents, consideration below $100, tax deed, release of security, partition, reorganization, parent-subsidiary transfer, exchange, foreclosure deed, deed in lieu, principal-residence program, and exact subsection
Best exam move: Match facts to a listed exemption instead of assuming every no-cash or family transfer is exempt.

Topic: Exchange exemption
What to know: Actual exchange, real estate, beneficial interests, money difference, money's worth, equal value, unequal value, taxable boot, subsection (k), declaration still required, and simultaneous transfer
Best exam move: Exempt the exchanged value but tax the qualifying money difference, then keep the declaration requirement.

Topic: PTAX-203 declaration
What to know: Property address, parcel identifying number, instrument, date, current and intended use, sale circumstances, consideration, personal property, mortgage, exemption, legal description, parties, preparer, signatures, certification, and penalties
Best exam move: Treat the declaration as a factual tax and assessment record, not a casual broker estimate.

Topic: Supplemental forms and MyDec
What to know: PTAX-203-A, nonresidential sale over $1 million, qualifying property use, PTAX-203-B, instrument other than deed or trust document, MyDec, participating county, electronic workflow, county recorder, and public search
Best exam move: Choose the base declaration and add the proper supplement when the instrument, price, and use require it.

Topic: Revenue stamps and recording
What to know: Payment evidence, revenue stamp, electronic indicia, alternative indicia, county recorder, filing, tax payment, exempt notation, declaration, no paper-only assumption, and pre-recording collection
Best exam move: Separate evidence of payment from the calculation and from the declaration filing decision.

Topic: Broker role at closing
What to know: Contract allocation, local custom, closing disclosure, title company, attorney, recorder, accurate facts, no tax advice, no false personal-property allocation, location verification, source date, and escalation
Best exam move: Apply supplied law and math on the exam, but refer transaction-specific tax and title conclusions to the closing professionals in practice.

Illinois Real Estate Transfer Taxes for the Broker Exam complete outline
Topic	What to know	Best exam move
Taxable transfer	Privilege of transfer, Illinois real estate, title, deed, beneficial interest, land trust, long-term ground lease, controlling interest, real estate entity, related transactions, direct transfer, indirect transfer, and unrecorded transfer	Identify what ownership changed before asking whether a deed was recorded.
State rate and $500 units	50 cents, each $500, fraction of $500, taxable value, ceiling, exact multiple, partial unit, $1 per $1,000 shorthand, arithmetic order, and dollar result	Round the number of $500 units up, never to the nearest unit.
Full actual consideration	Sale price, actual amount paid, repair credit, simultaneous exchange, outstanding mortgage, personal property, other real estate, truthful allocation, real-estate value, declaration Line 11, and supporting detail	Start with full consideration, then make only the deductions supported by the form and statute.
Subject-to mortgage exclusion	Transferring document, states subject to mortgage, outstanding amount, time of transfer, Line 15, assumed loan, remains subject, seller payoff, new buyer financing, no automatic deduction, and tax base	Subtract an existing mortgage only when the transfer document contains the required subject-to statement.
Personal property and exchanges	Bill of sale, movable items, fixtures, attached improvements, residential five-percent support threshold, nonresidential 25-percent support threshold, simultaneous exchange, deferred Section 1031 exchange, money difference, and documentation	Separate genuine personal property and exchange value without inventing an allocation to reduce tax.
State, county, and municipal layers	State Article 31, county board authority, 25 cents per $500, home-rule municipality, referendum, local rate, buyer or seller responsibility, cumulative taxes, property location, ordinance, and closing statement	Calculate each stated layer independently, then add only the layers that apply to the property.
Transfer-tax exemptions	Government and charitable transfers, security instruments, corrective documents, consideration below $100, tax deed, release of security, partition, reorganization, parent-subsidiary transfer, exchange, foreclosure deed, deed in lieu, principal-residence program, and exact subsection	Match facts to a listed exemption instead of assuming every no-cash or family transfer is exempt.
Exchange exemption	Actual exchange, real estate, beneficial interests, money difference, money's worth, equal value, unequal value, taxable boot, subsection (k), declaration still required, and simultaneous transfer	Exempt the exchanged value but tax the qualifying money difference, then keep the declaration requirement.
PTAX-203 declaration	Property address, parcel identifying number, instrument, date, current and intended use, sale circumstances, consideration, personal property, mortgage, exemption, legal description, parties, preparer, signatures, certification, and penalties	Treat the declaration as a factual tax and assessment record, not a casual broker estimate.
Supplemental forms and MyDec	PTAX-203-A, nonresidential sale over $1 million, qualifying property use, PTAX-203-B, instrument other than deed or trust document, MyDec, participating county, electronic workflow, county recorder, and public search	Choose the base declaration and add the proper supplement when the instrument, price, and use require it.
Revenue stamps and recording	Payment evidence, revenue stamp, electronic indicia, alternative indicia, county recorder, filing, tax payment, exempt notation, declaration, no paper-only assumption, and pre-recording collection	Separate evidence of payment from the calculation and from the declaration filing decision.
Broker role at closing	Contract allocation, local custom, closing disclosure, title company, attorney, recorder, accurate facts, no tax advice, no false personal-property allocation, location verification, source date, and escalation	Apply supplied law and math on the exam, but refer transaction-specific tax and title conclusions to the closing professionals in practice.

The STAMP method for Illinois transfer tax

Spot the interest transferred. Classify title, a beneficial interest, or a controlling interest in a real estate entity, including related transactions.
Total the full actual consideration. Start with the price and include the values the declaration requires before deductions.
Adjust only under an authorized rule. Separate bona fide personal property, qualifying exchanged real estate, and a mortgage supported by subject-to language in the transferring document.
Match a statutory exemption. Identify the exact subsection and then decide separately whether the declaration is still required.
Price each applicable layer. Divide the taxable base by $500, round units up, multiply by the state rate, and calculate stated county or municipal taxes separately.
Prepare the filing path. Use PTAX-203, any required supplement, MyDec when applicable, revenue stamps or approved indicia, and the proper recorder workflow.
Protect the record. Use truthful values, follow the contract and local ordinance for payer allocation, and send transaction-specific tax or legal conclusions to the appropriate professional.

Question: State rate
Current rule: $0.50 per $500 or fraction
Exam use: Use a ceiling for $500 units

Question: Exact shorthand
Current rule: $1 per $1,000
Exam use: Safe only after checking fractions

Question: County authority
Current rule: $0.25 per $500 or fraction
Exam use: Separate possible layer

Question: Taxable interests
Current rule: Title, beneficial interest, controlling interest
Exam use: Recording is not the only trigger

Question: Controlling interest
Current rule: More than 50% of ownership value
Exam use: Indirect entity transfer can be taxable

Question: Subject-to mortgage
Current rule: Excluded if transferring document states it
Exam use: Do not subtract an ordinary payoff

Question: Consideration below $100
Current rule: Listed exemption under 31-45(e)
Exam use: Use the statutory exemption

Question: Exchange
Current rule: Exchanged value exempt; money difference taxable
Exam use: Declaration still required

Question: PTAX-203-A
Current rule: Certain nonresidential sales over $1 million
Exam use: Supplement to PTAX-203

Question: PTAX-203-B
Current rule: Transfers by instruments other than deeds or trust documents
Exam use: Alternate supplemental calculation

Question: Revenue stamp
Current rule: Physical, electronic, or alternative approved indicia
Exam use: Evidence of payment

Illinois transfer-tax rules at a glance
Question	Current rule	Exam use
State rate	$0.50 per $500 or fraction	Use a ceiling for $500 units
Exact shorthand	$1 per $1,000	Safe only after checking fractions
County authority	$0.25 per $500 or fraction	Separate possible layer
Taxable interests	Title, beneficial interest, controlling interest	Recording is not the only trigger
Controlling interest	More than 50% of ownership value	Indirect entity transfer can be taxable
Subject-to mortgage	Excluded if transferring document states it	Do not subtract an ordinary payoff
Consideration below $100	Listed exemption under 31-45(e)	Use the statutory exemption
Exchange	Exchanged value exempt; money difference taxable	Declaration still required
PTAX-203-A	Certain nonresidential sales over $1 million	Supplement to PTAX-203
PTAX-203-B	Transfers by instruments other than deeds or trust documents	Alternate supplemental calculation
Revenue stamp	Physical, electronic, or alternative approved indicia	Evidence of payment

Which Illinois distinctions matter most?

Terms: Tax rate vs. tax base
Difference: 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.
Question cue: What value receives the rate?

Terms: $500 fraction vs. ordinary rounding
Difference: Any fraction of a $500 unit counts as a complete unit. Ordinary rounding could move 497.5 units down or treat it inconsistently, while the statute always requires the ceiling.
Question cue: Does any partial $500 remain?

Terms: Full consideration vs. taxable value
Difference: 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.
Question cue: Starting figure or amount ultimately taxed?

Terms: Subject-to mortgage vs. seller loan payoff
Difference: 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.
Question cue: Does the transfer document preserve the existing mortgage?

Terms: Real property vs. personal property
Difference: 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.
Question cue: Attached improvement or normally removed item?

Terms: Direct deed vs. indirect controlling-interest transfer
Difference: A deed transfers title directly. A sale of more than 50% of the ownership value of a qualifying real estate entity can transfer a controlling interest indirectly and still fall within Article 31.
Question cue: Was the property sold, or was the property-owning entity sold?

Terms: State tax vs. local tax
Difference: 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.
Question cue: Which government imposed this layer?

Terms: Tax exemption vs. declaration exemption
Difference: A transaction can owe no transfer tax yet still require PTAX-203. Subsections (b), (k), and (m) are the leading exam examples in the current form instructions.
Question cue: No tax, no form, or both?

Terms: Revenue stamp vs. PTAX-203
Difference: A revenue stamp or approved electronic indicia evidences tax payment. PTAX-203 reports transaction and property data. They serve related but different functions.
Question cue: Proof of payment or declaration of facts?

Terms: Transfer tax vs. property tax
Difference: 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.
Question cue: One transfer event or recurring ownership charge?

Illinois Real Estate Transfer Taxes for the Broker Exam tested distinctions
Terms	Difference	Question cue
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	Any fraction of a $500 unit counts as a complete unit. Ordinary rounding could move 497.5 units down or treat it inconsistently, while the statute always requires the ceiling.	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 sale of more than 50% of the ownership value of a qualifying real estate entity can transfer a controlling interest indirectly and still fall within Article 31.	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 transaction can owe no transfer tax yet still require PTAX-203. Subsections (b), (k), and (m) are the leading exam examples in the current form instructions.	No tax, no form, or both?
Revenue stamp vs. PTAX-203	A revenue stamp or approved electronic indicia evidences tax payment. PTAX-203 reports transaction and property data. They serve related but different functions.	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?

How does the Illinois rule apply?

A clean state-tax calculation

Scenario: 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

Scenario: 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

Scenario: 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

Scenario: 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

Scenario: 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

Scenario: 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.

Where do candidates misread the Illinois rule?

Trap: The 2026 Illinois state rate is 75 cents per $500.
Correction: That figure appeared in proposed legislation. The enacted rate reviewed on August 1, 2026 remains 50 cents per $500 or fraction.

Trap: Round taxable $500 units to the nearest whole number.
Correction: Every fraction of a $500 unit is taxable, so always round the unit count up.

Trap: Transfer tax applies only to a recorded deed.
Correction: Article 31 also reaches taxable beneficial-interest and controlling-interest transfers, including related transactions regardless of recording.

Trap: Subtract every mortgage shown on the closing statement.
Correction: The outstanding mortgage exclusion requires the transferring document to state that the property or interest transfers subject to the mortgage.

Trap: A seller's mortgage payoff reduces full consideration.
Correction: A payoff from sale proceeds does not by itself reduce the transfer-tax base. Distinguish it from a qualifying mortgage that remains subject to the transfer.

Trap: Everything sold with a house is real property.
Correction: Bona fide personal property can be separately reported, but fixtures and attached building components generally remain part of the real estate.

Trap: If no transfer tax is due, no declaration is required.
Correction: Some exemptions, especially subsections (b), (k), and (m), still require the declaration.

Trap: The state rate gives the total tax for every Illinois closing.
Correction: County and municipal transfer taxes can add separate layers. Use the property's location and the stated local rules.

Trap: The seller always pays all Illinois transfer taxes.
Correction: Use the contract and the applicable local ordinance. Do not replace a stated payer rule with custom or memory.

Trap: Revenue stamp means only an adhesive paper stamp.
Correction: Current Article 31 permits electronic or alternative approved indicia within the revenue-stamp definition.

Illinois Real Estate Transfer Taxes for the Broker Exam trap corrections
Trap	Correction
The 2026 Illinois state rate is 75 cents per $500.	That figure appeared in proposed legislation. The enacted rate reviewed on August 1, 2026 remains 50 cents per $500 or fraction.
Round taxable $500 units to the nearest whole number.	Every fraction of a $500 unit is taxable, so always round the unit count up.
Transfer tax applies only to a recorded deed.	Article 31 also reaches taxable beneficial-interest and controlling-interest transfers, including related transactions regardless of recording.
Subtract every mortgage shown on the closing statement.	The outstanding mortgage exclusion requires the transferring document to state that the property or interest transfers subject to the mortgage.
A seller's mortgage payoff reduces full consideration.	A payoff from sale proceeds does not by itself reduce the transfer-tax base. Distinguish it from a qualifying mortgage that remains subject to the transfer.
Everything sold with a house is real property.	Bona fide personal property can be separately reported, but fixtures and attached building components generally remain part of the real estate.
If no transfer tax is due, no declaration is required.	Some exemptions, especially subsections (b), (k), and (m), still require the declaration.
The state rate gives the total tax for every Illinois closing.	County and municipal transfer taxes can add separate layers. Use the property's location and the stated local rules.
The seller always pays all Illinois transfer taxes.	Use the contract and the applicable local ordinance. Do not replace a stated payer rule with custom or memory.
Revenue stamp means only an adhesive paper stamp.	Current Article 31 permits electronic or alternative approved indicia within the revenue-stamp definition.

Can you apply the rule to a fresh scenario?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. A taxable Illinois transfer has a value of $250,001. What is the state transfer tax?

$250
$250.01
$250.50
$251

Show answer and explanation

Answer: $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 seller plans to pay it at closing
The transferring document states the transfer is subject to it
The buyer obtains a new loan for the same amount
The mortgage appears on the seller's credit report

Show answer and explanation

Answer: 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?

A sale of more than 50% of the ownership value of a qualifying real estate entity
A six-month apartment lease
A property management agreement
A listing agreement

Show answer and explanation

Answer: 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)
A debt-securing instrument under subsection (c)
An actual exchange under subsection (k)
A release of security under subsection (g)

Show answer and explanation

Answer: 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?

$162.50
$325
$487.50
$650

Show answer and explanation

Answer: $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.

How should you review this Illinois topic?

Session: 1. Classify the transfer
Focus: Title, deed, beneficial interest, land trust, 30-year ground lease, controlling interest, real estate entity, related transactions, direct, indirect, and unrecorded
Proof you are ready: Classify 25 transactions before doing any tax arithmetic and explain why recording is not the only trigger.

Session: 2. Master state math
Focus: 50 cents, $500 unit, fraction, ceiling, taxable value, exact multiple, partial unit, $1 per $1,000 shorthand, and calculator sequence
Proof you are ready: Complete 30 state-tax calculations, including at least 15 values that are not multiples of $500, with 90% accuracy.

Session: 3. Build the tax base
Focus: Full consideration, personal property, fixtures, simultaneous exchange, subject-to mortgage, seller payoff, Line 11, Line 12a, Line 14, and Line 15
Proof you are ready: Reconstruct the taxable base in 20 scenarios and state the factual support for every subtraction.

Session: 4. Learn exemptions and filings
Focus: Section 31-45, subsection letters, government, security, correction, below $100, tax deed, partition, exchange, foreclosure, declaration exception, and exempt notation
Proof you are ready: Sort 25 transactions into taxable, tax-exempt with declaration, or tax-exempt without PTAX-203.

Session: 5. Add local layers
Focus: State, county, 25 cents, municipal, home rule, referendum, ordinance, property location, buyer, seller, contract allocation, cumulative amount, and no assumption
Proof you are ready: Calculate 15 multi-layer questions and label each rate by government before adding the totals.

Session: 6. Apply STAMP
Focus: Interest, consideration, adjustments, exemption, $500 ceiling, state rate, local layer, PTAX-203, supplement, MyDec, revenue stamps, and broker boundary
Proof you are ready: Score at least 90% on a fresh transfer-tax set and explain every answer in STAMP order without looking at the table.

Illinois Real Estate Transfer Taxes for the Broker Exam focused study plan
Session	Focus	Proof you are ready
1. Classify the transfer	Title, deed, beneficial interest, land trust, 30-year ground lease, controlling interest, real estate entity, related transactions, direct, indirect, and unrecorded	Classify 25 transactions before doing any tax arithmetic and explain why recording is not the only trigger.
2. Master state math	50 cents, $500 unit, fraction, ceiling, taxable value, exact multiple, partial unit, $1 per $1,000 shorthand, and calculator sequence	Complete 30 state-tax calculations, including at least 15 values that are not multiples of $500, with 90% accuracy.
3. Build the tax base	Full consideration, personal property, fixtures, simultaneous exchange, subject-to mortgage, seller payoff, Line 11, Line 12a, Line 14, and Line 15	Reconstruct the taxable base in 20 scenarios and state the factual support for every subtraction.
4. Learn exemptions and filings	Section 31-45, subsection letters, government, security, correction, below $100, tax deed, partition, exchange, foreclosure, declaration exception, and exempt notation	Sort 25 transactions into taxable, tax-exempt with declaration, or tax-exempt without PTAX-203.
5. Add local layers	State, county, 25 cents, municipal, home rule, referendum, ordinance, property location, buyer, seller, contract allocation, cumulative amount, and no assumption	Calculate 15 multi-layer questions and label each rate by government before adding the totals.
6. Apply STAMP	Interest, consideration, adjustments, exemption, $500 ceiling, state rate, local layer, PTAX-203, supplement, MyDec, revenue stamps, and broker boundary	Score at least 90% on a fresh transfer-tax set and explain every answer in STAMP order without looking at the table.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

Practice the Illinois rule in context

From concept to decision

Drill this topic, then review the explanation

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Questions students ask about Illinois Real Estate Transfer Taxes for the Broker Exam

What is the Illinois state real estate transfer tax rate?

As of August 1, 2026, Section 31-10 of the Property Tax Code imposes the state tax at 50 cents for each $500 of taxable value or fraction of $500. That equals $1 per $1,000 when the value is an exact multiple of $1,000. Because a fraction of a $500 unit counts as a full unit, calculate with a ceiling rather than ordinary rounding.

How do you calculate Illinois real estate transfer tax?

Determine the taxable value, divide it by $500, round the number of units up to the next whole unit, and multiply by 50 cents for the state tax. A taxable value of $248,750 creates 497.5 units, which becomes 498 units. The state tax is therefore $249. County or municipal transfer taxes, if applicable, are calculated separately under the governing local rule.

Is the Illinois transfer tax rate 50 cents or 75 cents per $500?

The enacted statewide rate is 50 cents per $500 or fraction as of August 1, 2026. A bill introduced in the 104th General Assembly proposed a different rate, but a proposal is not current law. Exam answers should follow the enacted Property Tax Code and the effective PSI outline, not a pending bill or an article describing proposed legislation.

Does Illinois transfer tax apply only when a deed is recorded?

No. Article 31 reaches the privilege of transferring Illinois real estate title, a taxable beneficial interest, or a controlling interest in a real estate entity. Since June 1, 2005, the tax can be due through one or more related transactions and regardless of whether a transfer document is recorded. The substance of the ownership transfer matters more than the paperwork label.

Can an outstanding mortgage reduce Illinois transfer tax?

Yes, but only under the stated statutory condition. If the transferring document states that the property or interest is transferred subject to a mortgage, the outstanding mortgage amount at the time of transfer is excluded from the tax base. The PTAX-203 instructions put the full consideration, including a mortgage that remains, on Line 11 and use Line 15 for the qualifying subject-to amount. Do not subtract every seller loan payoff automatically.

Who pays real estate transfer tax in Illinois?

Do not turn local custom into a statewide legal absolute. Article 31 imposes a tax on the privilege of transfer, while the contract and applicable local ordinance can allocate the economic cost between seller and buyer. Municipal referendum language can expressly identify buyer or seller responsibility. On an exam question, use the stated contract or ordinance facts instead of assuming the seller always pays every transfer tax.

Are Illinois county and municipal transfer taxes the same as the state tax?

No. They are separate layers. The Counties Code authorizes a county tax of 25 cents per $500 or fraction, while qualifying municipal transfer taxes operate under local authority and may use their own rates and payment rules. A state-only calculation does not establish the total due at a particular closing. Verify the property's county and municipality whenever the question asks for a combined amount.

Is every transfer-tax-exempt deed also exempt from Form PTAX-203?

No. Tax exemption and declaration filing are separate decisions. For example, Section 31-45 says qualifying government or charitable transfers under subsection (b), exchanges under subsection (k), and Home Ownership Made Easy transfers under subsection (m) remain subject to declaration filing. The current PTAX-203 instructions identify which exemption letters use a declaration and which may use an exemption notation on the instrument.

What is Form PTAX-203 used for?

PTAX-203 is the Illinois Real Estate Transfer Declaration used for deeds and trust documents when required. It reports parties, property, instrument, consideration, personal property, qualifying mortgage amount, exemption, legal description, and other sale facts. The buyer and seller or their agents, along with the preparer, certify the required information. MyDec handles electronic declaration workflows in participating counties.

Are these official Illinois real estate exam questions?

No. They are original study questions aligned to Transfer Taxes in Illinois III.C of the PSI broker outline effective June 24, 2026. The Illinois Property Tax Code, Counties Code, Municipal Code, and Illinois Department of Revenue PTAX-203 materials were reviewed through August 1, 2026.

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The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.

Editorial status

Checked against primary sources

The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.

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Illinois real estate transfer taxes

What does current Illinois authority require?

Where is this tested on the Illinois outline?

The STAMP method for Illinois transfer tax

Which Illinois distinctions matter most?

How does the Illinois rule apply?

A clean state-tax calculation

The half-unit that must go up

The subject-to mortgage

The mortgage that gets paid off

State plus county

An exchange with a taxable difference

Where do candidates misread the Illinois rule?

Can you apply the rule to a fresh scenario?

1. A taxable Illinois transfer has a value of $250,001. What is the state transfer tax?

2. Which fact permits an outstanding mortgage to be excluded from the Illinois transfer-tax base?

3. Which transaction can be subject to Illinois transfer tax even without a deed conveying the property?

4. Which Illinois transfer-tax exemption still generally requires a declaration?

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?

How should you review this Illinois topic?

Practice the Illinois rule in context

Drill this topic, then review the explanation

What should you study next?

Questions students ask about Illinois Real Estate Transfer Taxes for the Broker Exam

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