Are you selling a home in Monroe County and wondering what those transfer tax “stamps” are on your closing statement? You are not alone. The cost is usually modest, but you want to budget correctly and avoid last‑minute surprises. In this guide, you will learn what Illinois transfer tax stamps are, who typically pays, how to estimate your costs, and the exact steps to confirm Monroe County specifics. Let’s dive in.
Transfer tax stamps explained
A real estate transfer tax is a charge collected when ownership changes hands and the deed is recorded. In Illinois, the state-level transfer tax applies to most sales and is based on the total price shown on the deed. Your title company or attorney usually buys the stamps and remits the tax when the deed is recorded.
The Illinois state transfer tax rate is $0.50 per $500 of consideration, which equals $1.00 per $1,000 of sale price. You can calculate it two ways:
- Method A: (Sale price ÷ 500) × $0.50
- Method B: (Sale price ÷ 1,000) × $1.00
For example, if you sell for $300,000, the Illinois state transfer tax is $300. Exemptions exist in limited cases, like certain transfers between spouses or to government entities, but you should have your title company confirm any exemption before you count on it.
Local add-on taxes in Monroe County
Some counties or municipalities in Illinois add their own transfer taxes on top of the state tax. Rates and rules vary by local ordinance. If a local transfer tax applies, both the state and local taxes must be paid at recording unless an exemption applies.
Do not assume either way for Monroe County or your town. To verify whether any county or municipal transfer tax applies in Monroe County, contact:
- Monroe County Recorder of Deeds for recording requirements and stamp rules
- Monroe County Clerk or Treasurer for any county-level tax ordinances
- City or village offices for Columbia and Waterloo for municipal transfer tax ordinances
- Your title company or closing attorney, who will confirm and collect any required stamps
If a local tax applies, ask whether it uses the sale price as the base and how the rate is stated, such as per $500 or per $1,000.
Who pays and how it appears at closing
The purchase contract controls who pays transfer taxes. In many Illinois markets it is common for the seller to pay, but this is negotiable and can vary by contract and local custom. Review your signed contract so you and your title company follow the correct instruction.
At closing, your title company calculates the taxes and obtains any required stamps so the deed can be recorded. On your seller closing statement, transfer taxes appear as separate line items, often labeled state transfer tax and, if applicable, municipal transfer tax. These charges reduce your net proceeds unless your contract assigns them to the buyer.
Payment happens at or just before recording because stamps are required to record the deed. Delays in confirming local taxes or preparing funds can delay recording and the final release of your proceeds.
Estimate your costs
When you budget your net, consider these components that relate to transfer and recording:
- Illinois state transfer tax
- Any county or municipal transfer tax, if applicable
- Recording fees for the deed and for mortgage release documents
The state tax is straightforward:
- State tax = (Sale price ÷ 1,000) × $1.00
Sample state-only numbers:
- $150,000 sale → $150 state transfer tax
- $300,000 sale → $300 state transfer tax
- $500,000 sale → $500 state transfer tax
If a local tax also applied at the same rate as the state, your total would double. For example, on a $300,000 sale, a hypothetical local tax of $1 per $1,000 would add $300, for $600 total transfer tax. This is an example only. Always verify Monroe County and municipal specifics with your title company and local offices.
Recording fees are separate from transfer taxes. Single-deed recording fees in Illinois often range from about $20 to $150 depending on the county and number of pages. Releases for paid-off mortgages add more recording charges. Ask the Monroe County Recorder for the current fee schedule.
A practical tip: the state tax is often a few hundred dollars for many Monroe County homes. The total can go higher if a local transfer tax exists or if you have multiple mortgages to release. Request an itemized estimate early so you can plan your proceeds with confidence.
Seller checklist for Monroe County
Use this checklist with your agent and title company:
- Request a preliminary, itemized seller settlement estimate that shows:
- State transfer tax amount with the calculation
- Any county or municipal transfer tax, if applicable, with the ordinance source
- Recorder fees for the deed and any mortgage releases
- Title insurance premium and closing agent fee
- Lien payoffs, broker commission, tax prorations, HOA fees, and any other credits or debits
- Confirm who pays transfer taxes per your contract so the title company collects from the correct party.
- Verify local taxes by contacting the Monroe County Recorder and Clerk/Treasurer, and municipal clerks in Columbia and Waterloo. Ask your title company to cite any ordinance if a local tax is included.
- Ask the title company when they will record the deed and release proceeds, and whether any funds will be held in escrow after closing.
- Gather documents now:
- Current mortgage payoff statement(s) with estimated payoff date
- Any prior deed or recorded documents requested by title
- HOA contact and payoff/estoppel details if applicable
- If you think an exemption might apply, provide supporting documents early and have the title company confirm eligibility.
Next steps
You do not need to become a transfer tax expert to sell with confidence. Use the simple state formula, verify any local add-ons, and get an itemized estimate from your title company as soon as you list. That keeps your timeline smooth and your net proceeds clear.
If you want local guidance and a precise seller net sheet tailored to your home in Monroe County, reach out to Angi Laskowski for a quick consultation.
FAQs
How do Illinois transfer tax stamps work for home sales?
- Illinois charges a state transfer tax based on the sale price, collected at recording by your title company, and shown as a line item on your closing statement.
What is the Illinois state transfer tax rate and formula?
- The rate is $0.50 per $500, equal to $1 per $1,000. Calculate it as sale price ÷ 1,000 × $1.00.
Do Monroe County or my town add their own transfer tax?
- Some Illinois counties or municipalities do, so verify with the Monroe County Recorder, county Clerk/Treasurer, your city or village office, and your title company.
Who usually pays transfer taxes in Monroe County home sales?
- It depends on your contract. Sellers commonly pay, but the responsibility is negotiable and should be confirmed in your signed agreement.
When are transfer taxes paid and will they delay my closing?
- They are paid at or just before recording because stamps are required to record the deed; unresolved tax questions can delay recording and your proceeds.
How much should I budget for recording fees in addition to taxes?
- Recording fees vary by county and document count; a single deed often ranges about $20 to $150 in Illinois, with extra fees for mortgage releases.
Can my sale be exempt from Illinois transfer tax?
- Some transfers, like certain spousal or government transfers, may qualify, but exemptions are specific; have your title company confirm before you rely on one.
