Closing in West Town and not sure what Chicago’s transfer taxes or MyDec mean for you? You are not alone. Between layered taxes and a few city-specific steps, small missed details can stall an otherwise smooth closing. In this guide you’ll learn who typically pays what, how MyDec works, and the Chicago items that most often cause last‑minute delays, plus a simple checklist to keep you on track. Let’s dive in.
Transfer tax basics in West Town
Chicago transfer taxes are layered. For a West Town property, you will likely see separate State, County, and City line items. Title companies and attorneys calculate these for you, but it helps to know the structure and the usual buyer versus seller split. A practical summary of these rates is available in the Attorneys’ Title Guaranty guide.
- Illinois (state) transfer tax: $0.50 per $500 of value (0.1%). See state and county rates explained.
- Cook County transfer tax: $0.25 per $500 of value (0.05%). County summary and practice notes.
- City of Chicago municipal transfer tax: two parts summarized in practice guides, often split by custom at closing. City portion is commonly $3.75 per $500 (0.75%), usually paid by the buyer. CTA portion is commonly $1.50 per $500 (0.30%), usually paid by the seller. Allocation norms and exemptions overview.
Example: $500,000 West Town sale
- Illinois: $500
- Cook County: $250
- Chicago buyer portion (City): $3,750
- Chicago seller portion (CTA): $1,500
- Total transfer taxes: $6,000, typically split as noted above. Rate details and common practice.
Illustrative example, checked October 2025. Your final allocation follows your contract and closing statement.
MyDec: what it is and why it matters
MyDec is the Illinois Department of Revenue’s online system, hosted on MyTax Illinois, that handles Real Estate Transfer Declarations and issues electronic transfer tax stamps. Preparers use it to submit PTAX‑203 forms and, for Chicago, the City’s transfer declaration. Review the MyDec overview.
Cook County requires MyDec for real estate conveyances, a practice in place since 2019. That means your closing team will create the MyDec record, route it for acceptance, and ensure the status is complete before recording your deed. See the countywide MyDec requirement background.
MyDec tracks statuses such as draft, submitted, accepted, and closing completed. Recorders and Chicago’s stamp process typically want the declaration accepted and ready to close before issuing stamps or recording the deed. Check IDOR’s guidance on MyDec and declarations.
Who files MyDec
In most transactions, your attorney or the title company prepares and submits the MyDec declaration. Buyers and sellers usually do not need their own MyDec accounts. How preparers use MyDec.
Chicago items that can delay stamps
West Town is inside the City of Chicago, so a few city requirements apply before municipal transfer stamps are issued. These are routine, yet they often trigger last‑minute delays if ordered late.
Full Payment Certificate (water, sewer, refuse)
The City requires a Full Payment Certificate that shows all municipal utility charges tied to the property are paid or waived. Without this certificate, the City will not issue its transfer stamps and the recorder may reject the deed. Order this early to avoid bottlenecks. What closers watch for.
Certificate of Zoning Compliance
For many 1 to 5 unit residential properties that are not condos or co‑ops, Chicago requires a Certificate of Zoning Compliance, or proof of waiver. Condos, co‑ops, and many commercial assets are commonly exempt. Confirm your property type and order the right document. Zoning certificate overview.
Other municipal hurdles
Unpaid final water bills, overdue refuse charges, or certain municipal liens can block stamp issuance. Your closing team will clear these items before stamp purchase and recording. See common issues summarized.
Who orders and by when
Sellers or their attorneys usually request the Full Payment Certificate and zoning documents, although title teams often assist. Because processing can take several days, build this into your timeline. Timing tips from title practice.
If items are missing at closing
If required stamps or certificates are not in place, the recorder can refuse the deed. Title companies may hold funds in escrow until recording is accepted, which delays possession and post‑closing steps. Why planning ahead matters.
Electronic stamps and paper phase‑out
Illinois law supports electronic revenue stamps and the related e‑filing process, which is why MyDec is now standard. Paper stamps have been phasing out in favor of electronic workflows, so expect your stamps to be issued digitally. Read the statutory framework.
West Town pre‑closing checklist
- Confirm the tax math and who pays each line item: State, County, City buyer portion, and CTA seller portion. Rate and allocation summary.
- Have your team prepare the MyDec PTAX‑203 and any supplemental forms early, and confirm the declaration ID. MyDec basics for filers.
- Order the City Full Payment Certificate and clear any water, sewer, or refuse balances. Common closing blockers.
- Verify whether a Certificate of Zoning Compliance is required for your property type and request it if needed. Zoning certificate overview.
- Review your closing statement to ensure funds cover the exact stamp amounts and allocations.
Simple closing timeline
- 7 to 14 days before closing: open the MyDec file, order the Full Payment Certificate, and request zoning documentation if required. MyDec process overview.
- 3 to 5 business days before closing: confirm MyDec status is accepted and closing ready, verify municipal certificates are issued.
- Closing day: purchase electronic stamps through MyDec, present deed for recording, then disburse funds once the recorder accepts the deed.
Stay current on rates
Tax rates and municipal rules can change. For current requirements, check the Illinois Department of Revenue’s MyDec pages and the City’s finance or stamp guidance. Notably, Chicago has debated transfer tax changes by ballot in recent years, so always verify the latest rates during your contract period. See context on recent proposals. MyDec and PTAX guidance.
A well-prepared team keeps your West Town closing on schedule. If you want a calm, detail‑driven process with clear next steps and strong communication from contract to keys, connect with Nicole Fabiano to get started.
FAQs
Who pays transfer taxes in a West Town closing?
- In a typical Chicago sale, buyers pay the City’s buyer portion and sellers pay the CTA portion, with sellers often covering State and County taxes, but the contract can change this and your closing statement controls. See practice norms.
Do I need my own MyDec account as a buyer or seller?
- Usually no, because your attorney or title company prepares and files the MyDec declaration for you and provides the declaration ID at closing. MyDec overview.
How long do Chicago certificates take before closing?
- The Full Payment Certificate and zoning certificate often take a few business days to a week, and longer if there are unpaid balances or processing backlogs, so order early. Timing guidance.
What happens if the City will not issue stamps on closing day?
- Without required stamps and certificates the recorder may refuse the deed, and title may hold funds in escrow until issues are resolved, which delays possession. Common blockers to avoid.
Are Chicago transfer tax rules changing soon?
- Rates and rules can change through ordinance or ballot, so confirm the latest guidance during your transaction window with official sources and your closing team. Recent proposal context.
