Thinking about moving between Illinois and Wisconsin and wondering how transfer taxes fit into your closing costs? You are not alone. The rules, who typically pays, and how these charges show up on your Closing Disclosure can feel confusing, especially if you are crossing the border in or out of Kenosha County. In this guide, you will get a clear, practical overview of what to expect, who usually pays, and simple examples you can use to budget. Let’s dive in.
Illinois transfer tax at a glance
Illinois imposes a statewide real estate transfer tax on most property sales. The commonly cited state rate is $0.50 per $500 of consideration, which equals $1 per $1,000, or 0.1% of the purchase price. Some Illinois cities and counties also add their own transfer taxes on top of the state tax. These local rates vary by location and can be significant in certain jurisdictions.
In practice, sellers in Illinois often pay the state transfer tax, but your purchase contract controls who pays. Where local municipal or county transfer taxes apply, it is also common for sellers to cover them, though this is negotiable and depends on the contract and local custom.
Quick Illinois examples
- $200,000 sale price → 0.1% = $200 in state transfer tax.
- $350,000 sale price → 0.1% = $350 in state transfer tax.
- Local Illinois transfer taxes, if any, are added to the totals above. Always confirm the property’s municipality and county.
Where it appears on your Closing Disclosure
On the Closing Disclosure, Illinois transfer taxes usually show on the seller’s side under a line such as “Transfer Taxes,” “Conveyance Tax,” or similar. If your contract assigns payment to the buyer, the charge will appear on the buyer’s side. Title companies typically break out state and any local taxes so you can see each item.
Wisconsin recording fees explained
Wisconsin handles closing costs differently. There is not a comparable statewide percentage transfer tax like Illinois. Instead, buyers and sellers typically see county-level recording and document fees collected by the Register of Deeds. In Kenosha County, these amounts are usually modest and depend on the type of document, the number of pages, and whether certified copies or indexing are needed.
In many Wisconsin transactions, buyers pay to record the deed and their mortgage if they are financing. Sellers cover items tied to the sale such as prorations and payoff-related charges. Because Wisconsin does not apply a large percentage-based transfer tax like Illinois, these recording fees are generally small by comparison.
Where it appears on your Closing Disclosure
On the Closing Disclosure, Kenosha County recording fees typically appear on the buyer’s side under “Recording Fees” or a similar label. Other small statutory or municipal items will be listed separately as needed.
Cross-border scenarios and what to expect
Moving between Illinois and Wisconsin often means two different sets of rules. Here is what most buyers and sellers in the Kenosha area experience:
Selling in Illinois, buying in Wisconsin
- Expect Illinois state transfer tax on your Illinois sale, plus any local Illinois transfer taxes where applicable. Sellers commonly pay these, subject to the contract.
- Expect modest Kenosha County recording fees when you take title in Wisconsin. Buyers commonly pay recording fees for the deed and mortgage.
Selling in Wisconsin, buying in Illinois
- Expect modest Wisconsin recording fees on your Wisconsin sale. Sellers may have other routine costs, but not a large statewide percentage transfer tax.
- When buying in Illinois, confirm who pays transfer taxes in your contract. Many Illinois markets customarily place state and any local transfer taxes on the seller, but practices can vary.
Simple budget examples
Use these figures as a starting point. Always ask your title company for an itemized estimate for your specific property, price, and municipality.
- Illinois state transfer tax estimate at 0.1%:
- $250,000 sale → $250
- $500,000 sale → $500
- Local Illinois transfer taxes: may apply and can be more than the state amount in some cities or counties. Confirm the property’s exact location.
- Kenosha County recording and document fees: typically modest and often under a few hundred dollars in simple residential closings. The exact amount depends on the document types and page counts. Check the current Kenosha County Register of Deeds fee schedule through your title company.
Who pays and how to negotiate
Who pays these costs is usually guided by local custom, then confirmed in your purchase contract. To avoid surprises, address the following in your offer or counteroffer:
- Specify who pays state transfer taxes (for Illinois properties) and any local Illinois transfer taxes.
- Specify who pays county recording fees in Wisconsin, including deed and mortgage recording fees.
- Ask for a preliminary settlement worksheet early to see all line items.
How these costs show on the CD or HUD-1
The Closing Disclosure separates buyer and seller costs and must be delivered to the buyer at least three business days before closing. Sellers receive a similar settlement statement. Expect to see the following labels:
- “Transfer Taxes,” “Conveyance Tax,” “State Transfer Tax,” or a city/county label for Illinois state and local transfer taxes.
- “Recording Fees,” “Deed Recording,” or “Title/Recording” for Kenosha County recording charges.
- Separate line items for each state or local tax when applicable for clarity.
Tips to review your documents:
- Ask for an itemized breakdown that separates state transfer taxes, local transfer taxes, and recording fees.
- Confirm whether any transfer taxes will be withheld from seller proceeds at closing.
- If you are financing, confirm who pays your mortgage recording fee and that it is reflected correctly on the buyer’s side.
Quick checklist for Kenosha-area movers
- Identify the property’s jurisdiction: state, county, and city.
- If the property is in Illinois, confirm whether local city or county transfer taxes apply in addition to the state tax.
- For Wisconsin purchases, have your title company confirm Kenosha County recording fees based on the documents and page counts.
- Put payment responsibility for transfer taxes and recording fees in your contract.
- Request an early, itemized estimate from the title company to finalize your budget.
Final thoughts and local help
The big takeaway is simple. Illinois uses a percentage-based transfer tax, plus possible local add-ons, and the seller commonly pays. Wisconsin, including Kenosha County, typically applies modest recording and document fees instead. When you know which costs apply and where they appear on your Closing Disclosure, you can budget with confidence and negotiate with clarity.
If you are planning a move along the Illinois–Wisconsin border and want a clear path from contract to closing, our team is here to help. Reach out to the Renee OBrien Group for a custom estimate and guidance tailored to your address, price point, and timeline.
FAQs
What is Illinois’s state transfer tax rate?
- Illinois’s state transfer tax is commonly cited as $0.50 per $500 of consideration, equal to 0.1% of the purchase price. Local Illinois transfer taxes may also apply depending on the property’s city or county.
Who usually pays Illinois transfer taxes in a sale?
- Sellers commonly pay Illinois state transfer taxes and, where applicable, local transfer taxes, but the purchase contract controls and practices can vary by market.
Does Wisconsin have a statewide transfer tax like Illinois?
- Wisconsin does not apply the same percentage-based transfer tax structure; buyers and sellers typically encounter county-level recording and document fees, which are usually modest in Kenosha County.
Where do transfer taxes and fees appear on the Closing Disclosure?
- Illinois transfer taxes often show on the seller’s side under “Transfer Taxes” or similar; Kenosha County recording fees typically appear on the buyer’s side under “Recording Fees,” subject to contract terms.
How much should I budget for Kenosha County recording fees?
- Amounts vary by document type and page count, but they are commonly under a few hundred dollars for simple residential closings; ask your title company for the current Kenosha County fee schedule.
What should I confirm in my contract about these costs?
- Clarify who pays Illinois state and any local transfer taxes, who pays Wisconsin deed and mortgage recording fees, and request an itemized estimate early to avoid surprises.
