The Naperville transfer tax is a city real estate transfer tax of $1.50 for every $500 of the sale price, which comes out to $3.00 per $1,000. The buyer pays it by buying a transfer stamp from the city’s Finance Department, and the county will not record the deed without that stamp on it.1City of Naperville. Real Estate Transfer Tax
What You’ll Actually Owe
The city rounds the sale price up to the next $500 increment and charges $1.50 on each block. A $425,000 sale produces an $850 city tax. A $500,000 home generates $1,500. A $750,000 sale means $2,250.1City of Naperville. Real Estate Transfer Tax
Illinois adds a state transfer tax of $0.50 per $500 of the sale price, or $1.00 per $1,000, on top of the city’s charge.2Illinois General Assembly. 35 ILCS 200 Property Tax Code On that same $500,000 sale, the state layer adds $500, bringing the combined city and state transfer tax to $2,000.
There is also a county piece. Illinois counties may impose a transfer tax of up to $0.25 per $500 of value.3Illinois Department of Revenue. Real Estate Transfer Tax Stamp Purchase Forms/Procedures – Counties Naperville straddles DuPage and Will counties, so which rate applies depends on which side of the county line the property sits. Confirm the current rate with the correct recorder’s office before closing.
The buyer is the legally liable party for the city tax under city ordinance. A purchase contract can shift the cost to the seller as a matter of negotiation, but if the tax goes unpaid, the city still looks to the buyer.1City of Naperville. Real Estate Transfer Tax
When the Tax Doesn’t Apply
Plenty of deed changes are exempt. The city issues free exempt stamps for transfers that don’t involve an actual sale: moving property into or out of a living trust, adding or removing a spouse’s name after marriage or divorce, recording a name change, and refinancing with the same owner.1City of Naperville. Real Estate Transfer Tax
Foreclosures are split. A sheriff’s deed transferring the property to the foreclosing bank qualifies for an exempt stamp. If an individual buys the property at the sheriff’s sale, the full transfer tax applies.1City of Naperville. Real Estate Transfer Tax
Illinois law exempts additional categories from the state tax, including transfers involving government bodies, deeds that secure or release a debt, tax deeds, deeds of partition, deeds with consideration under $100, and transfers to charitable or religious organizations.4FindLaw. Illinois Statutes Chapter 35 Revenue 200/31-45 Even when nothing is owed, you still need an exempt stamp on the deed before the county will record it.5City of Naperville. Taxes and Financial Forms
What You Need Before You Apply
The item most likely to hold up your closing is not the stamp itself but the statement of open accounts. The seller must request this from the city at least seven business days before closing. It confirms that all outstanding water, sewer, and other municipal utility charges have been paid, and no stamp will be issued until the city verifies the account is clear.1City of Naperville. Real Estate Transfer Tax
Along with that clearance, gather:
- The Naperville Real Estate Transfer Tax Declaration, which asks for the Property Index Number (PIN), legal description, and final sale price.
- The original signed and notarized deed that will be recorded with the county.
- Form PTAX-203, the Illinois Real Estate Transfer Declaration, which the state requires for all property sales.6Illinois Department of Revenue. Instructions for Form PTAX-203 Illinois Real Estate Transfer Declaration
- A sheriff’s receipt, if the property was bought at a foreclosure sale.
Names on the declaration have to match the names on the deed exactly. A misspelling or missing suffix can trigger a rejection days before closing.1City of Naperville. Real Estate Transfer Tax
How To Get the Stamp
Online
The city accepts applications through an online portal, with separate links for taxable purchases and exempt deed changes on its Real Estate Transfer Tax page. Reviews take about three business days, but the city recommends submitting at least seven days before you need the stamp.1City of Naperville. Real Estate Transfer Tax
In Person
You can also apply at the Finance Department in the Naperville Municipal Center, 400 S. Eagle Street, Monday through Friday from 8 a.m. to 4:30 p.m. except holidays. The city accepts Visa, MasterCard, Discover, American Express, personal or business checks, money orders, and cash.1City of Naperville. Real Estate Transfer Tax Once payment clears or the exemption is verified, the stamp is applied directly to the original deed.
Recording the Stamped Deed
The stamped deed has to be filed with the county recorder to complete the transfer. Properties on the DuPage County side of Naperville go to the DuPage County Recorder of Deeds; properties on the Will County side go to the Will County Recorder of Deeds. County recorders charge their own recording fees, separate from the transfer tax, so budget for those as an additional closing cost. The sale is not legally complete until the county records the stamped deed.