Who Pays Transfer Taxes in a Rock Island Home Sale?

Are you budgeting for a Rock Island home sale and wondering who covers transfer taxes at closing? You are not alone. Transfer taxes can be confusing, and the rules can vary by state and municipality, which affects your bottom line. In this guide, you will learn who typically pays in Illinois, how the tax is calculated, what to verify for Rock Island County and the City of Rock Island, and how to avoid surprises. Let’s dive in.

Transfer taxes in Illinois: The basics

Illinois imposes a state real estate transfer tax that is collected when the deed is recorded with the county recorder. The tax is calculated using a dollars-per-500-dollars-of-price method and is paid at recording. The county will not record your deed until the required transfer tax and documents are submitted.

You will also file a Real Estate Transfer Declaration, known as the PTAX-203. This form supports property tax assessment and is typically completed at closing. It is separate from the transfer tax itself.

Who usually pays in Rock Island

In many Illinois markets, sellers customarily pay the state and any county transfer taxes as part of seller closing costs. This is not a hard rule, it is a local custom that can vary and is always negotiable. Your purchase contract should clearly state who is responsible for transfer taxes and for recording fees.

Title and escrow teams follow the contract. They will collect the taxes due, prepare the settlement statement, and make sure the correct amounts are paid when the deed is recorded.

How to set expectations in your contract

• Spell out who pays state, county, and any municipal transfer taxes.
• Clarify who pays recording fees for the deed and mortgage, if any.
• Confirm that the title or closing agent will prepare and file the PTAX-203.

State, county, and city: What to check locally

Your total transfer tax in Rock Island can include three layers, depending on local rules:

• Illinois state transfer tax. Calculated per 500 dollars of price and collected at recording.
• Rock Island County transfer tax. Some counties in Illinois impose additional transfer taxes, while others do not. You need to confirm the current county position.
• City of Rock Island transfer tax. Some municipalities impose their own transfer taxes, others do not. This can change, so verify before you sign a contract.

The exact mix depends on current state statute, county policy, and city ordinance. Since local amounts can change, you should always verify current rates just before you finalize terms.

Where to confirm current rates and procedures

• Illinois state source: Confirm the current state transfer tax rate and download the PTAX-203 form from Illinois Department of Revenue resources or the controlling state statute.
• Rock Island County Recorder or County Clerk: Check whether the county imposes a separate transfer tax, and review the recording fee schedule and procedures.
• City of Rock Island Finance or Treasurer’s office: Confirm whether any municipal transfer tax applies and how it is collected.
• Title company or closing attorney: Request a preliminary estimated closing statement showing all transfer taxes and recording fees, plus who is paying per the draft contract.

How the tax is calculated

Illinois uses a per-500-dollar-of-price method that is simple once you see the formula. If county or municipal taxes also apply, you calculate each using the same method and then add them together.

• Base formula: Transfer tax = (Sale price ÷ 500) × (dollars per $500)
• Combined formula: Total transfer tax = (Sale price ÷ 500) × (State $ per $500 + County $ per $500 + City $ per $500)

Because rates can change, focus on the formula. Your title company will plug in current rates and show the exact amount on your settlement statement.

Plug-and-play example template

Use this worksheet once you have confirmed current rates:

• Sale Price: $__________
• State rate: $_____ per $500 = (Sale price ÷ 500) × state rate = $__________
• County rate: $_____ per $500 = (Sale price ÷ 500) × county rate = $__________
• City rate: $_____ per $500 = (Sale price ÷ 500) × city rate = $__________
• Estimated total transfer tax due: $__________

Exemptions and special cases

Certain transfers may be exempt from transfer tax under state or local rules. Common categories can include transfers between spouses, transfers to government entities or qualifying nonprofits, some court-ordered transfers, gifts or nominal consideration with proper documentation, and some fiduciary or related-entity transfers. Exemptions are not automatic, and they usually require specific documentation filed with the recorder.

Even if a transfer is exempt from transfer tax, the PTAX-203 may still be required for assessment purposes. Always confirm the exact exemption code or paperwork with the recorder and your title company before closing.

Related fees to budget at closing

Transfer taxes are only part of your closing costs. You should also budget for:

• Recording fees for the deed and any mortgage, set by Rock Island County.
• Title examination, title insurance, and escrow or closing fees, allocated by local custom or as negotiated in your contract.
• Administrative costs for preparing and filing the PTAX-203.

Your preliminary estimated closing statement from the title company will itemize these charges.

Pre-closing verification checklist

Use this quick checklist to avoid surprises and confirm who pays what before you sign:

1. Confirm the Illinois state transfer tax rate and PTAX-203 requirements.
2. Check Rock Island County Recorder or County Clerk for any county transfer tax and for recording fees.
3. Ask the City of Rock Island Finance or Treasurer’s office about any municipal transfer tax.
4. Request a preliminary estimated closing statement from your title company that lists state, county, and city transfer taxes, plus recording fees.
5. If you believe an exemption applies, obtain the correct exemption documentation and verify acceptance with the recorder.
6. Make sure your purchase contract clearly assigns responsibility for all transfer taxes and recording fees.
7. Review the final Closing Disclosure at least one business day before closing to verify the amounts and payor.

Common pitfalls to avoid

• Do not assume there is no county or city tax. Verify each layer before negotiating credits or final pricing.
• Do not leave payor responsibility unstated. Put it in writing in the contract.
• Do not confuse the PTAX-203 with the tax itself. The PTAX-203 is a separate declaration that supports assessment.
• Do not skip a final review. Compare the settlement statement against your contract and your title company’s estimate.

If you are planning a home sale or purchase in Rock Island, clarity on transfer taxes protects your budget and helps you negotiate with confidence. When you understand who pays, how the tax is calculated, and how to verify current amounts, you can move toward closing with fewer surprises and a smoother experience.

Ready to map out your numbers and timeline with a calm, expert partner? Connect with Unknown Company to get your instant home valuation and a thoughtful next step.

FAQs

Who usually pays transfer taxes in a Rock Island home sale?

• In many Illinois markets sellers customarily pay the state and any county transfer taxes, but this is negotiable and should be specified in your contract and confirmed by your title company.

How do I find the current Illinois state transfer tax rate?

• Verify the rate through official Illinois Department of Revenue resources or the controlling state statute, then ask your title company to reflect it on your preliminary closing estimate.

Does Rock Island County or the City of Rock Island charge an extra transfer tax?

• Some Illinois counties and municipalities do impose additional transfer taxes, others do not, so you should confirm with the Rock Island County Recorder or Clerk and the City Finance or Treasurer’s office.

Can buyers and sellers split transfer taxes in Rock Island?

• Yes, transfer taxes can be allocated any way the parties agree, as long as the purchase contract clearly states the split and the title company follows those instructions at closing.

What is the PTAX-203 and why is it required?

• The PTAX-203 is Illinois’ Real Estate Transfer Declaration, filed to support property tax assessment, and it is typically required at closing even though it is separate from the transfer tax itself.

What other closing costs should I budget for besides transfer taxes?

• Expect recording fees set by Rock Island County, title insurance and escrow fees, and administrative costs for preparing required forms, all of which should appear on your title company’s estimate and final Closing Disclosure.