First-Time Home Buyer Tax Credit

Part of the recent Stimulus bill President Obama just signed included an increase in the tax credit for first-time home buyers. The amount of the tax credit is the lesser of 10% of the cost of the home or $8000 (the old limit was $7500). However, the big difference is that unlike the previous credit that needed to be paid back, this one does not. The home must be purchased between January 1, 2009 and December 1, 2009.

There are some conditions though.
- You must be a first-time home buyer
- The property must be your primary residence
- You are eligible for the entire credit if your adjusted gross income is at or below $75,000 (individually) or $150,000 (filing jointly). If your gross income is between $75,000-95,000 (individually) or $150,000-170,000 (filing jointly), you may not receive the entire credit. Should your adjusted gross income exceed $95,000 (individually) or $170,000 (filing jointly)you are not eligible for this credit.
- You must remain in the home for at least 3 years. If the home is sold within 3 years of the purchase, the entire amount of the credit is recaptured on the sale.

New Chicago Transfer Tax

The Chicago City Council moved toward property sellers bearing the burden of an impending increase in Chicago’s real estate transfer tax. Buyers would be off the hook for the 40 percent increase.

Buyers already pay the current tax of $3.75 for every $500 of purchase price. Sellers now look to be hit with the $3 per $1,000 increase, which goes into effect on April 1.

The Home Builders Association of Greater Chicago feels sellers would be “stripped” of equity. Others feel that prices have appreciated so greatly over the last few years and have little sympathy.

Home sales that close before April 1 will not be subject to the higher tax.

Chicago Transfer Tax

Below is a helpful list of transfer tax rates / stamps normally required for the Metro Chicago area and who is customarily responsible for these fees. Please check with your real estate attorney for precise details as we cannot guarantee the accuracy of this data. Also feel free to reference http://cmetro.ctic.com/forms.asp which updates monthly.

Area:	Tax Levied:	Customarily Paid By:	Effective Date:
State of Illinois	0.50 /1,000.00	Seller
Cook County	0.25 /1,000.00	Seller
Alsip	3.50 /1,000.00	Seller	5/1/94
Bartlett			5/1/94
Bedford Park	50.00 flat fee	Seller	5/11/96
Bellwood	5.00 / $1,000.00	Seller	7/18/96
Berkley	$2.00 flat fee & water certification		3/1/00
Berwyn	10.00 / $1,000.00	Seller	10/15/93
Buffalo Grove	3.00 / $1,000.00		3/1/92
Burbank	5.00 / $1,000.00	Seller	6/13/93
Burnham	5.00 / $1,000.00	Buyer	2/9/85
Calumet City			7/12/95
Calumet Park	5.00 / $1,000.00	Buyer	1/10/80
Chicago	3.00 / $1,000.00	Seller	4/1/08
Chicago	3.75 / $500.00	Buyer	1/9/88
Chicago Heights	4.00 / $1,000.00		4/1/93
Cicero	10.00 / $1,000.00	Seller	7/19/93
Country Club Hills	5.00 / $1,000.00	Seller	4/11/94
Countryside	flat fee $50.00	Buyer	8/12/96
Des Plaines	2.00 / $1,000.00	Seller	4/1/88
Dolton	Need Water Certification & Building Inspections
East Hazel Crest	$25.00 Flat Fee	Buyer
Elgin		Seller	6/1/95
Elk Grove Village	3.00 / $1,000.00	Seller	7/1/88
Elmhurst	3.00 / $1,000.00	Seller
Elmwood Park	5.00 / $1,000.00 ($35.00 For Exempt)	Seller
Evanston	5.00 / $1,000.00	Seller	4/1/87
Evergreen Park	3.00 / $1,000.00	Seller	11/1/86
Franklin Park	Fee Based Structure	Seller
Glenwood	5.00 / $1,000.00	Seller	6/15/85
Hanover Park	3.00 / $1,000.00		1/1/97
Harvey	4.00 / $1,000.00	Buyer	12/8/97
Harwood Heights	10.00 / $1,000.00	Buyer	2/11/96
Hillside	3.75 / $1,000.00	Buyer	9/3/96
Hoffman Estates	3.00 / $1,000.00	Seller	5/1/86
Maywood	4.00 / $1,000.00	Buyer	6/12/94
McCook		Seller
Morton Grove	3.00 / $1,000.00	Seller	2/1/88
Mount Prospect	3.00 / $1,000.00	Buyer	5/1/90
Niles	3.00 / $1,000.00		6/14/93
Norridge	Requires Inspection Certificate		10/28/99
Oak Lawn	5.00 / $1,000.00	Seller	1/1/82
Oak Park	8.00 / $1,000.00	Seller	1/19/83
Park Forest	3.00 / $1,000.00	Seller	8/1/89
Park Ridge	2.00 / $1,000.00	Seller	11/1/87
River Forest	.50 / $1,000.00	Seller	7/1/83
River Grove			6/8/84
Rolling Meadows	3.00 / $1,000.00	Seller
Schaumburg	1.00 / $1,000.00	Seller	10/1/94
Skokie	3.00 / $1,000.00	Seller	9/1/87
Stickney	5.00 / $1,000.00	Seller	8/1/90
Stone Park	0.50 / $500.00	Seller	8/16/87
Streamwood	3.00 / $1,000.00	Seller	1/23/89
University Park	.50 / $1,000.00	Seller	10/12/88
Westchester	$25.00 Flat Fee
Wilmette	3.00 / $1,000.00	Buyer	2/22/88

We do not guarantee the accuracy or timeliness of any information on this site. Use at your own risk. This data has been compiled from multiple government and commercial sources.