Where the Chicago Transfer Tax Stands in 2026

What happened

Chicago's real estate transfer tax remains a flat tax. The Bring Chicago Home referendum, which asked voters to convert it into a graduated structure, was defeated at the March 19, 2024 election. Reporting from CBS Chicago and others put the result at roughly 53 to 54 percent voting no.

Because the measure failed, none of the proposed rate changes took effect. The transfer tax on a Chicago property sale continues to be assessed under the long-standing flat structure rather than the tiered rates the referendum would have created.

What the proposal would have done

Bring Chicago Home would have amended the city's transfer tax from a single flat rate into a progressive, tiered one. As described in coverage from the Tax Foundation and the Civic Federation, it would have lowered the rate on property sales under one million dollars while raising it on the portions of sales above one million and above an additional higher threshold.

The revenue was earmarked to fund efforts addressing homelessness, including permanent affordable housing and support services. Supporters framed it as a dedicated, recurring funding source; opponents, including real estate and business groups, argued it would weigh on commercial and multifamily transactions and ultimately on the broader market.

The legal road to the ballot

The measure reached voters only after a contested legal fight. A Cook County judge initially ruled the referendum invalid in February 2024, an Illinois Appellate Court panel then overturned that ruling, and the question ultimately stayed on the ballot. Once before voters, it was rejected.

As of this writing, the search record does not show a new transfer tax referendum on the ballot or a fresh ordinance adopting tiered rates since the 2024 defeat. Owners should treat any claim of a revived 'mansion tax' as unconfirmed until a specific measure is formally introduced or scheduled. We flag this because the policy idea has durable support and could resurface in a future form.

What it means for owners

The practical takeaway is straightforward: if you sell a Chicago property today, your transfer tax is calculated under the existing flat rate, not the rejected tiered proposal. Sellers of higher-value and commercial property in particular avoided the larger increase the referendum would have applied to sales above one million dollars.

The strategic takeaway is to stay aware. Housing-funding pressure has not disappeared, and a graduated transfer tax is the kind of proposal that can return in a revised form or through a different mechanism. For most owners of single-family homes and small multi-units, the day-to-day impact is simply that closing costs remain as they were. For owners of larger or higher-value property, it is worth confirming the current transfer tax rate at the time of any sale, since this is exactly the line item a future measure would target.

How to confirm the current rate

Transfer tax obligations involve both a city and a state component, and the city portion is the one the referendum would have changed. Before closing, confirm the current combined rate that applies to your sale price and property type, because municipal rates and any exemptions are set by ordinance and can be updated.

If you are planning a sale and want certainty on closing costs, the simplest path is to get a current figure tied to your specific property rather than relying on older summaries that may predate any change.