To calculate the Property Transfer Tax in Chicago, multiply the sale price by 3% for the first $500,000 and 1.5% for amounts exceeding $500,000. For example, a $700,000 sale results in a $15,000 tax on the first $500,000 and $3,000 on the remaining $200,000, totaling $18,000. The Maintenance Fund, applicable to non-owner-occupied and second-home properties, is calculated as 0.5% to 1.5% of the property’s assessed value, depending on its use. A property assessed at $400,000 with a 1% rate would incur a $4,000 annual tax. Exemptions apply for primary residences and qualifying businesses.

The Property Transfer Tax supports city infrastructure and services by levying fees during property transactions. In 2022, Chicago collected $150 million from this tax, funding projects like street repairs and public safety. The Maintenance Fund addresses higher public service costs for non-residential areas, ensuring equitable sharing of maintenance burdens. Data from the Chicago Department of Finance shows the fund generated $220 million in 2023, covering 60% of neighborhood infrastructure expenses. These taxes are critical for sustaining urban development and maintaining tax equity, as non-owner-occupied properties often generate greater long-term infrastructure demands. The structure balances revenue generation with fairness, ensuring all property types contribute proportionally to shared city services.