## Property tax in Illinois Property taxes fund local government — schools, fire, police, libraries, parks. Illinois's effective rate (~~2.07%) varies dramatically by county and city. ### Illinois property tax framework Cook County triennial reassessments; many local levying districts. ## How property tax is calculated Standard formula: **Property tax = Assessed value × Tax rate (millage / mill levy)** **Assessed value:** - Some states use 100% of market value - Others use a fraction (e.g., Alabama 10% of market value, California's restricted assessed value) - Many states reassess every 1-6 years **Millage / mill rate:** - Mil = 1/1000 of a dollar - Combined rate from county + city + school district + special districts - Often shown as "per $1,000 of assessed value" or as a percentage ## Common tax classifications Most states classify property differently for tax purposes: - **Residential** (often lowest rate) - **Commercial / industrial** (higher rate) - **Agricultural** (current-use valuation) - **Vacant land** - **Personal property** (vehicles, business equipment in some states) - **Centrally-assessed** (utilities, railroads) ## Common exemptions and caps **Homestead exemption** — most states give partial exemption for primary residence. Amount varies hugely: - Florida: $50K + Save Our Homes 3% cap - Texas: $100K (post-2023) - DC: ~$84K - Many states: $20K-$50K **Senior / disabled / veteran exemptions** — most states have additional exemptions for: - Seniors (65+) - Disabled persons - Veterans (especially disabled veterans) - Surviving spouses of military members **Annual assessment / tax caps:** - California: 2% per year (Prop 13) - Florida: 3% homestead increase cap - Maryland: 10% residential increase cap - Texas: 10% increase cap on homestead - Oklahoma: 3% increase cap - Various states have similar caps **Other exemptions:** - Religious / charitable property (federal + state) - Educational institutions - Government property - Historic preservation - Conservation easements - Affordable housing ## Special programs **Senior freeze / senior deferral programs.** Many states freeze taxes for seniors over a certain age + income threshold, or allow tax deferral until sale. **Circuit-breaker programs.** Income-based tax credits when property taxes exceed % of income. **Current-use valuation.** Agricultural / forestry / open-space property valued at use rather than market. **Property tax abatements.** For new construction, redevelopment, business attraction. ## When taxes are due Varies by state and locality: - Some annual (lump sum) - Some semi-annual (March / September) - Some quarterly - Most have late penalties of 5-10% + interest - Long-overdue accounts go to tax sale ## Tax sales / lien sales When property taxes go unpaid: **Tax lien sale:** State / county sells lien to investor; owner has redemption period to pay (with interest) or lose property. **Tax deed sale:** State / county forecloses and sells the property itself. Procedures vary widely by state. Tax sales create both opportunity (investor income) and risk (property loss for delinquent owners). ## Appeals (briefly) If you think your assessment is too high: 1. **Informal review** with assessor first 2. **Formal appeal** to county / state board 3. **Court appeal** if board denies Strict deadlines apply (typically 30-90 days from notice). See our state-specific property-tax-appeals guide for details. ## Federal tax interaction **State and Local Tax (SALT) deduction** under federal income tax: - Capped at $10,000 since 2018 Tax Cuts and Jobs Act - Allows deduction of property taxes + state income / sales taxes (combined) - TCJA cap may sunset in 2025 (legislation pending) **Mortgage interest deduction** also affected by limits. ## What you should do If your Illinois property tax bill seems too high: review your assessment carefully. File an appeal if assessment exceeds market value. Apply for ALL exemptions you qualify for. For complex cases (commercial property, multiple exemptions, large assessment errors), hire a property-tax consultant or attorney. Most Illinois property-tax consultants charge contingency fees (25-40% of first year's tax savings). --- *This guide is general information about Illinois law as of early 2026 and is not legal or tax advice. Property tax law is heavily local and changes annually. Talk to a CPA or property-tax attorney about your specific situation.*