Guides / Property Taxes / Illinois

Property Taxes in Illinois

Effective Rate

Illinois has the second-highest effective property tax rate in the U.S. (behind only New Jersey), and consistently comes in at roughly double the ~0.99% national average. Figures vary slightly by methodology/year: WalletHub's 2025 ranking puts Illinois at 2.07% (some WalletHub citations show 2.01%), while the Tax Foundation's 2026 report shows 1.88% effective rate on owner-occupied housing value. Illinois Policy Institute, using WalletHub data, states Illinois families pay 2.07% versus the national average — more than double what a typical American family pays. Regionally, Cook County (Chicago) has seen especially sharp increases: the 2025 tax levy (billed in 2026) rose county-wide by 4.8% (nearly $19.2 billion total, up almost $871.8 million), well above the 3.5% inflation rate, driven by reassessments and a shift of tax burden from commercial to residential property. Chicago's median residential bill alone jumped 16.7% in this cycle — the largest one-year percentage increase for the city in at least 30 years.

Example: Statewide: WalletHub's analysis shows Illinois families paying about $6,285/year in property taxes on the average U.S. home value ($303,400 for 2025), versus a $2,969 national average for the same home value — more than double. On Illinois's own state median home value (~$263,300 per WalletHub's methodology), annual taxes come out to roughly $5,298. Cook County specific: the median annual property tax bill is $6,349 on a median home value of $335,800 (per SmartAsset/county data); within the City of Chicago specifically, the median residential tax bill for the 2025 tax year (billed 2026) is $4,457, up 16.7% from the prior year.

Exemptions

General Homestead Exemption (GHE)
Amount: Up to $6,000 reduction in equalized assessed value (EAV)
Exempts the increase in current year EAV above the 1977 base EAV, capped at $6,000 (higher cap of $10,000 applies in Cook County under its long-time occupant/homeowner exemption structure). Applies to owner-occupied primary residences; automatically renews in most counties without annual reapplication.
Senior Citizens Homestead Exemption
Amount: $5,000 reduction in EAV
Available to homeowners age 65+ who own and occupy (or lease and occupy) the property as their residence; must apply through the county assessor's office (Cook County uses a slightly different, higher amount in some cases, but $5,000 is the statewide statutory baseline).
Low-Income Senior Citizens Assessment Freeze Homestead Exemption ("Senior Freeze")
Amount: Freezes EAV at qualifying year's level (no fixed dollar cap); household income limit $75,000 for 2026 (payable 2027), rising to $77,000 for 2027 and $79,000 for 2028 and beyond
Per Public Act 104-0452 (signed December 12, 2025), the income cap jumped from $65,000 (assessment year 2025, payable 2026) to $75,000 for assessment year 2026. This exemption locks the property's EAV so it does not rise with reassessments as long as the senior continues to qualify, effectively shielding them from future assessment-driven tax increases (though tax-rate changes can still affect the bill).

Figures vary somewhat by source/methodology (WalletHub 2.01-2.07% vs. Tax Foundation 1.88%; different median home values used), so I've cited a range with sources rather than a single invented number — always check the specific county assessor (e.g., Cook County Assessor's Office) for exact local rates and exemption amounts, since Cook County applies some exemptions differently (e.g., a higher General Homestead cap up to $10,000 for long-time occupants) than downstate counties, and actual bills depend heavily on local tax rates set by overlapping taxing districts (schools, municipalities, parks, etc.), not just the state exemption framework.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Down Payment Assistance in IllinoisTransfer Tax & Closing Costs in IllinoisBuyer-Agent Agreements in IllinoisSeller Disclosure Laws in IllinoisFind Agents in IllinoisHome Affordability Calculator