Illinois has an effective property tax rate of 1.88%, the second highest in the nation behind only New Jersey. On a $300,000 home in Cook County, homeowners pay approximately $5,640 per year in property taxes. Illinois’s high rates stem from over 6,900 overlapping local government units, heavy reliance on property taxes to fund school districts, and over $140 billion in unfunded pension liabilities that municipalities increasingly finance through property tax increases (est., Tax Foundation 2026 / U.S. Census ACS 2023).
Illinois has an effective property tax rate of 1.88%, the second highest in the nation, exceeded only by New Jersey (est., Tax Foundation 2026). On a $300,000 home in a typical Illinois county, the annual property tax bill runs from $5,400 to $7,200 depending on location. Unlike high-tax states without an income tax (Texas, Florida), Illinois also levies a flat 4.95% state income tax, meaning homeowners face both a high property tax and an income tax burden simultaneously.
Illinois Property Tax Rates and How Your Bill Is Calculated
Illinois assesses real property at 33.33% of fair cash value (market value) statewide under 35 ILCS 200/9-145. This means a home worth $300,000 has an assessed value of roughly $100,000 before exemptions. Tax rates (expressed in dollars per $100 of equalized assessed value, or as a percentage) are then applied to the equalized assessed value (EAV) to produce the annual tax bill. Cook County is an exception: residential property (Class 2) is assessed at 10% of market value, then adjusted upward by the Illinois Department of Revenue’s state equalization factor (historically around 2.9 to 3.0 for Cook) to bring it to the 33.33% statutory equivalent.
The statewide effective rate of 1.88% is calculated as actual taxes paid divided by market value using U.S. Census Bureau ACS 2023 five-year estimates. This effective rate reflects the combined tax rate from all overlapping taxing bodies: county, township, municipality, school district, park district, fire protection district, library district, water district, sanitary district, and any other special districts. Illinois has 6,963 local government units, more than any other state, and many properties are subject to levies from eight or more separate taxing bodies simultaneously.
School districts typically account for 60% to 70% of a typical Illinois property tax bill. This heavy reliance on property taxes for school funding persists because state education aid covers a lower share of K-12 operational costs than the national average, pushing school districts to levy more against local property values. Counties with large, well-funded districts (Lake, Kane) post higher effective rates partly because school levies are proportionally larger.
Illinois statewide effective rate, 2nd highest in the nation. Equivalent to approximately $5,640 per year on a $300,000 home (est., Tax Foundation 2026). Illinois also imposes a 4.95% flat state income tax.
| Home Value | Annual Tax (est.) | Monthly Payment (est.) | vs. U.S. Average |
|---|---|---|---|
| $150,000 | $2,820 | $235 | +$1,470 above avg. |
| $250,000 | $4,700 | $392 | +$2,450 above avg. |
| $300,000 | $5,640 | $470 | +$2,940 above avg. |
| $400,000 | $7,520 | $627 | +$3,920 above avg. |
| $500,000 | $9,400 | $783 | +$4,900 above avg. |
Estimates use 1.88% statewide effective rate. U.S. average uses 0.90%. No exemptions applied. Source: est., Tax Foundation / Census ACS 2023.
Illinois Homestead Exemptions and Property Tax Relief Programs
Illinois offers multiple homestead exemptions administered through county assessors and codified in the Illinois Property Tax Code (35 ILCS 200, Article 15). All exemptions reduce the equalized assessed value (EAV) rather than the market value directly. Because Illinois assesses at 33.33% of market value, a $10,000 EAV reduction corresponds to approximately $30,000 in market value relief. At a combined tax rate of 10% of EAV (roughly equivalent to a 3.3% rate on market value), a $10,000 EAV reduction saves approximately $1,000 per year.
The General Homestead Exemption (GHE) reduces EAV by $10,000 for Cook County and collar county properties and by $8,000 for collar counties or $6,000 elsewhere. The Senior Citizens Homestead Exemption provides an additional $8,000 EAV reduction in Cook and collar counties for homeowners age 65 and older. The Senior Citizens Assessment Freeze Homestead Exemption freezes the EAV at the base year level for qualifying low-income seniors, providing protection against rising assessments. The household income threshold for the Senior Freeze was raised to $75,000 by Public Act 104-0452.
Veterans with service-connected disabilities receive substantial relief under the Standard Homestead Exemption for Veterans with Disabilities (SHEVD). Veterans with a 70% or higher service-connected disability rating receive a 100% property tax exemption on up to $250,000 of EAV. Public Act 103-0596 (2024) extended full exemption to all World War II veterans regardless of disability rating. Contact the Illinois Department of Revenue or your county assessor to apply.
| Exemption / Program | EAV Reduction | Approximate Annual Savings | Who Qualifies |
|---|---|---|---|
| General Homestead Exemption (Cook) | $10,000 EAV | Approx. $800 to $1,200/yr | Owner-occupant primary residence in Cook County |
| General Homestead Exemption (Collar counties) | $8,000 EAV | Approx. $640 to $960/yr | Owner-occupant primary residence in DuPage, Lake, Will, Kane, McHenry |
| General Homestead Exemption (Other counties) | $6,000 EAV | Approx. $480 to $720/yr | Owner-occupant primary residence elsewhere in Illinois |
| Senior Citizens Homestead Exemption | $8,000 EAV (Cook / collar) or $5,000 (other) | Approx. $400 to $960/yr additional | Age 65+, owner-occupied primary residence |
| Senior Assessment Freeze | Freezes EAV at base year (no dollar cap) | Varies; protects against rising assessments | Age 65+, household income below $75,000 |
| Returning Veterans Exemption | $5,000 EAV for one tax year | Approx. $400 to $600 | Veterans returning from active duty in a conflict zone |
| SHEVD (30% to 69% disability) | $2,500 to $5,000 EAV | Approx. $200 to $600/yr | Veterans with 30% to 69% service-connected disability |
| SHEVD (70%+ disability) | 100% exemption up to $250,000 EAV | Full tax elimination on qualifying value | Veterans with 70%+ service-connected disability; also WWII veterans (P.A. 103-0596) |
| Persons with Disabilities | $2,000 EAV | Approx. $160 to $240/yr | Qualifying disability as defined by statute |
Illinois Property Tax Assessment System and PTELL Cap
Illinois townships and municipalities each conduct their own property assessments, with properties valued at 33.33% of fair cash value statewide. Cook County uses a classification system where residential property (Class 2) is assessed at 10% of market value; the county equalization factor then adjusts these values to the 33.33% standard for state purposes. Non-residential and commercial properties in Cook County are assessed at 25%. The Cook County Assessor conducts reassessments on a triennial (three-year) rotating schedule, with the City of Chicago townships, North and Northwest Suburbs, and South and Southwest Suburbs each reassessed in a different year.
The Property Tax Extension Limitation Law (PTELL), codified at 35 ILCS 200/18-185 et seq., limits the annual increase in aggregate property tax extensions for non-home-rule taxing districts to the lesser of 5% or the CPI change. For levy year 2024 (taxes payable 2025), the CPI was 3.4%, so the PTELL cap was 3.4%. For levy year 2025 (taxes payable 2026), CPI was 2.9%, setting the cap at 2.9%. PTELL applies mandatorily in Cook County and the five collar counties; other counties can adopt it by referendum.
Homeowners who believe their assessed value is incorrect can file a complaint with their county Board of Review. In Cook County, the complaint deadline is typically within 30 days of the publication of the assessment roll for the taxpayer’s township. The Illinois Property Tax Appeal Board provides a second level of administrative review before judicial appeals.
| System Element | Rule | Impact on Homeowner |
|---|---|---|
| Assessment Ratio (Statewide) | 33.33% of fair cash value | Tax rates are applied to one-third of market value; rates appear much higher in dollar terms |
| Cook County Residential Assessment | 10% of market value (Class 2) | State equalization factor adjusts to 33.33% equivalent; complex to compare with other counties |
| Cook County Reassessment | Triennial rotating schedule (City of Chicago, North suburbs, South suburbs) | Reassessment years can produce large bill jumps in affected townships |
| PTELL Cap (Cook + Collar) | Lesser of 5% or CPI per year on aggregate extensions | Limits annual levy increases for non-home-rule taxing districts |
| PTELL 2024 Cap Applied | 3.4% (CPI-controlled) | Taxes payable 2025 limited to 3.4% growth for capped districts |
| PTELL 2025 Cap Applied | 2.9% (CPI-controlled) | Taxes payable 2026 limited to 2.9% growth for capped districts |
| Board of Review Appeal | File within 30 days of assessment roll publication for your township | Homeowners can challenge assessed value; second review available at Illinois PTAB |
Major Tax Districts and County Variations in Illinois
Among Illinois’s 10 most populous counties, effective rates range from 1.80% in Madison County to 2.42% in Lake County. Lake County’s high rate reflects both high school district levies and significant municipal service infrastructure in communities like Waukegan and North Chicago. Cook County, despite containing Chicago and a large commercial tax base, posts a 1.82% effective rate that reflects both the PTELL cap’s limiting effect and the relatively high median home values in Chicago proper dampening the effective rate percentage.
Winnebago County (Rockford) and Kane County (Elgin/Aurora) face high effective rates above 2.30% due to pension funding obligations for local police and fire departments, combined with lower median home values relative to the fixed dollar amounts needed to fund full government services. The U.S. Census Bureau counts Illinois as having the most local government units of any state at 6,963, and many Illinois property owners are subject to eight or more separate overlapping levies.
The data table below matches the county rates powering the calculator above, sourced from U.S. Census Bureau ACS 2023 five-year estimates. Because Cook County uses a different assessment ratio and equalization methodology, effective rates for Cook County reflect actual taxes paid as a percentage of market value per ACS survey data, which is the most comparable cross-county metric.
| County | Effective Rate (est.) | Annual Tax on $300k Home | Notes |
|---|---|---|---|
| Cook | 1.82% | $5,460 | Includes Chicago; triennial reassessment; residential assessed at 10% with state equalization factor. Source: Census ACS 2023. |
| DuPage | 1.97% | $5,910 | Collar county west of Chicago; high school district levies. Source: Census ACS 2023. |
| Lake | 2.42% | $7,260 | Highest effective rate among top-10 IL counties; strong school and municipal levies. Source: Census ACS 2023. |
| Will | 2.20% | $6,600 | Fast-growing south suburb; new development increases levy demand. Source: Census ACS 2023. |
| Kane | 2.37% | $7,110 | Elgin/Aurora area; above-average pension and school district levies. Source: Census ACS 2023. |
| McHenry | 2.30% | $6,900 | Northwest suburb; high residential property tax load relative to income. Source: Census ACS 2023. |
| Winnebago | 2.31% | $6,930 | Rockford area; lower median home values increase effective rate. Source: Census ACS 2023. |
| Madison | 1.80% | $5,400 | Metro East (St. Louis border area); lowest effective rate among top-10. Source: Census ACS 2023. |
| St. Clair | 1.90% | $5,700 | O’Fallon/Belleville area; Metro East region with varied municipal service levels. Source: Census ACS 2023. |
| Champaign | 2.07% | $6,210 | University of Illinois community; school and university-related levies add to base rate. Source: Census ACS 2023. |
| Statewide Average | 1.88% | $5,640 | All owner-occupied properties statewide. Source: Tax Foundation / Census ACS 2023 (est.). |
Recent Illinois Property Tax Law Changes and 2025-2026 Outlook
Public Act 104-0452 (2025), responding to the U.S. Supreme Court’s decision in Tyler v. Hennepin County (2023), overhauled Illinois’s delinquent property tax sale procedures. The prior system allowed county tax buyers to keep the full proceeds from a tax sale including equity above the delinquent tax amount. The new law requires surplus equity from tax sales to be returned to the former property owner after all tax debts, fees, and costs are paid. This represents a significant constitutional property rights reform for Illinois homeowners facing tax delinquency.
Public Act 103-0596 (effective 2024 tax year) extended the 100% property tax exemption under the SHEVD program to all World War II veterans regardless of disability rating. This recognition of WWII-era service applies to qualifying veterans and their surviving spouses throughout Illinois. The same legislation also began phasing up the Senior Assessment Freeze income eligibility threshold, which reached $75,000 household income effective with the 2025 assessment year.
For Illinois homeowners, the federal SALT deduction cap of $10,000 has particularly significant impact because Illinois also imposes a state income tax. A household in Lake County paying $8,000 in property taxes and $6,000 in Illinois income taxes faces a combined $14,000 SALT bill but can deduct only $10,000 federally, losing $4,000 in potential deductions. This makes the after-federal-tax cost of Illinois property ownership meaningfully higher than the nominal rate suggests for taxpayers who itemize.
| Change | Effective Date | Key Impact | Who Benefits |
|---|---|---|---|
| Tax Sale Surplus Equity Return (P.A. 104-0452) | 2025 | Surplus equity from delinquent tax sales returned to former owner after debts paid | Homeowners facing property tax delinquency |
| WWII Veteran Full Exemption (P.A. 103-0596) | 2024 Tax Year | 100% property tax exemption extended to all WWII veterans regardless of disability rating | WWII veterans and surviving spouses |
| Senior Freeze Income Threshold Increase | 2025 Assessment Year | Household income limit raised to $75,000 for Senior Assessment Freeze | Low-to-moderate income senior homeowners |
| PTELL Cap 2025 (Levy Year) | Taxes Payable 2026 | 2.9% cap on aggregate levy extensions for capped non-home-rule districts | All property owners in PTELL-subject districts |
| Equity Study Mandate (P.A. 103-0632) | 2024 | State study on property tax system equity and assessment practices required | All taxpayers (potential future reforms) |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only. Illinois property tax bills are determined by combining the equalized assessed value (EAV) of your property with the total levy extensions from every overlapping taxing body at your address. Your actual bill depends on your township assessor’s market value determination, the state equalization factor applied by IDOR (especially in Cook County), all applicable exemptions, and the combined levy of every taxing body covering your specific parcel. Before purchasing Illinois property, always request the most recent tax bill and identify every taxing body listed.
What this calculator does not account for:
- Cook County’s 10% residential assessment ratio and state equalization factor (residential effective rates in Chicago can vary substantially from county-wide averages)
- Specific overlapping taxing body levies (school district, park district, fire district, library, sanitary district) at your parcel address
- General Homestead, Senior Freeze, or veterans’ EAV reductions that lower the taxable base
- Triennial reassessment year effects in Cook County townships
How to get an accurate estimate:
- Look up your parcel on your county assessor’s website to find the current assessed value, EAV, equalization factor, and enrolled exemptions.
- Request the most recent tax bill to identify every taxing body and their individual levy amounts.
- Apply for all available exemptions (General Homestead, Senior, Veterans) through your county assessor before the annual deadline.
- If purchasing in Cook County, ask your real estate attorney about the current EAV, state multiplier, and whether a reassessment year is upcoming for the property’s township.
Data sources: County effective rates use U.S. Census Bureau ACS 2023 five-year estimates. Statewide rate uses Tax Foundation 2026. Assessment ratios from Illinois Department of Revenue. PTELL data from Illinois General Assembly (ilga.gov).
Return to the National Property Tax Calculator to compare Illinois with other states.