Property taxes for the state of Illinois.
Like many states, The Prairie State does not impose state taxes but institutes them at the local level through counties, townships, municipalities, school districts, and special taxing districts. Most property is assessed at 33.33% its market value, with the exception of farmland which is assessed based on its profit generating capabilities.
Also, Illinois taxes only real property (real estate), the profits from which are an important source of income for over 6,000 taxing districts. The property tax cycle generally lasts for two years. During the first year of the cycle, property is assessed based on its value as of January 1. During the second year, taxes are assessed, sent out, and then collected. So, for example, taxes assessed in 2007 won’t be paid until 2008.
Counties with a population exceeding 200,000 can classify property into different types for assessments purposes. Cook County is the only county that employs this measure, classifying 13 types of property at varying assessment values which range from 16% of market value (residential property) to 38% of market value (commercial property).
Illinois has several homestead exemptions you can benefit from:
- General Homestead Exemption – Homeowners who own and occupy their primary place of residence are eligible.
- Senior Citizen Assessment Freeze Homestead Exemption – Senior citizens with a household income $50,000 or less; other requirements must be met as well, and a PTAX-340 form must be filled out annually.
- Senior Citizen Homestead Exemption – A person 65 years or older can earn a $3,500 reduction in the equalized assessed value (EAV) of their property as long as taxes are paid.
- Homestead Improvement Exemption – This exemption applies only to the fair cash value of any improvement made to a property, with an annual maximum of $75,000. The exemption is valid for four years after the date of completion of the improvement. Form PTAX-323 must be filled out.
- Disabled Veterans’ Exemption – Disabled veterans can receive up to $70,000 of a property’s assessed value, depending on its classification. A veteran, or the widow(er) of a veteran, must report annually to the Illinois Department of Veterans’ Affairs to determine eligibility.
More specifics about tax exemptions can be found here.
Illinois Department of Revenue