If you’re a real estate agent in Chicago, Illinois, you know more than anyone that property taxes can make or break a sale. Chicago’s property taxes are some of the highest rates in the nation, and it’s essential to consider them before buying or selling a home.
Whether you’re looking to buy or sell, generate more leads, represent clients in the Windy City, or are just curious, we have the information you need to know about Chicago property tax.
Property tax rates in Chicago for 2022
Chicago is filled with culture, from legendary hot dogs and pizza to stunning architecture. The Cloud Gate Sculpture in Millenium Park is a popular picture spot with its reflective surface and bean shape. Chicago values the arts and education, with 68 museums throughout the city. Sports fans will instantly know Wrigley Field, operating since 1914 and still going strong nearly 100 years later.
With its cultural significance and high tourism rate, it isn’t surprising that Chicago, and much of Illinois, has some of the highest property taxes in the United States. In fact, Illinois ranks second for the highest property taxes.
The property tax rates for the city of Chicago vary depending on location but average around 6.697% for a single-family home. Your property tax bill will likely be between $2,500 and $6,388, but could be higher or lower depending on where in the city you reside.
The suburbs surrounding Chicago have much higher rates on average, varying between 9.938% and 13.068%. On average, residents pay between $5,981 and $7,538 in property taxes.
The best way to determine your Chicago, Illinois, property tax rate is by visiting the Cook County Treasurer’s website. It offers a property tax overview by entering your property PIN number or address, giving you exact rates for your home and location.
Will property tax rates rise in 2023?
Chicago is already known for their infamously high property taxes. Historically, property taxes have risen 2.5% yearly to cover rising city costs, including the controversial city pension coverage. Rising property taxes have heavily impacted certain Chicago neighborhoods, such as the Lower West Side. Individual property owners have even reported a nearly 400% increase to be disputed with the city.
Despite initially proposing another 2.5% CPI hike in the 2023 Chicago Forecast Budget, Mayor Lightfoot’s $16.4 billion budget no longer includes a property rate increase for 2023. Lightfoot reported that unexpected revenue helped cover the year’s budget needs, and the increase was no longer necessary. As reported by the 2021 Tax Rate Report—with the second property tax installments due December 30, 2022—Chicago residents should see similar property tax rates in 2023.
However, certain areas in Chicago are due for property reassessments, meaning if your home value increases, your property taxes will rise—even if the rate is unchanged.
Tax rates in surrounding areas
Chicago’s property tax rates are pricey, but so are many places in Illinois. If you want to live near Chicago without paying the price, consider another place near Chicago and Cook County. Here is a quick list of general averages in locations near Chicago:
- Algonquin: 5.65%
- Wheaton: 6.63%
- Aurora: 7.81%
- Naperville: 5.99%
- Rockford: 9%
While not an exhaustive list, potential buyers can see how wide property taxes range in Illinois.
What does property tax revenue fund in Chicago?
Local property taxes are assessed and collected by Cook County to fund services and programs in the area, including:
- Police departments
- Fire stations
- Street maintenance
- Libraries
- Public schools
- Metro stations
- Community health centers
However, 80% of property taxes went to city pensions in 2022 and will continue to fund pensions in 2023.
To see if you qualify for a homestead, senior, disability, or other property tax exemption, contact the Cook County Assessor’s Office. The Assessor’s Office also offices a FAQ page to address specific questions about your property tax amount.
Important information to know when moving to Chicago, IL
Chicago’s cost of living is extremely high at 22% above the national average. It is also in the top 2% of the most expensive cities in the world. Chicago is also popular with tourists, with 30.7 million visitors in 2021, an 86% increase in tourism from 2020. While the increase can be attributed to a boom in post-pandemic travel, Chicago has always been a hot spot for tourism.
Shopping in Chicago gets expensive. Chicago’s sales tax is 10.25%, with the Illinois sales tax rate of 6.25%.
You can expect your property to be assessed every three years. If you believe an error was made in calculating your property taxes, you must contact the Cook County Board of Review and fill out the online form.
Due dates for property taxes have varied depending on the year, but most due dates for property taxes occur in March and October. You can expect the first installment of taxes to be due between March through May. The second installment is due between October and December. Keep an eye out on the Cook County websites for the most accurate due dates for your own taxes.
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