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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As an enthusiast with a comprehensive understanding of the real estate landscape in Chicago, particularly regarding property taxes, I bring forth a wealth of knowledge to shed light on the intricacies involved. My expertise is grounded in both theoretical insights and practical experiences within the real estate market in Chicago.
Property Tax Rates in Chicago for 2022: Chicago's vibrant culture, iconic landmarks like the Cloud Gate Sculpture, and its status as a hub for arts, education, and sports, make it a unique real estate market. However, the prominence of Chicago in these aspects is accompanied by some of the highest property tax rates in the nation. Illinois, as a state, holds the second position for the highest property taxes, and Chicago's rates hover around 6.697% for single-family homes. The property tax bill varies but typically falls between $2,500 and $6,388, depending on the location within the city. Suburbs surrounding Chicago exhibit even higher rates, ranging from 9.938% to 13.068%, with property taxes averaging between $5,981 and $7,538.
To determine precise property tax rates, individuals can visit the Cook County Treasurer’s website and enter their property PIN number or address for a detailed overview.
Property Tax Projections for 2023: The prospect of rising property taxes is a perpetual concern in Chicago, historically increasing by 2.5% annually to cover various city costs, notably the contentious city pension coverage. Despite the initial proposal for a 2.5% Consumer Price Index (CPI) hike in the 2023 Chicago Forecast Budget, unexpected revenue has led to Mayor Lightfoot revising the $16.4 billion budget, eliminating the need for a property tax rate increase in 2023. However, certain areas in Chicago are slated for property reassessments, potentially leading to increased property taxes for homeowners even if the rate remains the same.
Tax Rates in Surrounding Areas: To mitigate the impact of high property taxes, individuals can explore areas near Chicago and Cook County. Some general averages include Algonquin at 5.65%, Wheaton at 6.63%, Aurora at 7.81%, Naperville at 5.99%, and Rockford at 9%. This provides prospective buyers with insights into the wide range of property tax rates in different locations within Illinois.
Property Tax Revenue Allocation in Chicago: Local property taxes, collected by Cook County, play a pivotal role in funding essential services and programs in the area, such as police departments, fire stations, street maintenance, libraries, public schools, metro stations, and community health centers. However, a significant portion—80% in 2022—contributes to city pensions, a trend expected to persist in 2023.
Important Considerations for Those Moving to Chicago: Chicago's cost of living is notably high, surpassing the national average by 22% and ranking among the top 2% of the most expensive cities globally. With a surge in tourism, reaching 30.7 million visitors in 2021, Chicago remains a sought-after destination. However, residents should be mindful of the sales tax, standing at 10.25%, with the Illinois sales tax rate at 6.25%.
Property assessments occur every three years, and if discrepancies are suspected in the calculation of property taxes, individuals must contact the Cook County Board of Review. Due dates for property taxes vary, but most fall between March and May for the first installment and October and December for the second installment.
In conclusion, a nuanced understanding of Chicago's real estate dynamics, especially concerning property taxes, is crucial for individuals navigating this market. Stay informed, leverage online resources, and consider professional assistance to make informed decisions in this dynamic real estate environment.
