Tax Breaks for Illinois Homeowners

Feel like you’re paying way too much in property taxes? If you’re an Illinois homeowner, you probably are. The Land of Lincoln has the second-highest property taxes in the country. 

The statewide average of 2.16% is nearly double the national average and translates to a typical annual property tax bill of $4,527 for Illinois homeowners. 

If you’re not ready to pack up and move out of state to avoid Illinois’ robust property taxes, there are tax breaks available to Illinois homeowners that will help you reduce your yearly payments. 

1. The Family Relief Plan

Illinois’ 2023 state budget includes relief for homeowners in the form of the Illinois Family Relief Plan. 

Through this plan, homeowners will get either 5% of their property taxes paid or a $300 rebate check, whichever is less. 

There are qualification requirements including income limits. Learn more about the Family Relief Plan by visiting the Center for Illinois Politics. 

2. Homeowners Exemption

A Homeowners Exemption reduces the Equalized Assessed Value (EAV) of a property by $10,000. 

You may be eligible for this exemption if you’ve occupied the property as your primary residence for the entire year preceding your tax bill. You can also apply to have the tax exemption applied retroactively to previous years’ tax bills. 

To learn more and to apply, visit your county’s Assessors Office website.

3. Senior Exemption

Homeowners born in or prior to 1955, who own or have a lease contract on their property, and are responsible for paying the property’s taxes on a property that’s been used at their primary residence may qualify for a Senior Exemption. 

The Senior Tax Exemption reduces the EAV of a property by $8,000. 

If you also have a total household income of $65,000 or less for the previous tax year you may qualify for a Senior Freeze Exemption. The Senior Freeze Exemption freezes the EVA of an eligible property. 

Learn more and apply by visiting your county’s Assessors Office website. 

To learn more about tax exemptions in your area contact your local real estate agent.