Illinois Property Tax Overview

Keywords: Illinois property tax, property tax in Illinois, Illinois property tax rate

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Key Statistics (2026)

*Effective tax rate = (annual property tax ÷ home value) × 100.
**Based on the median home value and the average effective tax rate.

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

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Sample Property‑Tax Calculations

Using the average effective tax rate of 2.07 %:

These figures are illustrative; actual bills depend on the exact assessed value, local millage rates, and any exemptions that may apply.

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How Illinois Property Tax Rates Vary

• County differences: Each of Illinois’ 102 counties sets its own tax levies for schools, municipalities, townships, and special districts. Consequently, the effective tax rate can differ substantially from one county to another.
• Municipal and district overlays: Within a county, individual cities, villages, and special districts (e.g., fire protection, library districts) may add additional millage.
• Assessment practices: Illinois assesses property at a percentage of market value (typically 33 % for residential property), but the percentage can vary for other property classes.

Because of these layers, the statewide average of 2.07 % is a useful benchmark, but taxpayers should consult their local assessor’s office for precise rates.

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Comparison to the National Average

• The national average effective property tax rate is 0.97 %.
• Illinois’ rate of 2.07 % is 114.06 % higher than the national average, placing the state near the top of the national ranking (ranked #51 of 52 states and territories).

This disparity reflects Illinois’ reliance on property taxes to fund local services, particularly public education.

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Implications for Specific Groups

Retirees

• Tax burden: Higher property taxes can increase the overall cost of living for retirees who own homes.
• Exemptions: Illinois offers a Senior Citizens Homestead Exemption that reduces the taxable value for eligible homeowners (age 65 + and meeting income criteria). The exemption can lower the effective tax rate but does not eliminate it.

Landlords

• Revenue considerations: Rental income is generally subject to state income tax, while property taxes are passed on to tenants through lease agreements.
• Tax deductions: Landlords can deduct property‑tax expenses on federal and state income returns, which may offset the higher nominal rates.

Both groups should evaluate the net effect of property taxes in the context of other state taxes and available exemptions.

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Frequently Asked Questions

1. How is the effective property tax rate calculated?
The effective rate equals the annual property tax bill divided by the market value of the property, expressed as a percentage. For example, a $5,179 tax bill on a home valued at $250,500 results in an effective rate of about 2.07 %.

2. Are there statewide caps on property‑tax increases?
Illinois has a Property Tax Extension Limitation (PTEL) that limits the annual increase of a property’s assessed value to the lesser of 5 % or the percentage change in the consumer price index. However, the actual tax bill can still rise if local millage rates increase.

3. Where can I find my local tax rate?
County assessors and municipal finance departments publish current millage rates and tax bills on their websites. The Illinois Department of Revenue also provides a searchable database of property‑tax information by county and municipality.

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Summary

Based on the most recent ACS estimates (2026), Illinois’ average effective property tax rate of 2.07 % is more than double the national average, resulting in a median annual tax of roughly $5,189 on a median home valued at $250,500. Tax rates vary by county and local jurisdictions, and specific exemptions (e.g., for seniors) can modify the effective burden. The higher tax environment influences cost considerations for retirees and landlords, though deductions and exemptions may mitigate some impact.

All data referenced are from the U.S. Census Bureau’s American Community Survey (ACS) 5‑year estimates for 2023.