How are property taxes determined in Illinois?

On Behalf of | May 27, 2022 | tax law | 0 comments

While the formula for figuring out property taxes is complex and difficult to understand, there are four main elements to property tax calculations.

The tax rate for your area, the value of your home, an equalization factor, and the exemptions that may affect your home are all factors in determining the property taxes you owe.

1. The tax rate for your area

Each year the government figures out the amount of property tax it will need in order to achieve funding for the public services it provides. This number determines the aggregate tax rate for each area. Your location in your county determines your tax code.

2. The assessed value of your home

County assessors determine the fair market value of your home (what it could sell for) while considering the specific qualities of your home, such as the size, location and age of your home in addition to recent improvements or renovations. Depending on where you live, assessors use a percentage of the market value to determine the assessed value. Reassessments occur every few years.

3. Equalized assessed value

They then apply an equalization factor to the assessed value of each home to determine the equalized assessed value.

4. Exemptions

Each county has a list of exemptions that may lower the overall property taxes owed by each homeowner. There are senior citizen exemptions, disability exemptions, military exemptions as well as an exemption if you use your property as your primary residence.

With these factors determined, your tax bill comes down to a math problem. Subtract any exemptions you qualify for from the equalized assessed value of your home. The remaining amount is then multiplied by the aggregate tax rate for your area, resulting in your tax bill.