How are property tax amounts calculated?
This process is explained in the video links below:
Determine the Assessed Value:
In Illinois, the assessed value of a residential property is typically one-third of its market value. For example, if your home is valued at $300,000, the assessed value would be $100,000.
Find the Local Tax Rate:
Property tax rates vary by location and are expressed as a percentage. You can find the tax rate listed on your tax bill. The tax rate is applied to the assessed value to calculate the property tax owned.
Apply Exemptions:
Illinois offers several exemptions that can reduce your property tax burden. The General Homestead Exemption provides a $6000 reduction in assessed value. Additionally, the Senior Citizens Homestead Exemption offers further reduction for homeowners aged 65 and older.
Calculate the
Property Tax:
Use the formula:
Property Tax = Assessed Value x Tax Rate
For example, if your assessed value is $100,000 and your local tax rate is 2%, your property tax would be:
Property Tax = 100,000 x 0.02 = $2,000
