How is illinois property tax calculated

The calculation is pretty simple, but determining the components and how they can change and how they impact the property tax bill is more complicated.

In Illinois, real estate assessments have been lowered. However, as many have found out, reduced assessments do not mean reduced property tax bills. Property taxes are not like income taxes. With income taxes, if a taxpayer earns less money, he or she pays less income tax and the government gets that much less money. Did you know that, as of , Illinois residents paid the second-highest property taxes in the U.

That stat comes courtesy of a report brought to our attention by the Chicago Tribune , which found that Illinois came only behind New Jersey in terms of property taxes. Property taxes are collected by state and local governments, and go toward any number of essential functions, including providing funding for schools, infrastructure, public works projects, first responders, and more.

In large part, this is because the process that is used to determine what someone pays in property taxes can be dense, and difficult to understand. For a more in-depth discussion of property taxes, including understanding your unique property tax situation, you may want to reach out to our team directly to continue the conversation.

In a free consultation, it may prove much easier to explore the nitty gritty details, provide concrete examples, and discuss questions and concerns unique to your household. Please note that The Gunderson Law Firm is not offering financial advice. This post is intended exclusively for informational purposes, and online readers should not act or decline to act based on content from this site, without first consulting an appropriate professional.

To start understanding your property tax payments, you have to consider the big picture. For Illinois residents, the property tax process begins when your local government determines its budget, and how much funding it needs for various taxing bodies and organizations such as school districts, fire departments, forest preserves, special projects, and so on.

Once the government has determined the amount of property taxes that it needs to levy in a certain year to achieve funding, based on information from various taxing bodies, this information is used to help determine the aggregate tax rate you will face as a homeowner in your area. So, broadly speaking, the specific tax rate for your area is determined by the total tax base in a designated area, as compared to the amount of revenue that all of the relevant taxing bodies require.

Different parts of the county are under jurisdiction of different combinations of taxing districts. Exemption : A reduction in the assessed value of a property. Will County offers many exemptions, click here for a complete listing. Levy : The amount of money a taxing body certifies to be raised from property tax. Market Value : The most probable sale price of a property in a competitive and open market. Tax Code : A number used by the County Clerk that refers to a specific combination of taxing districts.

Tax Rate : The figure multiplied by the equalized assessed value to determine the total amount of tax due.