Understanding Illinois Property Tax Exemptions: Who Qualifies and How Much You Can Save

Property taxes in Illinois are among the highest in the nation, but homeowners can take advantage of various property tax exemptions to lower their tax burden. These exemptions reduce the taxable value of your home, ultimately lowering the amount you owe in property taxes. Whether you’re a senior, a veteran, a homeowner with disabilities, or simply own a primary residence, Illinois offers several exemptions to help ease the financial strain. Knowing which exemptions you qualify for can result in significant savings each year.

One of the most common exemptions is the General Homestead Exemption (GHE), which applies to homeowners who occupy their property as their primary residence. This exemption reduces the assessed value of the home by up to $10,000 in Cook County and $6,000 in other counties, directly lowering the tax bill. Seniors aged 65 and older can benefit from the Senior Citizens Homestead Exemption, which further reduces the assessed value by $8,000 in Cook County and $5,000 elsewhere. Additionally, the Senior Citizens Assessment Freeze helps eligible seniors keep their home’s assessed value from increasing, ensuring their property taxes remain stable even if home values rise.

Veterans and homeowners with disabilities also receive valuable tax relief. The Disabled Persons’ Homestead Exemption provides a $2,000 reduction in the assessed value, while the Disabled Veterans’ Exemption offers reductions ranging from $2,500 to a full exemption, depending on the disability rating. Similarly, returning veterans can claim a $5,000 exemption on their home’s assessed value for the year they return from active duty. These exemptions can translate to thousands of dollars in property tax savings each year, making homeownership more affordable for those who qualify. Homeowners should check with their local assessor’s office to apply and ensure they’re taking full advantage of these valuable tax breaks.