Residential Property Tax Exemptions
Here are some common types of residential property tax exemptions:
Homeowners ExemptionThe Homeowners exemption is available to owners of single family homes, condominiums, cooperatives and apartment buildings of six units or less. The property must have been occupied by its current or previous owner as his or her principle residence on January 1st of the year for which the exemption is granted. This exemption reduces the home's Equalized Assessed Value (EAV) by $7,000.
Homestead (Senior) ExemptionTo be eligible for the Homestead Exemption, which will reduce your equalized, assessed value by $5,000, you must meet the following eligibility requirements:
- You or your spouse must be 65 years old or older during the year for which you are applying for the exemption.
- As of January 1st of that year, you must either own the property or have a lease or contract making you responsible for the property taxes.
- As of January 1st of that year, the property must be your principle residence.
Senior Citizen Assessment FreezeThis exemption freezes the assessed value of your home for one year, reducing the rate of growth of your property taxes.
Applicants must meet the following requirements to be eligible for this exemption:
- The property must be your principle place of residence during the entire year of the assessment freeze or have a lease or contract making you responsible for the property taxes.
- You or your spouse must be 65 years old or older during that year.
- Your total household income cannot have exceeded $55,000 in the year prior to the year for which you wish the assessment freeze.
Returning Veterans' Homestead ExemptionVeterans returning from active duty in armed conflict are eligible to receive a $5,000 reduction in the equalized assessed value (EAV) of their property only for the taxable year in which they return.
To qualify the veteran must be:
- An Illinois resident who has served as a member of the U.S. Armed Forces, Illinois National Guard or U.S. Reserved Forces,
- Be returning from active duty in an armed conflict involving the armed forces of the U.S.,
- Owned or had a legal or equitable interest in the property and used it as a principle place of residence on January 1st of the tax year in question, and
- Be liable for the payment of property taxes.
Disabled Veterans' Standard Homestead ExemptionVeterans with a service-connected disability as certified by U.S. Department of Veteran Affairs are eligible for this annual exemption. A disability of at least 30%-49% is eligible for a $2,500 exemption in equalized assessed value (EAV). A disability of at least 50%-69% is eligible for a $5,000 EAV. New for the 2015 property tax year, a disability of 70% or higher will be exempt from property taxation
To qualify the veteran must be:
- An Illinois resident who has served as a member of the U.S, Armed Forces on active duty or on active duty in the state of Illinois, Illinois National Guard, or U.S. Reserve Forces and has been honorably discharged,
- Have at least a 30% service-connected disability certified by the U.S. Department of Veteran Affairs,
- Own and occupy the property as the primary residence of January 1st of the tax year in question, and
- Have a total EAV of less than $250,000 for the primary residence, excluding the EAV of property used for commercial purposes.
Disabled Persons Homestead ExemptionThis exemption provides disabled persons with an annual $2,000 reduction in the equalized assessed value (EAV) of the property.
To qualify the applicant must be:
- Disabled or become disabled during the assessment year
- Own or have a legal or equitable interest in the property, or a leasehold interest of a single-family residence
- Occupy the property as the principle residence on January 1st of the tax year in question
- Be liable for the payment of property taxes
Homestead Improvement ExemptionThis exemption protects you from being assessed for four years on the first $75,000 of improvements you make on your principle residence. The Homestead Improvement Exemption should be granted automatically by the County Assessor.