Illinois Property Tax
While the federal tax brackets are the same across the board (based on your filing status), state taxes are another story. In addition to state income taxes, any individual who owns real property is subject to state property taxes. This article covers Illinois real property taxes. Read on to gain knowledge in this tax area…
What is Real Property Tax?
Real property tax is a system of taxation that requires owners of land and buildings to pay an amount of money based on the value of their land and buildings.
If you own real property in Illinois, you are required to pay taxes on it. Even if the property was gifted to you through an estate or you own a rental real property, you are still required to pay it.
There is no minimum or maximum amount to pay on your real property in Illinois to pay property taxes.
What is the Illinois Property Tax Rate?
Illinois has the second highest real property taxes in the country at an average tax rate of 2.31%. The national average is half that. The typical homeowner in Illinois pays $4,157 annually in real property taxes, according to SmartAsset.com, while nationally the average is $3,498 per household, according to ATTOM Data Solutions.
There’s not a set real property tax rate in Illinois. Instead, the tax bill is based on two factors:
- The equalized assessed value (EAV) of your real property
- The amount of money your local taxing districts need to operate during the coming year
Most Illinois real property is assessed at 33.33% of its fair market value.
What Are Illinois Property Taxes Used For?
The money collected by Illinois is used for multiple public services throughout the state, like:
- First responders and other law enforcement
- General government services
- Local levies
- Municipal infrastructure and land construction or improvements
- Municipal employees’ pay
- Resident services like garbage pickup
- Recreational services
- Protective services
How Do You Pay?
If you pay your mortgage, you can set up your real property tax to be taken out of escrow. Your payment includes:
- Homeowner’s insurance
- Illinois real property taxes
Look at your current mortgage statement to view your Illinois real property taxes paid.
You can also elect to pay your Illinois real property taxes online or via phone. You will want to look up the Illinois county treasurer, versus Illinois Department of Revenue.
View more information from the Illinois Department of Revenue at https://www2.illinois.gov/rev/Pages/default.aspx.
When Do You Have to Pay?
Contact your county treasurer for Illinois payment due dates. In most counties, real property taxes are paid in two installments, usually on June 1 and September 1.
Where to Go for State Property Tax Help
Gauging how the real property tax is calculated and the proper amount is important, otherwise, you may be paying too much, too little, or not at all. Beyond this, there is a federal real estate tax deduction you may be able to take. (See SALT deduction for more details.)
If you’re looking for additional support with your Illinois real property tax questions, look no further than H&R Block Virtual. We’ll pair you with a tax pro with state-specific expertise. You can have your taxes done by a real tax pro without visiting an office.
Prefer a different way to file? No problem – you can find Illinois state tax expertise with all of our ways to file taxes.
Do you earn a wage in Arkansas? Get all your questions answered about Arkansas tax rates and brackets, with insights from the experts at H&R Block.
Find out if you can claim gas expenses on your taxes with the tax experts at H&R Block. See if you are eligible for the standard mileage deduction.
How can you deduct tuition and get your continuing education tax credit? Learn more from the tax experts at H&R Block
Wondering what a tax accountant is? What about a tax attorney or tax agent? Find out the differences between these tax experts and when you might need them.