Average Illinois property tax bill rises $756 in 5 years

Homeowners in half of Illinois’ 102 counties saw their property taxes grow faster than inflation from 2018 to 2022. The median bill rose $756 in that time.

The typical Illinois homeowner is paying $756 more in property taxes than five years ago, and it’s not just inflation: half of Illinois’ 102 counties saw their bills rise faster than the cost of living.

Homeowners across 61 Illinois counties saw their property taxes grow faster than inflation from 2018 to 2022, with the worst-off homeowners seeing a 75% spike in the median property tax bill.

The biggest jump was for Lake County homeowners, where the median increased by $1,262. Tax hikes were less in rural counties, especially those farthest from Chicago.

Illinoisans already paid the second-highest property tax rate in the nation in 2022.

The typical Illinois homeowner paid about $5,055 in property taxes – more than homeowners in any other Midwest state and more than double the typical American homeowner’s $2,457 bill, according to the most recent census data for 2022. Illinois homeowners paid more in median property taxes in 2022 than the typical homeowner in Alabama, West Virginia, Arkansas, Louisiana and South Carolina – combined.

Census data also shows homeowners living in every one of Illinois’ border counties would see their property tax bills reduced by moving to a similar value home in a neighboring county across the state line. On average, these homeowners would have saved about $1,595 in property taxes in 2022.

In Illinois, a homeowner’s property tax bill is based on two factors: the assessed value of the property and the amount of revenue local taxing districts seek to raise.

Schools levy most of the property taxes – about two-thirds across Illinois. Illinois has nearly 7,000 local government units with the power to demand property taxes, far more than any other state.

These local entities, from airport authorities to forest preserves to fire-protection districts, all levy property taxes that are layered atop one another – making the total property tax bill for Illinoisans more expensive and less transparent.

A growing share of property taxes have gone to government pensions, which continue eating more school and local government resources. Illinois ended the 2023 fiscal year with an estimated $211 billion in unfunded state and local pension liabilities. That is about half funded – the nation’s worst funding ratio and biggest pension debt. It is at a level between what experts warn is “deeply troubled” and “past the point of no return.”

Think property taxes don’t matter to you because you rent? Wrong. Landlords pass on property tax costs through higher rent, so property taxes can significantly impact the affordability of housing for both homeowners and renters.

Illinois has lost population for 10 years in a row – a total loss of 548,916 people and most because of moves to other states. Over 50% of Illinois voters polled cited high taxes as the main reasons why they would move out of state if given the chance. Lawmakers need to act now to curb these costs for the future and incentivize more Illinoisans to stay.

A “hold harmless” pension reform plan, such as one developed by the Illinois Policy Institute and based loosely on bipartisan 2013 reforms, could help eliminate the state’s unfunded pension liability and reduce homeowners’ property tax payments over time while providing retirement security for pensioners.

With nearly 3-in-5 Illinoisans believing the value of public services they receive are not worth the property taxes they pay, lawmakers should be pursuing structural reforms that will keep Illinoisans in Illinois.