Don’t forget to apply for your homeowner’s or senior citizen homeowner’s exemption to save money on your property taxes! You can’t apply until January 1 in the year AFTER you’ve purchased your home.
Therefore, if you closed on your home in October 2023 you can’t apply for the homeowner’s exemption until January 1, 2025. Remember, taxes are paid one year late (in arrears) here in Chicago. If you bought your home in 2024, you can file the exemption as of January 2026. We know; it’s incredibly confusing.
Who can apply?
Cook County homeowners who plan to reside in the property as their primary residence. Investors who own, but are not living in the property may NOT apply.
What are my options?
There are currently four exemptions that must be applied for or renewed annually: The Homeowner Exemption, Senior Citizen Homestead Exemption, Senior Citizen Assessment Freeze Exemption, and the Home Improvement Exemption.
1. Homeowner Exemption
Taxpayers whose single-family home, townhouse, condominium, co-op or apartment building (up to six units) is their primary residence can save $250 to $2,000 per year, depending on local tax rates and assessment increases. First-time applicants must have been the occupants of the property as of January 1 of the tax year in question. https://www.cookcountyassessor.com/homeowner-exemption
2. Senior Citizen Homestead Exemption
Seniors can save up to $250 a year in property taxes, and up to $750 when combined with the Homeowner Exemption. The applicant must have been 65 years of age or older during the year for which you are applying. https://www.cookcountyassessor.com/senior-citizen-exemption
3. Senior Citizen Assessment Freeze Exemption
Qualified senior citizens can apply for a freeze of the assessed value of their property. Over time, in many areas, this program results in taxes changing minimally and often decreasing as surrounding properties continue to rise in assessed value. This is the most valuable homeowner exemption program. The value increases over the years as it eliminates the impact of regular reassessment increases that may occur every three years.
4. Home Improvement Exemption
Homeowners can make up to $75,000 worth of property improvements without an increase in property taxes for at least four years. The value varies depending on the reduction of the assessed value and the tax rates where the property is located.
Do I need to renew my exemption each year?
The Cook County Assessor’s Office now automatically renews Homeowner Exemptions for properties that were not sold to new owners in the last year, however, I advise checking with their office every year to make sure your exemption was renewed as I have had clients whose exemptions were not automatically renewed.
Who do I contact to apply for an exemption?
This program is administered by the Cook County Assessor’s Office. New owners should apply to:
Cook County Assessor’s Office
118 North Clark Street, Room 320
Chicago, IL 60602
312.443.7550
You can also find applications and additional information at: www.cookcountyassessor.com
There are also several state and city programs now available.
Senior Citizen Tax Deferral
The household income limit to participate in this program has increased to $55,000. This program works like a loan from the State of Illinois to qualified senior citizens, with an annual interest rate of 6%. Any portion or all (up to $5,000 per year) of the tax may be deferred until the house is sold or until the death of the taxpayer. To apply, contact the Cook County Treasurer’s Office at 312.443.5100. https://www.cookcountytreasurer.com/theseniorcitizenrealestatetaxdeferralprogram.aspx
Disabled Veteran Homestead Exemption https://www.cookcountyassessor.com/veterans-disabilities-exemption Administered through the Illinois Department of Veteran’s Affairs. Call 312.814.2460.
updated 2/25/22 dm
