Does Florida Have Property Taxes? (2026 Tax Guide)
Does Illinois Have Property Tax?
Yes, Illinois does have property taxes, and they are a significant factor for any homeowner to consider. While the state has been working on various relief measures, Illinois currently has some of the highest property tax rates in the country. Because the state government does not collect a statewide property tax, these funds are managed by nearly 7,000 local taxing districts to fund everything from public schools and libraries to park districts and mosquito abatement.
As we move through 2026, the Illinois tax landscape is undergoing a major shift in how it protects long-term residents. With new legislation recently signed into law, the state has aggressively expanded the "safety net" for seniors and disabled veterans to counter rising home valuations. For anyone looking to buy in 2026, the key is understanding how to navigate these local exemptions to bring your effective costs closer to the national average.
To help you plan your budget this year, here are four key factors shaping Illinois property tax in 2026.
1. The 2026 Expansion of the Senior Assessment Freeze
The biggest news for Illinois property tax in 2026 is the implementation of Public Act 104-0452 (formerly SB 642). This law provides a massive expansion to the Low-Income Senior Citizens Assessment Freeze. For the 2026 tax year, the maximum household income limit to qualify has been raised from $65,000 to $75,000.
According to the Illinois Department of Revenue, this program "freezes" the assessed value of your home, preventing your tax bill from skyrocketing even if property values in your neighborhood surge. By raising the income cap, thousands of additional Illinois residents now qualify for protection against the state's high appreciation rates.
2. Understanding the "Multiplier" (Equalization Factor)
A unique aspect of Illinois property tax is the state equalization factor, often called the "multiplier." Because different counties can have varying assessment practices, the state applies a multiplier to ensure every county is assessing property at exactly 33.33% of its fair market value. In 2026, this factor remains a critical component in calculating your final bill, especially in Cook County.
For example, if your local assessor undervalues properties, the state multiplier will increase your "Equalized Assessed Value" (EAV). When researching illinois property tax rates, it is vital to look at the EAV rather than just the raw assessment. You can check your county’s current multiplier through the IDOR Tax Rate Finder to get a more accurate estimate of your 2026 obligations.
3. 2026 Homestead Exemption Brackets
Illinois offers several "Standard" Homestead Exemptions that provide an immediate reduction in your home's EAV. For 2026, the General Homestead Exemption provides a reduction of up to $10,000 in Cook County and $6,000 in most other counties. This is an annual reduction that applies as long as the property is your principal residence.
For disabled veterans, the 2026 protections remain among the strongest in the nation. Veterans with a service-connected disability of 70% or more are typically exempt from paying property taxes on their primary residence entirely. As noted in the 2026 Legislative Summary, these exemptions are designed to keep homeownership accessible even in areas with high local tax levies.
4. The PTELL "Tax Cap" Protections for 2026
While Illinois is known for high rates, many counties are protected by the Property Tax Extension Limitation Law (PTELL). Often called "tax caps," this law limits the amount of total tax revenue a local district can request to 5% or the rate of inflation, whichever is lower. For the 2026 tax year (based on the 2025 levy), the Illinois Department of Revenue has set the CPI inflation factor at 2.7%.
It is important to note that PTELL does not cap your individual bill, but it does restrict how much local governments can grow their budgets. This ensures that while your Illinois property tax may be high, it won't grow at an uncontrolled rate. Most counties in the Chicago metro area are subject to these caps, providing a layer of predictability for suburban buyers.
Is Illinois a High Property Tax State?
There is no way around it: Illinois has the second-highest property tax rate in the U.S., with an average effective rate of 2.07%. However, for those who qualify for the newly expanded 2026 Senior Freeze or the robust Veteran exemptions, the actual out-of-pocket cost can be significantly lower. For buyers in 2026, the secret to success is choosing your specific "taxing district" wisely and ensuring you file all homestead paperwork by your county's deadline to maximize your savings.
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