Illinois has a complex tax system when it comes to real property and real estate. Broken up over individual townships, taxes can vary quite widely from one town to another. Only New Jersey has higher property taxes on average, and navigating this complex web of rules and organizations can be hard for new residents and natives alike. Cook County may make headlines for outlandish spikes in property values and taxes, but the rest of Illinois is not immune to these extreme costs.
All property in Illinois, outside of Cook County, is assessed every four years. This assessed value then acts as the basis for taxes levied until the next cycle, making it imperative to get it right. In this article, we will break down the basics of Illinois, highlighting some of the issues that need to be addressed. This will focus on everything outside of Chicago and Cook County. We have an article dedicated to that particular part of the state. This is for every other county and township in the great state of Illinois.
The Tax Process
Properties in a given township are first appraised by the local assessor. As stated above, this is done every four years in Illinois. Illinois will not launch another reevaluation cycle until 2027. The assessor only values the property, without regard for the tax rate, which is out of their hands. This makes the value of a property the key metric on which the whole system operates. Property taxes cannot be changed by an owner’s protest, but the base value of a home certainly can be.
This assessed value will then be multiplied by the state-mandated assessment ratio of 33.33%. This figure is crucial, as the entire property tax system in Illinois is based around this 33.33% figure. Illinois requires that all properties, with the exception of farmland, be assessed at this ratio. To ensure that all properties are equally assessed, there is Illinois’ most confusing tax variable yet, the equalization factor.
Equalization Factor
Decided by the Illinois Department of Revenue, the equalizer factor is a multiplier that will guarantee that all property is equally shared among taxing entities. This leaves an equalized appraised value that is then multiplied by the tax rate to come to a final tax levy.
To put this in mathematical terms, let’s look at a property that was assessed for $50,000, in a county with a tax rate of 10% and an equalizer of 2.2.
- 50,000 x 33.33% = 16,665
- 16,665 x 2.2 = 36,663
- 36,663 x 10% = 3,666.3
This would result in a final property tax of $3,663.30
The Reassessment Cycle
It should now be easy to understand that property values are the source by which the whole property tax system is spawned. While tax rates are out of the hands of both assessors and homeowners, the value of properties is a viable target. This puts much emphasis on the reevaluation of property, which can make-or-break the affordability of a tax bill. Valuations need to be correct for the benefit of both the property owner and the township or county that depends on revenues.
When a township is scheduled for assessment, the local assessor will gather the estimated value of all properties in the assigned region. This is where they will try to figure the true market value of all real property, formulating a number for each parcel of land in the township. These mass evaluations use previous real estate sales to value each similar property. These values are then given to taxing entities, where an appropriate tax rate can be made. This reevaluation period is when the base cost of a property will be settled for the next four years.
While mass evaluations are cyclical, individual properties can still find their values change thanks to major improvements to a property. Equalization can also increase every year, even in those with no ongoing evaluations. These can both leave property owners with a nasty surprise in their mailbox.
Value and Texas Raised Beyond Assessment
The rest of Illinois may not have the unfathomable taxes that Cook County does, but being assessed only once every four years can still be a disadvantage to taxpayers. Property values can be stuck in a previous housing market or economy, leaving landowners paying for property that is now appraised well-ahead of actual market value. It also means that errors can go undetected for years as counties wait for the next reassessment to roll around. This puts the issue of unequal appraisal solely in the hands of Illinois taxpayers.
Taxing entities and counties can also raise tax rates on these overinflated values. Counties can increase their taxes every year to help balance their budgets, meaning that once they are saddled with an incorrect valuation, taxpayers must keep paying incorrect levies to the county. This can be compounded further by the fact that the equalization factor is applied annually and is constantly in flux. At best, this allows taxes and values to creep up every year, at worst it could mean big jumps in tax bills. To complicate things further, a taxpayer will not be notified of these changes until they receive their bill.
Illinois Property Taxes and Appeals
Due to the glacial nature of appraisals, the high tax rates, and the ability of counties to change rates every year, an Illinois property owner must be vigilant. Property tax protests are key to keeping counties honest, both during a reassessment, and after it. The only person looking out for the bottom line of the average person is the taxpayer themselves. There are several levels of recourse open to property owners, including assessor-level appeals, appeals to the Board of Review (BOR), and hearings before the Property Tax Appeal Board.
O’Connor Can Help
While many property tax firms focus only on Cook County, O’Connor is here to guide all Illinois taxpayers to their best appeal outcome. For 50 years, O’Connor has been one of the leading voices opposing tyrannical taxes against the common people. After being founded in Texas, O’Connor moved into Illinois over 20 years ago. With some of the most oppressive and outlandish property taxes in the United States, Illinois is a battlefield that we simply could not resist.
Illinois seems to revel in its complexity and obtuse tax codes. With multiple tax bills a year, big reassessments, the equalization factor, and appeal deadlines that vary by the township, the people of Illinois need all the help they can get. Best of all, O’Connor will protest your property values every year, even when a reassessment is not taking place. There is a window to appeal every year, and O’Connor will be sure to represent you as soon as one opens.
About O’Connor:
O’Connor is one of the largest property tax consulting firms, representing 185,000 clients in 49 states and Canada, handling about 295,000 protests in 2024, with residential property tax reduction services in New York, Texas, Illinois, and Georgia. O’Connor’s possesses the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs a team of 1,000 worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.
Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™. There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.