Property Tax Relief - Homestead Exemptions
General Homestead Exemption (GHE)
This annual exemption is available for residential property that is occupied as the principal dwelling place of the owner, or a lessee with a legal or equitable interest in the property with a single-family residence, who is liable for the payment of the property taxes on the leased property. The amount of exemption is the increase in the current year’s equalized assessed value (EAV), above the 1977 EAV, up to a maximum of $5,000. The General Homestead Exemption is available in all counties except Cook County and may be granted automatically or may require an initial application to be filed with the chief county assessment office. Public Act 95-644 that passed into law in 2007 increases the maximum limit to $5,500 for the 2008 tax year (property taxes paid in 2009) and to $6,000 for 2009 tax year (property taxes paid in 2010). For information and to apply contact the Chief County Assessment Office.
Alternative General Homestead Exemption (AGHE) – Cook County Only
In Cook County, owner-occupied residences may be eligible for an Alternative General Homestead Exemption (AGHE), also known as the 7% expanded homeowner exemption. This exemption limits the increase of a property's EAV to 7% each year which is applied as an expanded version to the General Homeowner Exemption. The exemption amount will vary each year from the minimum amount calculated for the GHE up to a maximum amount that is based on the property’s annual increase in EAV and its general assessment year. The exemption is limited to the amount of the GHE for properties that receive the Senior Citizen Assessment Freeze Homestead Exemption. Public Act 95-644 that passed into law in 2007 extends the exemption in Cook County for the City of Chicago until 2008, North Suburbs until 2009, and South Suburbs until 2010. For information and to apply contact the
Cook County Assessor's Office.
Long-time Occupant Homestead Exemption (LOHE) – Cook County Only
Public Act 95-644 that passed into law in 2007 created a new homestead exemption for counties that are subject to the AGHE (currently only in Cook County). The new exemption is in effect in Cook County beginning with 2007 tax year for residential property that is occupied as a primary residence for a continuous period by a qualified taxpayer with a total household income of $100,000 or less. The property must be occupied for 10 continuous years or 5 continuous years if the person receives assistance to acquire the property as part of a government or non-profit housing program. This exemption limits EAV increases to a specific annual percentage increase that is based on the total household income of $100,000 or less. A total household income of $75,000 or less is limited to a 7% annual percentage increase in EAV or a total household income of over $75,000 to $100,000 is limited to a 10% annual percentage increase in EAV. The minimum limit is the same amount calculated for the GHE with no maximum limit amount for the exemption. Properties cannot receive both the LOHE and the AGHE, GHE or SCAFHE. Properties that qualify for the SCAFHE will receive the same amount calculated for the GHE. For information and to apply contact the
Cook County Assessor's Office.
Disabled Persons’ Homestead Exemption
Public Act 95-644 that passed into law in 2007 created a new homestead exemption for disabled persons beginning with the 2007 tax year (property taxes paid in 2008). This exemption is an annual $2,000 reduction in EAV of the primary residence that is owned and occupied by a disabled person who is liable for the payment of property taxes. Initial application Form PTAX‑343 Application for Disabled Persons’ Homestead Exemption along with the required proof of disability must be filed with the chief county assessment office. The exemption, must be renewed each year by filing the Form PTAX-343-R, Annual Verification of Eligibility for Disabled Persons’ Homestead Exemption, with the Chief County Assessment Office. For a single tax year, the property cannot receive this exemption and the Disabled Veterans’ Homestead Exemption or Disabled Veterans’ Standard Homestead Exemption.
Disabled Veterans’ Homestead Exemption
This exemption may be up to $70,000 of the assessed value for certain types of housing owned and used by a disabled veteran or his or her unmarried surviving spouse. The
Illinois Department of Veterans’ Affairs determines the eligibility for this exemption, which must be reestablished annually. This exemption is also available on a mobile home owned and used exclusively by a disabled veteran or their spouse. For a single tax year, the property cannot receive this exemption and the Disabled Persons’ Homestead Exemption or Disabled Veterans’ Standard Homestead Exemption.
Disabled Veterans’ Standard Homestead Exemption
Public Act 95-644 that passed into law in 2007 created a new homestead exemption for disabled veterans beginning with the 2007 tax year (property taxes paid in 2008). This exemption is an annual reduction in EAV on the primary residence occupied by a qualified disabled veteran. The disabled veteran must own or lease a single family residence and be liable for the payment of property taxes. The amount of the exemption depends on the percentage of the service-connected disability as certified by the U. S. Dept. of Veterans’ Affairs. A disabled veteran with a disability of at least 50%, but less than 75% will receive a $2,500 reduction in EAV. A disabled veteran with a disability of at least 75% will receive a $5,000
reduction in EAV. Initial application Form PTAX-342 Application for Disabled Veterans’ Standard Homestead Exemption must be filed with the chief county assessment office. The Form PTAX-342-R, Annual Verification of Eligibility for Disabled Veterans’ Standard Homestead Exemption must be filed each year to continue to receive the exemption. For a single tax year, the property cannot receive this exemption and the Disabled Persons’ Homestead Exemption or Disabled Veterans’ Homestead Exemption. For more information contact the Chief County Assessment Office.
Homestead Improvement Exemption
This exemption is limited to the fair cash value that was added to the homestead property by a new improvement, or the difference in an increase in assessed value between the prior structure and a rebuilt residential structure following a catastrophic event, up to an annual maximum of $75,000. The exemption continues for four years from the date the improvement is completed and occupied. The Homestead Improvement Exemption may be granted automatically or Form PTAX-323, Application for Homestead Improvement Exemption may be required by the chief county assessment office. In Cook County, an application must be filed with the County Assessor along with a valuation complaint. For information and to apply contact the
Cook County Assessor's Office, all other counties contact the Chief County Assessment Office.
Property Tax Extension Limitation Law
The PTELL is designed to limit the increases in property tax extensions (total taxes billed) for non-home rule taxing districts. Although the law is commonly referred to as "tax caps," use of this phrase can be misleading. The PTELL does not "cap" either individual property tax bills or individual property assessments. Instead, the PTELL allows a taxing district to receive a limited inflationary increase in tax extensions on existing property, plus an additional amount for new construction.
The limit slows the growth of revenues to taxing districts when property values and assessments are increasing faster than the rate of inflation. As a whole, property owners have some protection from tax bills that increase only because the market value of their property is rising rapidly. Payments for bonds issued without voter approval are subject to strict limitations. If a taxing district determines that it needs more money than is allowed by the limitation, it can ask the voters to approve an increase. The collar counties (DuPage, Kane, Lake, McHenry, and Will) became subject to the PTELL for the 1991 levy year for taxes paid in 1992; Cook County was added for the 1994 levy year for taxes paid in 1995. Public Act 89-510 allows county boards to give voters in all other counties the opportunity to decide if the PTELL should apply to their counties. In addition, Public Act 89-718 allows county boards of counties that are subject to the PTELL by referendum to give voters the opportunity to rescind the PTELL using the same referendum process. Excluding Cook and the collar counties, 44 counties have voted on referendum to implement PTELL—referenda passed in 33 counties, rejected in 11 counties, and rescinded in 0 counties.
Returning Veterans’ Homestead Exemption
Public Act 95-644 that passed into law in 2007 created a new homestead exemption for returning veterans beginning with the 2007 tax year (property taxes paid in 2008). This exemption is a one-time $5,000 reduction in EAV on the principal residence of a veteran upon returning from active duty in an armed conflict involving the armed forces of the United States. Although the exemption is only for a single year, a qualifying veteran can receive the exemption for another tax year in which he or she returns from active duty. Applicants must file Form PTAX‑341, Application for Returning Veterans’ Homestead Exemption, with the chief county assessment office.
Senior Citizens Assessment Freeze Homestead Exemption (SCAFHE)
This exemption allows senior citizens who have a total household maximum income of less than $50,000, and meet certain other qualifications to elect to maintain the equalized assessed value (EAV) of their homes at the base year EAV and prevent any increase in that value due to inflation. The amount of the exemption benefit is determined each year based on (1) the property's current EAV minus the frozen base year value (the property's prior year's EAV for which the applicant first qualifies for the exemption), and (2) the applicant's total household maximum income limitation. Each year applicants must file Form PTAX-340, Senior Citizens Assessment Freeze Homestead Exemption Application and Affidavit, with the chief county assessment office. Public Act 95-644 that passed into law in 2007 increased the total household maximum income
limitation to $55,000 beginning with the 2008 tax year (property taxes paid in 2009).
Senior Citizens Homestead Exemption
This annual exemption is available for residential property that is occupied as the principal residence of a person, who is 65 years of age or older during the assessment year. The person must be the owner or a lessee with an ownership interest in the property with a single-family residence, who is be liable for the payment of the property taxes. The amount of the exemption is a $3,500 reduction in the EAV of the property. Filing requirements vary by county; some counties require an initial application, Form PTAX-324, Application for Senior Citizens Homestead Exemption, or an annual renewal application, Form PTAX-329, Certificate of Status - Senior Citizens Homestead Exemption, to be filed with the chief county assessment office. Public Act 95-644 that passed into law in 2007 increased the amount of the exemption to $4,000 beginning with the 2008 tax year (property taxes paid in 2009).
Senior Citizens Real Estate Tax Deferral Program
This program allows persons 65 years of age and older, who have a total household income of less than $50,000 and meet certain other qualifications, to defer all or part of the real estate taxes and special assessments on their principal residences. The deferral is similar to a loan against the property's market value. A lien is filed on the property in order to ensure repayment of the deferral. The state pays the property taxes and then recovers the money, plus 6 percent annual interest, when the property is sold or transferred. The deferral must be repaid within one year of the taxpayer’s death or 90 days after the property ceases to qualify for this program. The maximum amount that can be deferred, including interest and lien fees, is 80 percent of the taxpayer’s equity interest in the property. To apply for real estate tax deferrals, Forms PTAX-1017-TD, Application for Deferral of Real Estate Taxes, and PTAX-1018-TD, Real Estate Tax Deferral and Recovery Agreement, must be completed. To apply for special assessment deferrals, Forms PTAX-1017-SA, Application for Deferral of Special Assessments, and PTAX-1018-SA, Special Assessments Deferral and Recovery Agreement, must be completed. Contact your local County Treasurers Office to receive the necessary forms, or further information on the program.
Non-homestead Exemptions for Religious, Charitable, or Educational Organizations
Properties of religious, charitable, and educational organizations, as well as units of federal, state and local governments, are eligible for exemption from property taxes to the extent provided by law. The organization must apply for yhe exemption with the county board of review which reviews the application and forwards it to the department for the final administrative decision. For information contact the County Board of Review.
