Chicago’s Proposed Property Tax Exemption Increase
While there’s been a lot of news on the impact Rahm Emanuel’s $541-$588 million property tax increase will have on Chicago homeowners, many do not yet realize that it also includes a tax cut for homes valued below $250,000.
Are You Above or Below the Property Tax Exemption Threshold?
This affects approximately 290,000 Chicago homeowners. See the table below to see the increase or decrease that affects you.
Just remember that this relates to the amount the Cook County Assessor’s office says your home is worth, which may or may not be in tune with actual home prices on the market. This could unfairly place your home value above the threshold or in a higher category below the threshold so you miss out on potentially larger savings. Our free property tax reduction estimate can help you understand where you are and if there’s a case to lower your home’s assessed value so you can enjoy a larger reduction or lower increase.
| Home Value | 2015 Taxes | 2016 Taxes (2015 + $318M) |
2017 Taxes (2015 + $428M) |
2018 Taxes (2015 + $481M) |
2019 Taxes (2015 + $544M) |
|---|---|---|---|---|---|
| $100K | $1,390 | ($340) | ($318) | ($307) | ($294) |
| $150K | $2,325 | ($273) | ($228) | ($206) | ($180) |
| $200K | $3,260 | ($206) | ($138) | ($105) | ($65) |
| $250K | $4,195 | ($140) | ($48) | ($4) | $49 |
| $300K | $5,130 | ($73) | $42 | $97 | $163 |
| $400K | $7,000 | $61 | $221 | $299 | $392 |
| $500K | $8,870 | $195 | $401 | $501 | $620 |
What If You’re Above $250,000 But Live on a Fixed Income?
If your home is valued above $250,000, your taxes will increase – significantly. This increase could drive people out of their homes. The best protection against this scenario is to appeal your property taxes and it all starts with a free property tax appeal estimate.
It Could Be Worse…
According to Chicago Real Estate Daily, mansions owned by Richard Parrillo and JB Pritzker worth $12-$16 million each and already are taxed around $230,000 per year could see increases of $29,000-$39,000 per year.
Contact us to see if you qualify for this potentially new Chicago property tax exemption
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