Why Are Illinois Property Taxes So High?

Key Takeaways

• Illinois’ effective property tax rate is about 1.84%, compared with a 0.90% national average.
• Local governments rely heavily on property taxes to fund schools and public services.
• Illinois has more local government units than any other state.
• Your bill can rise because of local levies, even when your assessment stays the same.
• Exemptions and assessment appeals may help lower what you owe.

Opening an Illinois property tax bill can be frustrating, especially when the amount keeps rising even though your home has not changed. If you have asked, “Why are property taxes so high in Illinois?” you are not imagining the difference.

Illinois property taxes are high because local governments depend heavily on them to fund schools, municipalities, counties, park districts, and other services. Your bill also reflects your assessed value, exemptions, and the combined rate set by every taxing district serving your address.

Illinois Property Taxes Compared With the National Average

ATTOM’s 2025 report placed Illinois’ effective property tax rate at 1.84%. The national average was 0.90%, so the typical Illinois rate was slightly more than twice the national figure.

An effective rate compares the tax paid with the home’s market value. For example, 1.84% equals about $5,520 per year on a $300,000 home, while 0.90% equals $2,700.

Actual bills vary based on the property’s location, assessed value, exemptions, and local levies. However, this comparison helps answer why property taxes are so high in Illinois compared with most of the country.

ICON’s Illinois property tax rate overview explains how assessed value, equalization, exemptions, and local rates work together to determine your bill.

Five Reasons Illinois Property Taxes Are So High

There is no single answer to the question, “Why are Illinois taxes so high?” Several parts of the state’s local funding system contribute to the overall property tax burden.

1. Local Governments Rely Heavily on Property Taxes

Illinois does not levy a statewide property tax. Counties, cities, townships, school districts, and other local bodies manage property taxes instead.

These taxes help fund:

• Public schools
• Police and fire departments
• Roads and street maintenance
• Libraries
• Parks
• City and county operations

Property taxes account for 32.3% of Illinois state and local tax collections. When local governments need more money to provide services, property owners often carry much of that cost. 

2. Illinois Has Thousands of Local Government Units

Illinois had 6,930 local governments in the 2022 Census of Governments, more than any other state. This total includes counties, municipalities, townships, school districts, and special purpose districts. 

Not every government unit appears on every tax bill. However, one home may fall within several overlapping districts, each with its own budget and property tax levy.

Depending on your address, your bill may include taxes for a:

• County
• City or village
• Township
• School district
• Community college district
• Park district
• Library district
• Fire protection district
• Sanitary or water district

These overlapping districts help explain why Illinois cities have high property tax rates that can differ between nearby neighborhoods. Two homes in the same city may fall within different school, park, or fire protection districts.

3. Public Schools Depend Heavily on Local Property Taxes

Public schools receive the largest share of Illinois property tax revenue. The Illinois Report Card states that local funding is the largest revenue source for most school districts and comes mainly from property taxes. 

As school district budgets and funding needs change, their levies can have a major effect on the total rate homeowners pay.

This is an important part of the answer when homeowners ask why Illinois taxes are so high. Even when a city or county holds its levy steady, an increase from the local school district can still push the total bill higher.

4. Pension Obligations Add to Local Budgets

Local governments must also budget for pension contributions for many public employees. The Illinois Municipal Retirement Fund alone works with more than 3,000 local government employers. (IMRF)

Pensions are not the only reason Illinois property taxes are high, and their effect differs by community. Still, required contributions are a recurring cost that local governments must include in their budgets.

When pension costs rise, local officials may need to reduce other spending, find another source of revenue, or increase the property tax levy.

5. Assessments May Not Quickly Reflect a Changing Market

Illinois property taxes follow a two-year cycle. A property is assessed in one year, and the resulting tax bill is generally paid the next year.

Properties outside Cook County are fully reassessed every four years, while Cook County follows a three-year cycle. Assessors may make changes between cycles, but a cooling real estate market may not immediately appear in an assessment or tax bill. 

Your bill can also increase when your assessment stays the same or decreases. This can happen when:

• Local taxing districts increase their levies.
• The total value of the local tax base changes.
• An exemption expires or is removed.
• The state equalization factor changes.
• Your property takes on a larger share of the local tax burden.

This timing is another reason homeowners may wonder why property taxes are so high in Illinois, even after local home prices begin to level off.

Illinois Cities and Counties With High Property Tax Rates

There is not one property tax rate for every home within a city or county. Your total rate depends on the exact combination of taxing districts assigned to your address.

The table below shows recent county-level effective rates for owner-occupied homes in several major Illinois areas. The median tax paid also reflects differences in local home values. (Tax Foundation)

County	Example Community	Effective Rate	Median Property Tax Paid
Kendall	Yorkville	2.28%	$7,651
Winnebago	Rockford	2.28%	$3,930
Lake	Waukegan	2.26%	$8,923
DeKalb	DeKalb	2.24%	$5,974
Kane	Geneva	2.18%	$7,382
Will	Joliet	2.10%	$7,173
DuPage	Wheaton	1.89%	$8,007
Sangamon	Springfield	1.89%	$3,512
Cook	Chicago	1.73%	$6,191

These are county averages, not the rates for individual homes. A property’s actual bill may be higher or lower based on its value, exemptions, and local taxing districts.

The table also shows why lists of Illinois cities with high property tax rates do not tell the full story. Cook County has a lower effective rate than several counties in the table, but its higher home values still result in a median property tax bill of more than $6,000.

Homeowners can find more local information in ICON’s guides to Chicago property taxes, Lake County property taxes, DuPage County property taxes, and Sangamon County property taxes.

What Illinois Homeowners Can Do

You cannot personally lower a school district’s levy or change the number of government units in Illinois. You can make sure your own taxable value is accurate and that every available exemption is applied.

1. Apply for Every Exemption You Qualify For

Property tax exemptions reduce the portion of your home’s value that is taxed. Depending on your situation, you may qualify for an exemption related to:

• An owner-occupied home
• Senior status
• A disability
• Military or veteran status
• Certain home improvements
• Returning veteran status

Review your county property record and tax bill to confirm that every exemption you have been approved for appears correctly.

A missing exemption can increase your bill even when your property assessment is accurate. Some exemptions also require an application or renewal, so do not assume they will always be added automatically.

2. Appeal an Inaccurate or Unfair Assessment

An appeal challenges your property’s assessment, not the tax rate set by the local government.

You may have grounds to appeal when:

• Your property record contains errors.
• Recent comparable sales support a lower value.
• Similar properties have lower assessments.
• Damage or needed repairs reduce your home’s value.
• A recent purchase price does not support the assessor’s estimate.

Appealing the assessment may not solve every reason why Illinois taxes are so high, but it can help ensure you are not paying more than your fair share.

Deadlines and procedures vary by county and, in Cook County, by township. 

3. Hire a Property Tax Appeal Professional

A professional can review your assessment, select comparable properties, prepare evidence, meet local deadlines, and represent you during the appeal.

ICON charges no upfront fee. Its fee is 25% of the first year’s tax savings and applies only when the appeal produces savings.

ICON reports that many counties see assessment reductions in more than 70% of cases. Results vary based on the property, location, available evidence, and local appeal rules. (Icon Property Tax)

How Much Can a Property Tax Appeal Save?

There is no single average savings amount for every Illinois property tax appeal. The final amount depends on:

• How much the assessment is reduced
• The property’s local tax rate
• County equalization rules
• Available exemptions
• Whether the new value affects future tax years

For example, suppose an appeal lowers a home’s fair market value by $30,000 outside Cook County. At the standard one-third assessment level, the assessed value would fall by about $10,000.

With an 8% local tax rate, the estimated annual savings would be about $800. Illinois generally assesses property outside Cook County at 33⅓% of fair market value. (tax.illinois.gov)

This is only an example, not a guaranteed result. A larger assessment reduction or a higher local rate could produce more savings. A smaller reduction could produce less.

ICON reports more than $100 million in total property tax savings for clients, while many counties see successful reductions in over 70% of cases. (Icon Property Tax)

ICON’s public FAQ uses a $1,000 annual tax reduction as an example. After ICON’s 25% performance fee, the homeowner would keep $750 of the first year’s savings. 

Get Help Appealing Your Illinois Assessment

Understanding why property taxes are so high in Illinois explains how the system works, but it does not tell you whether your own assessment is fair.

High local tax rates affect every property within the same group of taxing districts. An inaccurate assessment affects how much of that tax burden is assigned specifically to you.

ICON reviews property records, comparable sales, assessment uniformity, and local filing requirements to determine whether an appeal may be worthwhile. The team then handles the filing, evidence, and representation on your behalf.

Look up your Illinois property to see whether ICON may be able to lower your assessment. There is no upfront fee, and you only pay when the appeal saves you money.