Second-Installment Bills on time for the first time since COVID; due August 1, 2024
The Clerk’s Office has completed the calculation of 2023 property tax rates for more than 1,400 taxing agencies in Cook County and released its annual tax rate report Tuesday.
The Clerk’s Tax Extension Unit is responsible for calculating property tax rates for all local governments in Cook County that authorize the collection of revenue through real estate taxes, according to Clerk Cedric Giles.
Total Tax Billed Continues to Increase Year Over Year
Once again, the total property tax billed for taxing districts in Cook County continues to steadily increase. Last year the total tax billed was $17.6 billion, this year the total tax billed is over $18.3 billion. This 3.96% increase is due to several factors such as assessed values, taxing district levies, and the state-issued equalization factor.
2023 Re-Assessment
Each year one-third of the County is fully reassessed by the Cook County Assessor’s office.
The South and Western suburbs (suburbs south of North Avenue) were reassessed for tax year 2023, which is reflected in the tax bills currently payable.
The last time this region was examined by assessment officials en masse was tax year 2020.
The City of Chicago is currently being reassessed for tax year 2024, to be billed next year.
The North and Northwestern suburbs (suburbs north of North Avenue) were reassessed last year (tax year 2022) and will be reassessed again for tax year 2025.
Assessment and Tax Changes by Region
The following charts show the impact of the triennial reassessment on the three regions of Cook County on overall assessed values (AVs) and equalized assessed values (EAVs) in each of the three Cook County regions). The south and western suburbs, which were reassessed for tax year 2023, had a total assessment increase of 27.4%, while assessments in the City of Chicago and the north/northwestern suburbs remained mostly flat.
Comparative Property Tax Changes
Increases or reductions in assessed values do not necessarily mean increases or reductions in property taxes for individual properties. Changes in property taxes may be analyzed in many ways such as, but not limited to, by median, average, region, or municipality.
Comparing Average Residential and Commercial Properties by Region
In order to assess the changes impacting Cook County properties as a whole, the following examples utilize average estimated market values of Single-Family Dwellings and Commercial properties to evaluate possible property tax changes by region.
Property Tax Changes for Average Single-Family Dwellings by Region
Property Tax Changes for Commercial Properties by Region
Comparing Similar-value Sample Residential and Commercial Properties by Region
The following table examines possible property tax changes for sample residential properties with the same estimated market value last year (tax year 2022) across three different regions. This reflects the impact of the 2023 reassessment in the north and northwest suburbs and overall tax rate changes across each respective region.
Property Tax Changes for Sample Residential Property
The table below examines possible property tax changes for sample commercial properties with the same estimated market value last year (tax year 2022). It illustrates the impact of the 2023 reassessment in the south and west suburbs and overall tax rate changes across each respective region.
Property Tax Changes for Sample Commercial Property
Total Tax Billed by Region
The total amount of property tax billed in Cook County increased 3.96% this year compared to last year, increasing from $17.6 billion to $18.3 billion. This increase is partly due to high rates of inflation, which are utilized in the Clerk’s tax rate calculations each year as dictated by the Illinois “Tax Cap” law. The Tax Cap Law allows most taxing districts to increase their property tax revenue each year by the Consumer Price Index for Urban Areas (CPI-U) or by 5%, whichever is lowest. For tax year 2023, the U.S. Bureau of Labor Statistics calculated CPI-U to be 6.5%, therefore the Tax Cap calculations used the alternate maximum increase of 5%. There are a number of exceptions to the Tax Cap Law, including Home Rule Municipalities, new construction, debt service funds, and other factors. For tax year 2024, the Tax Cap calculations will only allow for a 3.4% increase in property tax revenue.
The south and western suburbs experienced a larger increase in total tax billed compared to the City of Chicago and the north and northwestern suburbs, primarily due to the 2023 reassessment of suburban properties lying south of North Avenue.
The chart below shows the increase in total tax in each of the three Cook County regions.
Factors that Impact Property Tax Increases or Decreases
The tables in the previous section provide examples of average trends within Cook County.
The four most impactful factors which affect whether or not individual property tax bills will increase or decrease are:
- The amount of property tax requested by the taxing districts (property tax levies)
- The change in the value of a property relative to other properties within the same districts (property assessment)
- The 3.2% increase in the state-issued equalization factor compared to the prior year (from 2.9237 for 2022 to 3.0163 for 2023)
- Property tax exemptions. (For example, if a property received a Homeowner Exemption one year, but did not receive it the following year, the final taxable value of that property could be up to 10,000 higher without the exemption.)
In the City of Chicago and in the north and northwest suburbs, which were not reassessed this year, the average residential tax bills may increase slightly.
Many residential properties in the south and west suburbs experienced significant assessment increases and may also see tax increases this year.
It is important to note that an increase in assessment does not necessarily equate to an increase in taxes. For properties in the south and western suburbs, the primary driving force impacting property tax increases or decreases is the percentage of assessment change. The overall Assessed Value in the south and western suburbs increased by 27.4%. This contributed to a 20.7% reduction in the average composite tax rate in this region. A lower tax rate will offset the impact of assessment increases.
Properties with assessment changes near the average increase or higher may experience tax increases. However, properties with assessment decreases, or increases of less than the average may see a tax decrease.
Below is a table of several examples showing the possible tax year 2023 impact of various levels of assessment increases on a sample south or west suburban residential property worth $250,000 last year (tax year 2022) utilizing the Average tax rate in the south/western region of Cook County.
With over 1,400 taxing districts servicing over 1.8 million properties of numerous classifications and values, there is a great deal of variability in individual tax bills, especially suburban tax bills. Individual tax bills, especially in the suburbs where there are more taxing districts, may increase or decrease depending on the combination of taxing districts servicing those properties.
It is important to note that individual properties within each city, village, or township may experience property tax increases or decreases that do not align with the overall tax increase or decrease for that area.
Tax rates in the various Cook County suburbs differ due to the large number of municipalities, school districts, park districts, and other taxing districts which provide different services. Specific areas will experience larger or smaller tax changes depending on the taxing districts associated with those areas. Additionally, taxpayers within the same suburb may pay different rates based on the specific taxing districts, which provide their services.
Increases and Decreases in Average Tax Billed to Single-Family Homes
Following is a map of Cook County displaying the percentage increases or decreases in the average property tax billed for single-family homes within each City or Village for tax year 2023.
The ten municipalities with the largest increases in average tax billed to single-family homes are listed in the table.
Other factors that impact taxes
Property Tax Relief Grants
Several years ago, the State of Illinois authorized the Property Tax Relief Program for eligible school districts. This year, 31 school districts in the south and western suburbs were able to provide property tax relief totaling $73.4 million to their constituents through this program, which provides grants in exchange for tax levy reductions.
Voter Initiatives
Each election, taxing districts have the opportunity to request voter approval for property tax increases through referenda. The most common types of property tax referendum in Cook County are debt service bonds or exceptions to the Tax Cap Law.
This chart reflects taxing districts in which Tax Cap law exceptions were authorized by voters.
Summation
- This report has presented the general trends occurring in Cook County. Each tax bill will vary depending on specific circumstances including taxing district levies, individual assessments, and other factors.
- The total tax amount billed in Cook County has increased 3.96%, exceeding $18.3 billion for tax year 2023.
- The overall taxable value (EAV) in Cook County has increased 7.86% for tax year 2023 compared to 2022.
- While specific assessment increases or decreases within the south and west suburbs varied by taxing district, the overall assessment within that region increased 27.4%, primarily due to the three-year reassessment of that region.
- The state-issued Equalization Factor increased by 3.17% from 2.9237 in 2022 to 3.0163 in 2023. An increased Equalization factor offsets assessment decreases and amplifies assessment increases.
- In the City of Chicago and the north and northwest suburbs, overall taxable values increased approximately 3%, primarily as a result of the increase in the Equalization Factor.
- Tax rates are nearly flat in the City of Chicago and up slightly in the north and northwest suburbs compared to last year. The largest rate differences occurred in the south and west suburbs, which experienced an average rate reduction of 20.7%.
- The 2023 second-installment property tax bills are currently payable online. Tax bills will be mailed by July 1 with a due date of August 1, 2024.
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