Property Tax Relief
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 $6,000 reduction in EAV. 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.
Disabled Persons Homestead Exemption (DPHE)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\u8209 -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 Form PTAX\u8209 -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 (DVHE)This exemption provides up to a $100,000 reduction in 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 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 (DVSHE)Effective in 2015, new homestead exemption standards for disabled veterans was passed. 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 the 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 veteran with a service connected disability of 30% – 49% is eligible to receive a $2,500 reduction in EAV. A veteran with a service connected disability of 50% – 69% is eligible to receive a $5,000 reduction in EAV. A veteran with a service connected disability of 70% or more the residential property is exempt from taxation.
NEW legislation takes effect for the 2015 tax year. Veterans should contact Chief County Assessment Office for information.
Beginning with 2011 tax year (property taxes paid 2012), a new provision takes effect under Public Act 96-1298 that allows a disabled veteran to continue to receive the exemption if the veteran becomes a resident of a facility licensed under the Nursing Home Care Act or a facility operated by the United States Dept. of Veterans’ Affairs as long as the residence is occupied by the spouse or the residence is unoccupied but still owned by the veteran.
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.
Homestead Improvement Exemption (HIE)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.
Returning Veterans’ Homestead Exemption (RVHE)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 $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. The veteran must own and occupy the residence on January 1 of the assessment year to receive the exemption for the tax year. A qualifying veteran is eligible to receive the exemption again if the veteran returns home from active duty in a subsequent tax year.
NEW legislation takes effect for 2010 tax year (property taxes paid in 2011) under Public Acts 96-1288 and 96-1418. Veterans should contact Chief County Assessment Office for information.
Senior Citizens Assessment Freeze Homestead Exemption (SCAFHE)This exemption allows senior citizens who have a total household maximum income of less than $65,000, and meet certain other qualifications to elect to maintain the 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.
Senior Citizens Homestead Exemption (SCHE)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 liable for the payment of the property taxes. The amount of the exemption is a $5,000 reduction in the EAV of the property.
Senior Citizens Real Estate Tax Deferral ProgramThis program allows persons 65 years of age and older, who have a total household income of less than $55,000 and meet certain other qualifications, to defer all or part of the real estate taxes 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. 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 the exemption with the county board of review which reviews the application and forwards it to the department for the final administrative decision.
Disabled Persons Homestead Exemption (DPHE)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\u8209 -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 Form PTAX\u8209 -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 (DVHE)This exemption provides up to a $100,000 reduction in 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 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 (DVSHE)Effective in 2015, new homestead exemption standards for disabled veterans was passed. 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 the 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 veteran with a service connected disability of 30% – 49% is eligible to receive a $2,500 reduction in EAV. A veteran with a service connected disability of 50% – 69% is eligible to receive a $5,000 reduction in EAV. A veteran with a service connected disability of 70% or more the residential property is exempt from taxation.
NEW legislation takes effect for the 2015 tax year. Veterans should contact Chief County Assessment Office for information.
Beginning with 2011 tax year (property taxes paid 2012), a new provision takes effect under Public Act 96-1298 that allows a disabled veteran to continue to receive the exemption if the veteran becomes a resident of a facility licensed under the Nursing Home Care Act or a facility operated by the United States Dept. of Veterans’ Affairs as long as the residence is occupied by the spouse or the residence is unoccupied but still owned by the veteran.
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.
Homestead Improvement Exemption (HIE)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.
Returning Veterans’ Homestead Exemption (RVHE)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 $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. The veteran must own and occupy the residence on January 1 of the assessment year to receive the exemption for the tax year. A qualifying veteran is eligible to receive the exemption again if the veteran returns home from active duty in a subsequent tax year.
NEW legislation takes effect for 2010 tax year (property taxes paid in 2011) under Public Acts 96-1288 and 96-1418. Veterans should contact Chief County Assessment Office for information.
- Public Act 96-1418 expands the exemption from a single year to two consecutive tax years upon the veterans return from active duty. A returning veteran is eligible to receive the exemption the tax year and the following tax year the veteran returns home from active duty in an armed conflict involving the armed forces of the U.S. The exemption is available on the residence the veteran owns and occupies on January 1 of each tax year.
- Public Act 96-1288 allows a veteran who acquires a principal residence after January 1 of the year the veteran returns home to be eligible for the exemption the next tax year. The exemption is available on the principal residence the veteran owns and occupies on January 1 of the next tax year only.
Senior Citizens Assessment Freeze Homestead Exemption (SCAFHE)This exemption allows senior citizens who have a total household maximum income of less than $65,000, and meet certain other qualifications to elect to maintain the 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.
Senior Citizens Homestead Exemption (SCHE)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 liable for the payment of the property taxes. The amount of the exemption is a $5,000 reduction in the EAV of the property.
Senior Citizens Real Estate Tax Deferral ProgramThis program allows persons 65 years of age and older, who have a total household income of less than $55,000 and meet certain other qualifications, to defer all or part of the real estate taxes 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. 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 the exemption with the county board of review which reviews the application and forwards it to the department for the final administrative decision.
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