Your Guide to Cook County Property Taxes

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If you own a home in Chicago or Cook County, or are planning to become a homeowner, property taxes are an unavoidable factor to keep in mind. While property taxes help fund important local services like schools, parks and public safety, the way they’re calculated and what appears on your tax bill can feel confusing.

Understanding the basics can help you plan your housing budget and spot potential issues on your tax bill.

What Do My Property Taxes Pay For?

Property taxes fund many of the services that keep communities running. In Cook County, your tax dollars support local government bodies such as:

  • Public school districts
  • Municipal services like police and fire departments
  • Park districts
  • Libraries
  • Community colleges
  • County services

Each of these taxing bodies sets a levy, or the amount of money they need to operate. Your individual tax bill reflects your share of those levies based on your property’s assessed value.

How Are Property Taxes Calculated?

Property taxes in Cook County are based on three main factors:

1. The Assessed Value of Your Property
The Cook County Assessor estimates the value of your property. Residential properties are assessed at 10% of their market value.

2. An Equalization Factor
The State of Illinois applies an equalization factor to ensure assessments across counties are consistent with state standards.

3. Local Tax Rates
Local taxing districts determine the tax rate needed to generate their budgets.

These components combine to determine your final tax bill.

What’s Included On A Property Tax Bill?

When your property tax bill arrives, it contains several key sections that explain how your taxes were calculated.

Some of the most important details include:

  • Property Index Number (PIN): This is the unique number that identifies your property.
  • Assessed Value: This is the value used to calculate your taxes.
  • Exemptions: You may qualify for reductions that lower your taxable value.
  • Taxing Districts: These are the local governments receiving portions of your tax payment.
  • Installment Amounts: This is the amount due for the current installment.

In Cook County, property taxes are usually paid in two installments each year.

What Property Tax Exemptions Are Available?

Many homeowners qualify for exemptions that lower their property’s taxable value. Some of the most common include:

  • Homeowner Exemption
  • Senior Citizen Exemption
  • Senior Freeze Exemption
  • Disabled Persons Exemption
  • Veterans with Disabilities Exemption

These exemptions reduce the portion of your home’s value that is taxed, which can significantly lower your bill. More details on these exemptions can be found here.

What If Something Looks Wrong?

If your property tax bill doesn’t seem accurate, there may be options to review or appeal it. Homeowners can:

  • Verify that exemptions were applied correctly
  • Confirm the assessed value of the property
  • Review the taxing districts listed on the bill

Because property tax assessments and appeals can be complex, working with a knowledgeable professional can help homeowners better understand their options.

Why Do Property Taxes Matter When Buying A Home?

Property taxes can have a significant impact on the overall cost of homeownership. When considering a home purchase, buyers should factor taxes into their long-term budget.

A REALTOR® can help buyers:

  • Research historical property tax levels
  • Understand potential tax changes after a purchase
  • Identify available exemptions
  • Evaluate total housing costs before making an offer

The Bottom Line

Property taxes may seem complicated, but understanding how they work can make you a more confident homeowner. Reviewing your tax bill each year and knowing what affects your property taxes can help you plan ahead and avoid surprises.

If you’re buying or selling a home in Chicago, a REALTOR® can help you navigate property tax questions and make informed decisions about your next move.

Illinois & Cook County Property Tax Benefits & Exemptions

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Buying a home is a long-term financial investment. One benefit many homeowners don’t fully explore is how homeownership can offer tax advantages, especially when paired with the property tax relief programs available in Illinois and Cook County.

Here’s a look at how homeownership may impact your taxes and what exemptions could help lower your property tax bill.

Federal Tax Benefits of Owning a Home

Most homeowners finance their purchase with a mortgage, and those monthly payments often include more than just principal and interest. At the federal level, certain homeownership costs may be tax-deductible.

According to the Internal Revenue Service (IRS), common deductible homeownership expenses may include:

  • Home mortgage interest, within IRS-allowed limit
  • State and local property taxes, subject to a combined $10,000 cap for state and local tax deductions
  • Certain mortgage-related costs, depending on your loan and situation

It’s important to note that:

  • You must itemize deductions (rather than take the standard deduction) to claim these benefits
  • Not every homeowner will benefit in the same way
  • A tax professional can help determine what applies to your situation

While tax savings shouldn’t be the sole reason to buy a home, they can be a meaningful part of the overall financial picture.

State of Illinois Property Tax Relief Programs

Illinois offers statewide programs that may provide relief to eligible homeowners.

Resources provided by the Illinois Department of Revenue outline options such as:

  • Property tax relief programs for seniors
  • Assistance tied to household income or disability status
  • Additional credits or deferrals for qualifying homeowners

Eligibility rules and benefits can vary, so it’s important to review current guidelines or consult a trusted professional for help navigating the options.

Property Tax Relief in Cook County

If you own a home in Cook County, you may be eligible for property tax exemptions that can reduce the taxable value of your home and ultimately, your tax bill.

The Cook County Assessor’s Office offers several exemptions, including:

Homeowner Exemption

Available to homeowners who occupy their property as their primary residence. This exemption lowers the assessed value of your home and is one of the most common forms of relief.

Senior Citizen Exemptions

Designed for homeowners aged 65 and older, these exemptions can further reduce property taxes and may include:

  • Senior Homestead Exemption
  • Senior Freeze Exemption (income-based, with eligibility requirements)

Exemptions for Veterans and Persons With Disabilities

Qualifying homeowners may be eligible for exemptions based on disability status or military service, depending on specific criteria.

Exemptions are not always automatic, and homeowners may need to apply or reapply to ensure they receive the benefit. A full list of Cook County exemptions can be found here.

Why Local Expertise Matters

Understanding tax benefits and exemptions can feel overwhelming, especially for first-time buyers or new homeowners. A local REALTOR® can help you:

  • Understand how property taxes vary by neighborhood
  • Flag exemptions you may want to explore after purchase
  • Connect you with trusted tax professionals or local resources

The Bottom Line

Homeownership comes with responsibilities, but it can also offer meaningful tax advantages, especially when homeowners take advantage of available exemptions and relief programs.

If you’re considering buying, selling or already own a home, learning how these benefits apply to your situation can help you protect your investment and maximize the value of homeownership.

Selling Your Home While Buying the Next One

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Life doesn’t always wait for perfect timing. Maybe your family is growing, your job is relocating you or your current home no longer fits your needs. Whatever the reason, many Chicago homeowners find themselves asking the same question:

Is it possible to sell my current home and buy a new one at the same time?

The short answer is yes, but success depends on preparation, timing and the right guidance. Here’s what to know if you’re planning to sell and buy at the same time in today’s Chicago-area market.

Step 1: Understand Your Local Market Conditions

Before making any moves, it’s important to understand whether you’re operating in a buyer’s market, a seller’s market or something in between.

In Chicago, market conditions can vary widely by neighborhood, property type and price point. Knowing what’s happening locally helps you:

  • Price your current home realistically
  • Anticipate how quickly it may sell
  • Gauge how competitive your next purchase could be

A clear picture of the local market allows you to build a strategy that minimizes stress and reduces the risk of timing gaps between transactions.

Step 2: Build a Strategy That Balances Timing and Flexibility

When buying and selling at the same time, timing is everything, but flexibility is important, too. Some homeowners sell first and rent short-term, while others buy first and rely on contingency clauses or temporary financing.

Common strategies include:

  • Sale-contingent offers, which allow you to buy once your current home sells
  • Extended closing or rent-back agreements, giving you time to move after the sale
  • Coordinated closings, so both transactions happen back-to-back

Each approach has tradeoffs, and the right one depends on your financial position, risk tolerance and local market conditions.

Step 3: Partner With a REALTOR® Who Can Coordinate Both Sides

Juggling two transactions is all about strategy. A local REALTOR® understands how Chicago’s market behaves and can help you align your selling and buying timelines.

A REALTOR® can:

  • Set a competitive listing price for your current home
  • Help you negotiate terms that support a smooth transition
  • Coordinate timelines between buyers, sellers, lenders and attorneys
  • Identify risks early and help you avoid costly missteps

Working with a REALTOR® who knows your goals can turn a complicated process into a manageable one.

Step 4: Get Clear on Your Finances Before You List or Shop

Understanding your financial situation upfront is essential when selling and buying at the same time.

Before you begin, take time to:

  • Estimate how much equity you have in your current home
  • Understand how much your next purchase will cost
  • Explore short-term financing options that may help bridge timing gaps

A trusted lender and REALTOR® can walk you through options like bridge loans or temporary financing and help you evaluate what fits your budget without stretching you too thin.

Step 5: Plan for the Unexpected

Even with careful planning, processes don’t always move on the same timeline. Inspections, appraisals or buyer financing can introduce delays. Building in contingency plans, whether that’s flexible move-out dates or backup housing options, can help reduce stress if plans shift.

The Bottom Line

Selling your home while buying the next one is possible, and many Chicago homeowners do it successfully every year. The key is preparation, local knowledge and professional guidance.

With a clear understanding of the market, a solid financial plan and a REALTOR® who can coordinate both sides of the transaction, you can move forward with confidence and make the transition into your next home as smooth as possible.

Understanding Closing Costs: A Buyer’s Checklist

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You’ve found the right home, negotiated an offer and are ready to close. Before you get the keys, there’s one more important piece to plan for: closing costs.

Closing costs are the fees and expenses you pay to finalize your mortgage and officially transfer ownership of the property. They typically range from 2% to 5% of your home’s purchase price, and they cover a mix of lender, legal and administrative services that make your home purchase possible.

Understanding what to expect can help you budget confidently and avoid surprises at the closing table. Here’s a checklist to guide you:

Lender-Related Costs

These fees come directly from your mortgage lender. They include:

  • Loan origination fee: Covers the lender’s processing and administrative work for creating your mortgage.

  • Credit report fee: The cost to pull your credit report and evaluate your financial history.

  • Underwriting fee: Charged for verifying your income, assets and risk as a borrower.

Tip: Ask your lender for a loan estimate early in the process. This document breaks down each expected charge so you can compare lenders and avoid hidden fees.

Title & Legal Fees

These costs ensure the property’s ownership is clear and legally transferred to you. You can expect to pay:

  • Title search & title insurance: Verifies that the seller legally owns the home and protects you (and your lender) from future claims against the property.

  • Attorney fees: In Illinois, closings typically involve an attorney who reviews documents, ensures legal compliance and guides you through the process.

  • Recording fees: Paid to the county to officially record your new deed and mortgage.

Prepaid & Escrow Items

You’ll likely prepay certain ongoing costs at closing, like:

  • Property taxes: Usually prorated between the buyer and seller, depending on when the property changes hands.

  • Homeowner’s insurance: Lenders often require the first year’s premium to be paid at closing.

  • Prepaid interest: Covers interest that accrues from your closing date until your first mortgage payment.

  • Escrow deposits: Funds held by your lender to cover future property tax and insurance payments.

Other Possible Expenses

  • Appraisal fee: Pays for an independent assessment of your home’s value to confirm it meets the lender’s standards.

  • Home inspection: Though not always required by the lender, it’s a smart step to identify potential repairs or safety issues.

  • Transfer taxes: In Chicago, both buyers and sellers may pay a real estate transfer tax when the property changes hands.

Preparing for the Final Step

Before closing day, review your closing disclosure, a detailed summary of all final costs, at least three business days in advance. Compare it with your loan estimate and ask your lender or attorney to explain any differences.

If funds are due, your lender or attorney will let you know how much to bring to the closing table (usually by wire transfer or cashier’s check).

Buying a home is one of the biggest investments you’ll ever make — and knowing what to expect at closing helps you start your homeownership journey on the right foot.

The Pre-Approval Process: Why It Matters and How to Get Started

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Buying a home is one of the biggest financial decisions you’ll ever make, and the journey often starts before you even set foot in an open house. One of the smartest first steps you can take is getting pre-approved for a mortgage. Pre-approval gives you a clear picture of your budget, shows sellers you’re a serious buyer and helps your REALTOR® guide you toward the right homes.

What Is Mortgage Pre-Approval?

Pre-approval is a lender’s written estimate of how much they’re willing to loan you for a home purchase. To get it, you’ll provide financial documents so the lender can verify your income, credit, debt and savings. This offers a more detailed view than pre-qualification, which is typically based solely on self-reported information.

With a pre-approval letter in hand, you’ll know your price range, potential interest rate and loan options. Many sellers require pre-approval before accepting an offer, so it’s a powerful tool in a competitive market.

Why Pre-Approval Matters

  • It Sets Your Budget: You’ll know exactly how much home you can afford and avoid falling in love with properties out of reach.

  • It Strengthens Your Offer: Sellers are more likely to take you seriously and accept your offer if they know financing is lined up.

  • It Saves Time: You and your REALTOR® can focus on homes that match your price range.

  • It Identifies Issues Early: If there are problems with your credit or debt-to-income ratio, you’ll find out before you’re under contract, giving you time to address them.

What You’ll Need for Pre-Approval

Every lender may ask for slightly different information, but generally you’ll need:

  • Recent pay stubs and proof of employment

  • W-2s and/or tax returns from the past two years

  • Bank and investment account statements

  • Records of debts like car loans, student loans or credit cards

  • Identification (driver’s license, Social Security number)

The lender will also run a credit check to see your credit score and history.

How to Get Started

  1. Check Your Credit: Review your credit report for errors and know your score. The higher your score, the better your loan options.

  2. Gather Documents: Organize the financial paperwork listed above so it’s ready to share.

  3. Shop Around: Talk to multiple lenders, like banks, credit unions and mortgage brokers, to compare rates and fees.

  4. Apply for Pre-Approval: Once you choose a lender, submit your application and documents. If approved, you’ll receive a pre-approval letter, usually valid for 60–90 days.

  5. Work With Your REALTOR®: Share your pre-approval with your REALTOR® so they can help you find homes in your range and negotiate confidently.

Getting pre-approved sets you up for success. It helps you shop smarter, negotiate stronger and move faster when you find the home you love. With your pre-approval in hand, as well as the guidance of a trusted REALTOR®, you’ll be ready to turn your homeownership goals into reality.

What Is Escrow and Why Does It Matter?

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When you buy your first home, you’ll likely hear a lot of new terms for the first time, including the word “escrow.” Escrow plays a key role in both the homebuying process and in your ongoing homeownership. Let’s break it down. 

Escrow During the Home Purchase

In a real estate transaction, escrow refers to a neutral third party that holds money, documents and instructions until all conditions of the sale are met. Depending on the state, this role can be filled by a title company, escrow company, attorney or another licensed professional. In Illinois, it’s most common for the title company or your real estate attorney to handle escrow, making sure funds, contracts and closing documents stay secure until every part of the agreement is complete.

Think of it as a safety measure for both the buyer and the seller. For example:

  • The buyer’s earnest money deposit is placed in escrow to show good faith.
  • Funds are only released once the agreed-upon terms are completed, such as inspections, appraisals and loan approval.

This ensures neither side has to commit until everyone has done what they promised fully.

Escrow After You Buy: The Escrow Account

Escrow doesn’t end at closing. Many homeowners have an escrow account managed by their lender. Each month, part of your mortgage payment goes into this account. The lender then uses the funds to pay key homeownership costs on your behalf, like:

  • Property taxes
  • Homeowner’s insurance
  • In some instances, mortgage insurance

Having an escrow account helps break these large bills into manageable monthly amounts. It also provides peace of mind, since your lender is making sure these critical bills are paid on time.

Why Escrow Matters

Escrow protects buyers and sellers in the home-buying process by keeping money secure until the deal is final. Once the sale is completed, an escrow account protects you as a homeowner by making it easier to budget and preventing missed payments on taxes or insurance.

Escrow may sound like industry jargon, but it’s really a safeguard. Whether you’re buying a home or managing monthly costs, escrow helps keep the process smooth and secure.

Understanding Credit Scores and Their Role in Homebuying

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When you’re preparing to buy a home, your credit score is one of the most important numbers lenders will look at. In addition to influencing whether you’ll qualify for a mortgage, your credit score affects the interest rate and loan terms you’ll be offered, which can impact your monthly payments for years to come.

What Is a Credit Score?

A credit score is a three-digit number that reflects your history of borrowing and repaying money. It’s based on factors like how much debt you carry, how reliably you pay bills and how long you’ve had credit accounts open. In general, higher scores signal lower risk to lenders, while lower scores may suggest greater risk.

How Your Credit Score Affects Your Ability to Buy a Home

Mortgage lenders use credit scores as a way to measure trustworthiness. Having a higher score usually means you’ll qualify for a lower interest rate, saving you money over the life of the loan. On the other hand, having a lower score can mean higher rates or even additional requirements, like a larger down payment. That’s why it’s worth taking the time to strengthen your credit before applying for a loan.

What Influences Your Score

While credit scoring models can vary, the following tend to carry the most weight:

  • Payment history: Consistently paying bills on time is the single most important factor.

  • Credit utilization: How much of your available credit you’re using.

  • Length of credit history: Having older accounts open shows you’ve managed credit responsibly over time.

  • Types of credit: The different types of credit lines you have open, such as an installment loan (like a car loan) or revolving credit (like credit cards), can impact your score.

  • New credit inquiries: Opening several accounts in a short time can temporarily lower your score.

Improving Your Credit Before Buying

Even if your credit isn’t perfect, you can take steps to strengthen it:

  • Pay down balances. Aim to use less than 30% of your available credit.

  • Pay on time, every time. Even one missed payment can hurt your score.

  • Avoid opening new accounts right before applying. Lenders prefer stability.

  • Check your reports. Errors do happen—you can get free reports at AnnualCreditReport.com and dispute mistakes.

  • Build positive history. If your credit is thin or damaged, consider secured cards or small installment loans and pay them off responsibly.

The Bottom Line

Your credit score plays a major role in your homeownership journey. Understanding how it works — and taking steps to strengthen it — can help you secure a better mortgage rate and save money in the long run.

A trusted REALTOR® can connect you with local lenders, financial resources and strategies to prepare for buying. When you’re ready to begin your home search, your REALTOR® will be by your side to help you take the next step with confidence.

What Happens Between Contract Signing and Closing?

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You found the perfect home, your offer was accepted and the contract is signed—congratulations! But before you pop the champagne, there’s still a critical stretch of the homebuying journey ahead: the closing process. 

Between contract signing and getting the keys, several important steps must be completed to ensure the deal moves forward smoothly. Here are the key milestones every buyer should expect during this phase, plus helpful tips to keep things on track.

Entering Escrow

Once your offer is accepted and the contract is signed, both parties typically enter escrow. Escrow is a neutral holding arrangement where a third party manages funds and documents until the transaction is finalized. 

During this time, you’ll deposit earnest money—a good-faith payment showing you’re serious about the purchase. This money is usually credited toward your down payment at closing. 

✅ TIP: Confirm the escrow instructions and timeline with your REALTOR® so you don’t miss any deadlines.

The Appraisal

If you’re financing the purchase, your lender will require a home appraisal to determine the property’s market value. A licensed appraiser will assess the home based on factors such as: 

  • Condition and age 
  • Location 
  • Renovations 
  • Sales of similar nearby properties 

If the appraisal matches or exceeds the agreed-upon price, you’re one step closer to closing. If the home appraises for less, you may need to renegotiate or cover the difference. 

📖 What to expect during an appraisal 

✅ TIP: Ask your agent to run recent comps before the appraisal so you have a sense of what to expect and can be prepared to negotiate if needed.

Securing Insurance

Before your lender gives final approval, you’ll likely need to secure homeowners insurance. Depending on the property’s location, other types of coverage—like flood, earthquake or liability insurance—may also be required. 

Even if it’s not mandated, insurance is critical to protecting your investment and peace of mind. 

✅ TIP: Start gathering insurance quotes early so you can compare coverage and rates before your lender’s deadline.

Getting a Home Inspection

A home inspection isn’t always required, but it’s highly recommended—and often included as a contingency in your contract. A qualified inspector will evaluate the home’s structure, systems and safety. 

If the inspection uncovers major issues, you’ll have options: negotiate repairs, request a credit or, if needed, walk away without penalty. 

📖 What to expect during a home inspection 

✅ TIP: Attend the inspection if possible. It’s a great opportunity to ask questions and learn more about the home’s maintenance needs.

The Final Steps

Once the appraisal, inspection and insurance are squared away, your lender will issue final approval, and you’ll schedule your closing day. On that day, you’ll review and sign documents, pay your remaining costs and—finally—get the keys. 

📖 Steps between signing and closing 

✅ TIP: Do a final walkthrough the day before closing to confirm the home’s condition matches what was agreed upon—and that any requested repairs were completed. 

The Bottom Line

Signing the contract is a big milestone, but it’s just the beginning of the final leg of your homebuying journey. Knowing what to expect—and working closely with your REALTOR®—can help ensure a smoother, more confident path to homeownership. 

Apply For A First Time Homebuyers Home Warranty Grant This June

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In celebration of Homeownership Month this June, we’re offering 10 first-time homebuyers a chance to receive a $250 reimbursement grant toward their home warranty.

To Chicago REALTORS®:

 

Nominate one of your first-time homebuyer clients for this special, limited-time reimbursement grant! We’ve made it easy. Share this blog on social media with this  downloadable graphic (to the right). Click here to download.

OR, complete the nomination form for clients you already know are qualified for this grant.      

Click To Apply Online

 

To Applicants:

You did it! You closed on your very first home! CONGRATULATIONS!

One of the ways you can, and have, protected your investment is through a home warranty purchase. Between closing costs, down payments and moving expenses, out-of-pocket expenses can add up.

This year, the Chicago Association of REALTORS® Foundation is proud to help ease the burden of homeownership costs by offering Chicago REALTOR® clients the chance to obtain a $250 reimbursement grant for purchasing a home warranty package.

Criteria For Applicants

To be considered, you must meet the following criteria:

  • Applicant must have closed on the home within six months of the application submission date.
  • Applicant must be one of the primary homeowners.
  • Applicant must be a first-time home owner.
  • Application must include a 150 word statement on “what owning my first home means to me.”
  • NOTE: Homes purchased in underinvested communities will be given priority consideration.

Click Here To Apply Online