You may have heard or read recently that the Chicago Property Tax rate is being raised again. In an attempt to attract readers, many of the headlines have included intentionally scary-sounding numbers. So we’re here to break down what the Chicago Property Tax increase really means.
Currently, the average homeowner’s tax bill in Chicago is equal to approximately 1.5% of the property’s assessed value. That means that if your home has been assessed at $500,000, your annual property tax bill is currently roughly $7,500. The 10% increase discussed in the media simply means that, with the new Chicago Property Tax rate increase, you will be paying an additional 10% of your annual tax bill, or in this case, approximately $750 more. Broken down by month, this increase will cost about $62.50 a month.
While this is certainly not ideal, the additional monthly expenses are far less overwhelming that many of the media headlines would lead you to believe.
It’s also important to remember that your taxes are determined by your home’s assessed value. That means that if your home is not assessed at the correct value for the current market, you could be paying more in taxes than you rightfully should. As a result, it’s possible that contesting your home’s assessed value can help decrease your current property tax bill. If you have not contested your current bill, this might be the time to do so. For more information on this process, read our past blog post about contesting your assessment.
We want to make sure that your homeowner journey is as easy and stress-free as possible. If you have any questions about this, please contact us! We’re happy to put you in touch with one of our trusted partners who can help you contest your assessment or review your monthly home spending to see where you may be able to save the additional monthly increase.