Chicago Real Estate Taxes
Chicago property taxes are always in the arrears by approximately one year so your Chicago real estate taxes will be an estimate based on the following formula: Assessed Value (usually 1/3 of Market Value); multiplied by a Value Percentage for the area (25% for example); minus Homestead Exemption ($4500 in Chicago) or Senior Exemption; then multiplied again for your particular Taxing District. Here's a table to better illustrate this equation:

Assessed Value

X

Value Percentage for Area

-

Exemptions

X

Tax Rate

usually 1/3 of Market Value

based on the neighborhood or locality of the property

Homestead and Senior Exemptions are most common

Determined by your Taxing District


In short, plan on 1-1.5% of Purchase Price for resale properties and 1.5-2% for new construction or conversions. And remember, your current Taxes will be billed and due the following year, i.e. 2009 taxes will be billed and due in 2010. Bills generally are mailed out in August and March. For more information, go to the Cook County Assessor's website and see the section on Estimated Tax Payments in Chicago.

The Cook County Treasurer's Office also has this to say about Chicago Real Estate Taxes:
    Q: I am a new homeowner. What should I know about my taxes?
    A: Here are the basics:
    • If you pay taxes through a mortgage escrow account, it is important that you DO NOT DOUBLE-PAY.
    • Update the name and address so that you receive the bill(s) for any Property Index Number(s) (PIN) you own. This is the way to make sure that you receive all important notices—for tax-saving exemptions, assessment changes, delinquencies and refunds.
    • Apply to the Cook County Assessor for all tax-saving exemptions that you qualify to receive. By law, you must re-apply to the Assessor for these exemptions each year.
    • If you pay taxes through mortgage escrow, verify that the company pays the correct amount on time and on the correct PIN. Shortly after the due date, go to payments and click on status and enter the 14-digit PIN(s) to see whether the taxes have been paid.
      • If you do not pay taxes through escrow and are responsible for paying the tax, follow the instructions at this Web site or on your bill for submitting a payment.
If you have any other questions regarding Chicago Real Estate Taxes, feel free to ask an agent.