Illinois laws and regulations topic guide

Illinois real estate taxes and exemptions

A property-tax bill is the last page of a much longer process. The assessor values the parcel, the state equalizes, taxing districts levy, the clerk extends rates, exemptions reduce qualifying EAV, and the collector bills in the following year. Once those jobs are separated, the math and the exemption questions become far easier to control.

Last updated: August 1, 2026

What does current Illinois authority require?

Short answer: Illinois property tax is a local ad valorem tax administered through a two-year cycle. For ordinary exam math, find assessed value from fair cash value, apply the state equalization factor to get EAV, subtract qualifying EAV exemptions, and multiply the taxable EAV by the aggregate local rate. The General Homestead Exemption maximum for 2026 is $10,000 EAV in Cook, $8,000 in counties contiguous to Cook, and $6,000 elsewhere. The Senior Citizens Homestead maximum is $8,000 in Cook and contiguous counties or $5,000 elsewhere. The 2026 low-income senior assessment-freeze income ceiling is $75,000, but the program freezes qualifying EAV, not the final bill.

Official section: Illinois III.F: Real Estate Taxes and Exemptions
Broker weight: Part of 25% of the Illinois state portion
Expected scored items: Additional Illinois Laws and Regulations accounts for about 10 of 40 state items

Illinois Real Estate Taxes and Exemptions exam weight
Official section	Broker weight	Expected scored items
Illinois III.F: Real Estate Taxes and Exemptions	Part of 25% of the Illinois state portion	Additional Illinois Laws and Regulations accounts for about 10 of 40 state items

The PSI broker outline effective June 24, 2026 lists Real Estate Taxes and Exemptions in Illinois III.F. Amounts here are current for taxable year 2026 and were checked through August 1, 2026. Because assessment classes, county practices, local tax rates, filing dates, and parcel eligibility vary, use the facts supplied in an exam question and verify the county record in a real transaction.

Where is this tested on the Illinois outline?

Topic: Local ad valorem property tax
What to know: Real property, fair cash value, January 1 valuation date, local government, county, township, municipality, school district, park district, special district, public services, value-based tax, parcel, and no statewide bill rate
Best exam move: Treat property tax as multiple local levies applied to a parcel's taxable EAV, not as a single statewide percentage.

Topic: Assessment
What to know: Assessor, fair market value, assessed value, 33 1/3 percent, Cook County classification, farmland economic value, preferential assessment, property record card, physical characteristics, January 1, reassessment, and notice
Best exam move: Use the stated assessment level and never force the one-third rule onto classified or preferential property.

Topic: Review and appeal
What to know: Informal assessor review, error correction, market-value evidence, uniformity, comparable property, appraisal, arm's-length sale, board of review, deadline, written complaint, PTAB, circuit court, payment pending appeal, assessed value, and no rate appeal
Best exam move: Appeal the assessment on time, before the bill stage, and bring value or uniformity evidence rather than objecting only to the bill total.

Topic: Equalization
What to know: Illinois Department of Revenue, sales-ratio study, state equalization factor, multiplier, county median, 33 1/3 percent, assessed value, EAV, cross-county uniformity, overlapping districts, and no market-value substitution
Best exam move: Multiply assessed value by the equalization factor before subtracting EAV exemptions.

Topic: Levy, extension, collection, and distribution
What to know: Taxing district budget, levy request, county clerk, total EAV, tax rate, aggregate rate, extension, county collector, bill, installments, local government distribution, PTELL, and no individual tax freeze
Best exam move: Separate how much a district requests from the rate used to spread that request over taxable property.

Topic: Property-tax formula
What to know: Market value, assessment level, assessed value, equalization factor, EAV, exemption, taxable EAV, aggregate rate, percent conversion, tax bill, calculator order, and no transfer-tax units
Best exam move: Calculate in sequence and label every number so market value, EAV, and tax dollars never mix.

Topic: Two-year cycle and closing proration
What to know: Assessment year, payable year, January 1 value, arrears, latest bill, accrued taxes, seller credit, buyer payment, contract method, percentage adjustment, day count, bill reconciliation, and no final current bill
Best exam move: Recognize that the prior-year bill may be the best available estimate while the current assessment-year tax remains unbilled.

Topic: Tax lien and enforcement
What to know: Prior and first lien, January 1, penalties, interest, costs, payment, delinquency, tax sale, certificate, redemption, tax deed, title, and lien superiority
Best exam move: Property taxes attach to the property and survive ordinary owner changes unless paid or handled at closing.

Topic: General Homestead Exemption
What to know: Owner occupied, principal dwelling, legal or equitable interest, qualifying leasehold, tax liability, annual EAV reduction, 1977 base, maximum, Cook $10,000, contiguous $8,000, other $6,000, and county administration
Best exam move: Apply the correct regional maximum to EAV, not to market value or directly to tax dollars.

Topic: Senior homestead and assessment freeze
What to know: Age 65, residence, ownership interest, tax liability, senior homestead, Cook and contiguous $8,000, other $5,000, low-income freeze, 2026 $75,000 household income, base-year EAV, annual application, improvements, rate change, and no bill freeze
Best exam move: Stack only compatible benefits, then distinguish the fixed senior EAV reduction from the income-tested base-year freeze.

Topic: Disability and veteran exemptions
What to know: Persons with disabilities $2,000 EAV, returning veteran $5,000, two tax years, service-connected disability 30 to 49 percent $2,500, 50 to 69 percent $5,000, 70 percent first $250,000 EAV, World War II veteran full exemption from 2024, specially adapted housing, surviving spouse, and incompatibility
Best exam move: Match the claimant, disability or service facts, tax year, property use, EAV amount, and prohibited combinations.

Topic: Improvement and natural-disaster exemptions
What to know: Homestead improvement, added fair cash value up to $75,000, assessed value $25,000, four years, completed and occupied, rebuilding, natural disaster, base EAV, rebuilt within two years, 110 percent square footage, application, annual renewal, sale or transfer, and no duplicate catastrophe benefit
Best exam move: Identify whether the rule temporarily shelters added improvement value or preserves a pre-disaster EAV comparison.

Topic: Institutional exemptions
What to know: Illinois Constitution, State, local government, school district, agricultural society, horticultural society, school, religious, cemetery, charitable, exclusive use, actual use, not for profit, lease, application, board of review recommendation, IDOR decision, partial taxable parcel, and continuing status
Best exam move: Ownership or nonprofit status alone is not enough; test actual use, profit use, statutory class, and approved exemption process.

Illinois Real Estate Taxes and Exemptions complete outline
Topic	What to know	Best exam move
Local ad valorem property tax	Real property, fair cash value, January 1 valuation date, local government, county, township, municipality, school district, park district, special district, public services, value-based tax, parcel, and no statewide bill rate	Treat property tax as multiple local levies applied to a parcel's taxable EAV, not as a single statewide percentage.
Assessment	Assessor, fair market value, assessed value, 33 1/3 percent, Cook County classification, farmland economic value, preferential assessment, property record card, physical characteristics, January 1, reassessment, and notice	Use the stated assessment level and never force the one-third rule onto classified or preferential property.
Review and appeal	Informal assessor review, error correction, market-value evidence, uniformity, comparable property, appraisal, arm's-length sale, board of review, deadline, written complaint, PTAB, circuit court, payment pending appeal, assessed value, and no rate appeal	Appeal the assessment on time, before the bill stage, and bring value or uniformity evidence rather than objecting only to the bill total.
Equalization	Illinois Department of Revenue, sales-ratio study, state equalization factor, multiplier, county median, 33 1/3 percent, assessed value, EAV, cross-county uniformity, overlapping districts, and no market-value substitution	Multiply assessed value by the equalization factor before subtracting EAV exemptions.
Levy, extension, collection, and distribution	Taxing district budget, levy request, county clerk, total EAV, tax rate, aggregate rate, extension, county collector, bill, installments, local government distribution, PTELL, and no individual tax freeze	Separate how much a district requests from the rate used to spread that request over taxable property.
Property-tax formula	Market value, assessment level, assessed value, equalization factor, EAV, exemption, taxable EAV, aggregate rate, percent conversion, tax bill, calculator order, and no transfer-tax units	Calculate in sequence and label every number so market value, EAV, and tax dollars never mix.
Two-year cycle and closing proration	Assessment year, payable year, January 1 value, arrears, latest bill, accrued taxes, seller credit, buyer payment, contract method, percentage adjustment, day count, bill reconciliation, and no final current bill	Recognize that the prior-year bill may be the best available estimate while the current assessment-year tax remains unbilled.
Tax lien and enforcement	Prior and first lien, January 1, penalties, interest, costs, payment, delinquency, tax sale, certificate, redemption, tax deed, title, and lien superiority	Property taxes attach to the property and survive ordinary owner changes unless paid or handled at closing.
General Homestead Exemption	Owner occupied, principal dwelling, legal or equitable interest, qualifying leasehold, tax liability, annual EAV reduction, 1977 base, maximum, Cook $10,000, contiguous $8,000, other $6,000, and county administration	Apply the correct regional maximum to EAV, not to market value or directly to tax dollars.
Senior homestead and assessment freeze	Age 65, residence, ownership interest, tax liability, senior homestead, Cook and contiguous $8,000, other $5,000, low-income freeze, 2026 $75,000 household income, base-year EAV, annual application, improvements, rate change, and no bill freeze	Stack only compatible benefits, then distinguish the fixed senior EAV reduction from the income-tested base-year freeze.
Disability and veteran exemptions	Persons with disabilities $2,000 EAV, returning veteran $5,000, two tax years, service-connected disability 30 to 49 percent $2,500, 50 to 69 percent $5,000, 70 percent first $250,000 EAV, World War II veteran full exemption from 2024, specially adapted housing, surviving spouse, and incompatibility	Match the claimant, disability or service facts, tax year, property use, EAV amount, and prohibited combinations.
Improvement and natural-disaster exemptions	Homestead improvement, added fair cash value up to $75,000, assessed value $25,000, four years, completed and occupied, rebuilding, natural disaster, base EAV, rebuilt within two years, 110 percent square footage, application, annual renewal, sale or transfer, and no duplicate catastrophe benefit	Identify whether the rule temporarily shelters added improvement value or preserves a pre-disaster EAV comparison.
Institutional exemptions	Illinois Constitution, State, local government, school district, agricultural society, horticultural society, school, religious, cemetery, charitable, exclusive use, actual use, not for profit, lease, application, board of review recommendation, IDOR decision, partial taxable parcel, and continuing status	Ownership or nonprofit status alone is not enough; test actual use, profit use, statutory class, and approved exemption process.

The VALUE method for Illinois property tax

Verify the tax year and location. Identify the January 1 assessment year, following payable year, county category, property class, and taxing districts.
Assess the property. Multiply fair cash value by the supplied assessment level unless the problem already gives assessed value.
Lift the assessment to EAV. Apply the state equalization factor, or use the stated EAV when supplied.
Use only qualifying exemptions. Match residence, age, income, disability, veteran status, improvement, disaster, or institutional use and subtract the authorized EAV amount.
Levy the aggregate rate. Convert the rate to decimal form and multiply it by taxable EAV to find the tax.
Examine timing, appeals, liens, and closing. Separate valuation appeal from tax payment, account for arrears and prorations, and remember the January 1 first lien.
Escalate uncertain eligibility. Brokers can explain the framework and use published records, but county assessment officials, tax counsel, and closing professionals decide parcel-specific applications and adjustments.

Item: General homestead
Current amount or rule: Cook $10,000; contiguous $8,000; others $6,000 max EAV
Key warning: Not cash or market-value deduction

Item: Senior homestead
Current amount or rule: Cook and contiguous $8,000; others $5,000 max EAV
Key warning: Age and residence conditions

Item: Senior freeze income
Current amount or rule: $75,000 household max for tax year 2026
Key warning: Annual PTAX-340; bill can rise

Item: Persons with disabilities
Current amount or rule: $2,000 EAV
Key warning: Cannot combine with specified veteran exemptions

Item: Returning veteran
Current amount or rule: $5,000 EAV
Key warning: Return year and following year

Item: Veteran disability 30% to 49%
Current amount or rule: $2,500 EAV
Key warning: VA certification

Item: Veteran disability 50% to 69%
Current amount or rule: $5,000 EAV
Key warning: VA certification

Item: Veteran disability 70% or more
Current amount or rule: First $250,000 EAV exempt
Key warning: Tax year 2023 and later

Item: World War II veteran
Current amount or rule: Qualified residence exempt from 2024
Key warning: Regardless of disability level

Item: Homestead improvement
Current amount or rule: Up to $75,000 fair cash or $25,000 assessed value
Key warning: Four years

Item: General assessment level
Current amount or rule: Most property outside Cook at 33 1/3%
Key warning: Cook and preferred property differ

Item: Tax lien
Current amount or rule: Prior first lien from January 1
Key warning: Until paid or statutory sale

Current Illinois property-tax checkpoints for 2026
Item	Current amount or rule	Key warning
General homestead	Cook $10,000; contiguous $8,000; others $6,000 max EAV	Not cash or market-value deduction
Senior homestead	Cook and contiguous $8,000; others $5,000 max EAV	Age and residence conditions
Senior freeze income	$75,000 household max for tax year 2026	Annual PTAX-340; bill can rise
Persons with disabilities	$2,000 EAV	Cannot combine with specified veteran exemptions
Returning veteran	$5,000 EAV	Return year and following year
Veteran disability 30% to 49%	$2,500 EAV	VA certification
Veteran disability 50% to 69%	$5,000 EAV	VA certification
Veteran disability 70% or more	First $250,000 EAV exempt	Tax year 2023 and later
World War II veteran	Qualified residence exempt from 2024	Regardless of disability level
Homestead improvement	Up to $75,000 fair cash or $25,000 assessed value	Four years
General assessment level	Most property outside Cook at 33 1/3%	Cook and preferred property differ
Tax lien	Prior first lien from January 1	Until paid or statutory sale

Which Illinois distinctions matter most?

Terms: Market value vs. assessed value
Difference: Market value is the fair cash value of the property. Assessed value applies the legal assessment level, often 33 1/3 percent outside Cook for ordinary property.
Question cue: Full property value or assessment fraction?

Terms: Assessed value vs. EAV
Difference: Assessed value comes from the local assessment. EAV is that assessed value after application of the state equalization factor.
Question cue: Before or after the multiplier?

Terms: EAV vs. taxable EAV
Difference: EAV is the equalized figure before exemptions. Taxable EAV is the amount remaining after applicable exemptions are deducted.
Question cue: Before or after relief?

Terms: Levy vs. tax rate
Difference: A levy is the taxing district's requested property-tax revenue. The rate spreads the extended amount over taxable EAV.
Question cue: Revenue requested or percentage applied?

Terms: Assessment appeal vs. tax-rate objection
Difference: The normal board-of-review appeal challenges valuation or assessment uniformity. It does not ask the board to rewrite taxing-district levies or rates.
Question cue: Parcel value error or government budget complaint?

Terms: Homestead exemption vs. judgment homestead
Difference: A property-tax homestead exemption reduces qualifying EAV. The Code of Civil Procedure judgment homestead protects a limited ownership value from certain creditors and does not calculate the tax bill.
Question cue: Tax relief or creditor protection?

Terms: Senior homestead vs. senior freeze
Difference: The senior homestead provides a regional maximum EAV reduction without the freeze's income test. The senior freeze uses a qualifying base-year EAV and a 2026 household-income ceiling of $75,000.
Question cue: Fixed EAV deduction or income-tested base?

Terms: Assessment freeze vs. tax-bill freeze
Difference: The program limits EAV growth. Increased local rates and added improvements can still increase the final bill.
Question cue: Frozen value or frozen dollars?

Terms: Exemption vs. deferral
Difference: An exemption removes qualifying value from the tax base. The senior deferral postpones payment, operates like a loan secured by a lien, and must be repaid with the statutory amount.
Question cue: Tax value removed or payment delayed?

Terms: Nonprofit owner vs. exempt property
Difference: Organizational status does not automatically exempt every parcel. The property must satisfy the constitutional and statutory ownership, actual-use, exclusive-use, and no-profit-use conditions and the approval process.
Question cue: Who owns it, how is it used, and was it approved?

Illinois Real Estate Taxes and Exemptions tested distinctions
Terms	Difference	Question cue
Market value vs. assessed value	Market value is the fair cash value of the property. Assessed value applies the legal assessment level, often 33 1/3 percent outside Cook for ordinary property.	Full property value or assessment fraction?
Assessed value vs. EAV	Assessed value comes from the local assessment. EAV is that assessed value after application of the state equalization factor.	Before or after the multiplier?
EAV vs. taxable EAV	EAV is the equalized figure before exemptions. Taxable EAV is the amount remaining after applicable exemptions are deducted.	Before or after relief?
Levy vs. tax rate	A levy is the taxing district's requested property-tax revenue. The rate spreads the extended amount over taxable EAV.	Revenue requested or percentage applied?
Assessment appeal vs. tax-rate objection	The normal board-of-review appeal challenges valuation or assessment uniformity. It does not ask the board to rewrite taxing-district levies or rates.	Parcel value error or government budget complaint?
Homestead exemption vs. judgment homestead	A property-tax homestead exemption reduces qualifying EAV. The Code of Civil Procedure judgment homestead protects a limited ownership value from certain creditors and does not calculate the tax bill.	Tax relief or creditor protection?
Senior homestead vs. senior freeze	The senior homestead provides a regional maximum EAV reduction without the freeze's income test. The senior freeze uses a qualifying base-year EAV and a 2026 household-income ceiling of $75,000.	Fixed EAV deduction or income-tested base?
Assessment freeze vs. tax-bill freeze	The program limits EAV growth. Increased local rates and added improvements can still increase the final bill.	Frozen value or frozen dollars?
Exemption vs. deferral	An exemption removes qualifying value from the tax base. The senior deferral postpones payment, operates like a loan secured by a lien, and must be repaid with the statutory amount.	Tax value removed or payment delayed?
Nonprofit owner vs. exempt property	Organizational status does not automatically exempt every parcel. The property must satisfy the constitutional and statutory ownership, actual-use, exclusive-use, and no-profit-use conditions and the approval process.	Who owns it, how is it used, and was it approved?

How does the Illinois rule apply?

From market value to tax

Scenario: An ordinary home outside Cook County has a $300,000 fair cash value. The question supplies a 33 1/3 percent assessment level, a 1.05 equalization factor, the full $6,000 General Homestead Exemption, and an 8 percent aggregate tax rate.

$300,000 times one-third produces $100,000 assessed value.
$100,000 times 1.05 produces $105,000 EAV.
Subtract the $6,000 EAV exemption to get $99,000 taxable EAV.
Convert 8 percent to 0.08.
$99,000 times 0.08 equals $7,920.

Answer: The calculated property tax is $7,920.

The exemption applied to the wrong number

Scenario: A candidate subtracts a $6,000 General Homestead Exemption from a home's $300,000 market value before applying the one-third assessment level.

The General Homestead Exemption is an EAV reduction.
Market value must first become assessed value.
The equalization factor then produces EAV.
Only then is the qualifying homestead exemption subtracted.
Subtracting from market value understates the actual exemption effect in the formula and violates the required order.

Answer: The method is wrong. Deduct the exemption from EAV, not market value.

The 2026 senior freeze

Scenario: A 68-year-old qualifying owner has 2026 household income of $72,000 and completes the annual filing. The home's tax rate later rises even though no new improvement is added.

The owner meets the age threshold.
$72,000 is below the enacted $75,000 maximum for taxable year 2026.
The annual application and other residence conditions are stated as satisfied.
The benefit maintains the qualifying base-year EAV comparison.
A later rate increase can still raise the bill.

Answer: The owner can qualify for the 2026 assessment freeze, but the program does not guarantee an unchanged tax bill.

Choosing the regional senior amount

Scenario: A qualifying 70-year-old owner lives in a county contiguous to Cook County. The question asks for the maximum Senior Citizens Homestead Exemption EAV reduction.

The owner meets the stated age and qualification facts.
The county is contiguous to Cook.
For 2023 and later, that county group uses the same senior maximum as Cook.
The amount is an EAV reduction.
No income test is attached to this senior homestead question unless the separate freeze is requested.

Answer: The maximum Senior Citizens Homestead reduction is $8,000 EAV.

Appealing the wrong thing

Scenario: After receiving a high bill, an owner files with the county board of review and argues only that the school district's tax rate is unfair. The owner offers no value, uniformity, or property-record evidence.

The ordinary board complaint addresses assessed value.
Possible grounds include excessive market value, unequal assessment, or inaccurate parcel facts.
The board does not set the school district's budget through an individual assessment appeal.
Waiting until the bill arrives may also miss the assessment deadline.
The owner should have reviewed the assessment notice and local deadline earlier.

Answer: The argument does not establish an assessment appeal. The owner is challenging a rate, not the parcel's assessed value.

The nonprofit's rented storefront

Scenario: A charitable organization owns a building. It uses the second floor for charitable services but leases the entire first-floor storefront to a commercial retailer at market rent.

Charitable ownership alone does not settle exemption.
The actual and exclusive use of each part matters.
The commercial storefront is leased with a view to profit on the stated facts.
Illinois procedures allow officials to identify and assess the taxable portion where appropriate.
The organization must use the county application and IDOR decision process rather than self-declaring the whole parcel exempt.

Answer: Do not assume a whole-parcel exemption. The commercial portion raises a taxable-use issue requiring official review.

Where do candidates misread the Illinois rule?

Trap: Every Illinois property is assessed at exactly one-third of market value.
Correction: Most ordinary property outside Cook uses 33 1/3 percent. Cook classifications, farmland, and preferential assessments can differ.

Trap: EAV and market value are the same number.
Correction: EAV is assessed value after the state equalization factor, not the property's full fair cash value.

Trap: Subtract a homestead exemption from sale price.
Correction: The listed homestead amounts reduce qualifying EAV, not sale price or market value.

Trap: The General Homestead Exemption is a flat $10,000 statewide.
Correction: The current maximum is $10,000 in Cook, $8,000 in contiguous counties, and $6,000 elsewhere.

Trap: The senior homestead and senior freeze are the same benefit.
Correction: The senior homestead is a regional EAV reduction. The freeze is income-tested and limits EAV growth against a base amount.

Trap: The 2026 senior freeze income maximum is still $65,000.
Correction: The enacted maximum is $75,000 for taxable year 2026, $77,000 for 2027, and $79,000 for 2028 and later.

Trap: A senior assessment freeze guarantees the same tax bill forever.
Correction: Rates and added improvements can still change the bill, and eligibility and annual filing must continue.

Trap: An assessment appeal challenges the amount of every local levy.
Correction: The parcel appeal challenges assessed value or uniformity. Taxing-district levies and rates are different issues.

Trap: Property-tax homestead relief is the $50,000 judgment homestead.
Correction: The $50,000 figure protects qualifying value from certain judgment creditors. Property-tax exemptions use separate EAV rules and amounts.

Trap: A nonprofit owner's property is automatically tax exempt.
Correction: Qualifying ownership, actual use, exclusive use, no-profit-use conditions, and formal exemption approval all matter.

Illinois Real Estate Taxes and Exemptions trap corrections
Trap	Correction
Every Illinois property is assessed at exactly one-third of market value.	Most ordinary property outside Cook uses 33 1/3 percent. Cook classifications, farmland, and preferential assessments can differ.
EAV and market value are the same number.	EAV is assessed value after the state equalization factor, not the property's full fair cash value.
Subtract a homestead exemption from sale price.	The listed homestead amounts reduce qualifying EAV, not sale price or market value.
The General Homestead Exemption is a flat $10,000 statewide.	The current maximum is $10,000 in Cook, $8,000 in contiguous counties, and $6,000 elsewhere.
The senior homestead and senior freeze are the same benefit.	The senior homestead is a regional EAV reduction. The freeze is income-tested and limits EAV growth against a base amount.
The 2026 senior freeze income maximum is still $65,000.	The enacted maximum is $75,000 for taxable year 2026, $77,000 for 2027, and $79,000 for 2028 and later.
A senior assessment freeze guarantees the same tax bill forever.	Rates and added improvements can still change the bill, and eligibility and annual filing must continue.
An assessment appeal challenges the amount of every local levy.	The parcel appeal challenges assessed value or uniformity. Taxing-district levies and rates are different issues.
Property-tax homestead relief is the $50,000 judgment homestead.	The $50,000 figure protects qualifying value from certain judgment creditors. Property-tax exemptions use separate EAV rules and amounts.
A nonprofit owner's property is automatically tax exempt.	Qualifying ownership, actual use, exclusive use, no-profit-use conditions, and formal exemption approval all matter.

Can you apply the rule to a fresh scenario?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. A property has $120,000 assessed value and a 0.95 equalization factor. What is its EAV before exemptions?

$114,000
$120,000
$126,000
$228,000

Show answer and explanation

Answer: $114,000

Multiply assessed value by the equalization factor: $120,000 times 0.95 equals $114,000 EAV.

2. What is the maximum 2026 General Homestead Exemption in a county contiguous to Cook County?

$5,000 EAV
$6,000 EAV
$8,000 EAV
$10,000 EAV

Show answer and explanation

Answer: $8,000 EAV

For taxable year 2023 and later, the maximum is $10,000 in Cook, $8,000 in contiguous counties, and $6,000 in all other counties.

3. What is the maximum household income for the Illinois senior assessment freeze in taxable year 2026?

$65,000
$70,000
$75,000
$79,000

Show answer and explanation

Answer: $75,000

Current Section 15-172 sets the 2026 maximum at $75,000. The later limits are $77,000 for 2027 and $79,000 for 2028 and after.

4. Which statement about the Low-Income Senior Citizens Assessment Freeze is correct?

It permanently freezes every local tax rate
It can limit qualifying EAV growth, but the bill can rise
It is available at any age if income is low
It requires no application after the first year

Show answer and explanation

Answer: It can limit qualifying EAV growth, but the bill can rise

The benefit operates through a base EAV. Rates and added improvements can raise taxes, and the applicant must satisfy age, income, residence, and annual filing rules.

5. What must a property owner generally challenge in a county board-of-review assessment appeal?

The assessor's value or assessment uniformity
The state income-tax rate
The transfer-tax stamp design
The school district's election result

Show answer and explanation

Answer: The assessor's value or assessment uniformity

Assessment appeals address the parcel's assessed value, market-value evidence, factual errors, or uniformity. They do not set the local district's levy or tax rate.

How should you review this Illinois topic?

Session: 1. Trace the tax cycle
Focus: January 1, assessment year, payable year, assessor, review, equalization, levy, extension, collection, distribution, local government, and two-year cycle
Proof you are ready: Put all six stages in order and name the responsible official or body for each stage.

Session: 2. Master EAV math
Focus: Market value, assessment level, assessed value, equalization factor, EAV, exemption, taxable EAV, aggregate rate, percent conversion, and tax dollars
Proof you are ready: Complete 30 calculations and label every intermediate number, with at least 90% accuracy.

Session: 3. Learn homestead amounts
Focus: General $10,000 $8,000 $6,000, senior $8,000 $5,000, age 65, owner occupied, principal residence, EAV, regional county group, maximum, application, and no judgment confusion
Proof you are ready: Recreate the regional amount table from memory and apply it to 20 county and claimant scenarios.

Session: 4. Update the senior freeze
Focus: 2026 $75,000, 2027 $77,000, 2028 $79,000, household income, base year, annual PTAX-340, EAV freeze, rate increase, added improvement, deferral, and no bill guarantee
Proof you are ready: Explain the freeze to a hypothetical client in 60 seconds and solve 15 eligibility questions without using the old $65,000 figure.

Session: 5. Compare specialized exemptions
Focus: Disability $2,000, returning veteran $5,000, disability percentages, first $250,000 EAV, World War II, improvement four years, natural disaster, institutional use, exclusive use, profit lease, and approval
Proof you are ready: Classify 30 claims by claimant, amount, duration, use condition, and prohibited combination.

Session: 6. Apply VALUE
Focus: Tax year, location, class, assessment, EAV, exemption, rate, appeal, arrears, proration, lien, official record, county assessor, tax counsel, and closing professional
Proof you are ready: Score at least 90% on a fresh Illinois property-tax set and explain every answer in VALUE order.

Illinois Real Estate Taxes and Exemptions focused study plan
Session	Focus	Proof you are ready
1. Trace the tax cycle	January 1, assessment year, payable year, assessor, review, equalization, levy, extension, collection, distribution, local government, and two-year cycle	Put all six stages in order and name the responsible official or body for each stage.
2. Master EAV math	Market value, assessment level, assessed value, equalization factor, EAV, exemption, taxable EAV, aggregate rate, percent conversion, and tax dollars	Complete 30 calculations and label every intermediate number, with at least 90% accuracy.
3. Learn homestead amounts	General $10,000 $8,000 $6,000, senior $8,000 $5,000, age 65, owner occupied, principal residence, EAV, regional county group, maximum, application, and no judgment confusion	Recreate the regional amount table from memory and apply it to 20 county and claimant scenarios.
4. Update the senior freeze	2026 $75,000, 2027 $77,000, 2028 $79,000, household income, base year, annual PTAX-340, EAV freeze, rate increase, added improvement, deferral, and no bill guarantee	Explain the freeze to a hypothetical client in 60 seconds and solve 15 eligibility questions without using the old $65,000 figure.
5. Compare specialized exemptions	Disability $2,000, returning veteran $5,000, disability percentages, first $250,000 EAV, World War II, improvement four years, natural disaster, institutional use, exclusive use, profit lease, and approval	Classify 30 claims by claimant, amount, duration, use condition, and prohibited combination.
6. Apply VALUE	Tax year, location, class, assessment, EAV, exemption, rate, appeal, arrears, proration, lien, official record, county assessor, tax counsel, and closing professional	Score at least 90% on a fresh Illinois property-tax set and explain every answer in VALUE order.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

Practice the Illinois rule in context

From concept to decision

Drill this topic, then review the explanation

Pass Illinois gives you original national and Illinois questions, topic-by-topic study, clear explanations, timed practice, flashcards, progress tracking, and Math Coach. Start free, find the weak distinction, and focus the next session there.

Try original questions Get Pass Illinois

Questions students ask about Illinois Real Estate Taxes and Exemptions

How are Illinois real estate taxes calculated?

A standard exam calculation moves from market value to assessed value, applies the state equalization factor to obtain equalized assessed value, subtracts eligible exemptions, and multiplies the remaining taxable EAV by the aggregate local tax rate. In compact form: market value times assessment level times equalization factor, minus exemptions, times the tax rate. Use the assessment level and rate supplied because Cook County classification and preferential assessments can change the starting assumptions.

What is equalized assessed value in Illinois?

Equalized assessed value, or EAV, is assessed value after application of the Illinois Department of Revenue equalization factor. The state equalizes counties so the median assessment level is 33 1/3 percent of fair cash value. Homestead exemptions generally reduce EAV after equalization. EAV is not the same as market value, and an exemption amount stated as an EAV reduction is not deducted directly from the sale price.

Are Illinois property taxes paid in arrears?

Yes. The Illinois property tax cycle generally takes two years. Property is valued as of January 1 in the assessment year, and the resulting bills are paid in the following year. That is why a closing often prorates accrued but not yet billed taxes. The purchase contract and closing instructions control the parties' proration method and adjustment, not a guess that the latest bill equals the current-year final tax.

What is the Illinois General Homestead Exemption amount?

For taxable year 2026, the General Homestead Exemption is an annual EAV reduction based on the increase above the statutory base, up to $10,000 in Cook County, $8,000 in counties contiguous to Cook County, and $6,000 in all other counties. These are maximum EAV reductions, not cash refunds, market-value deductions, or guaranteed reductions in the tax bill by those dollar amounts.

What is the Illinois Senior Citizens Homestead Exemption?

A qualifying resident age 65 or older can receive a maximum EAV reduction of $8,000 in Cook County and counties contiguous to Cook County or $5,000 in all other counties. The applicant generally must occupy the property as a residence, be liable for its real estate taxes, and hold the required record, legal, or equitable interest. Filing and renewal practices can vary by county under the statute.

What is the 2026 Illinois senior freeze income limit?

The enacted maximum household income is $75,000 for taxable year 2026, with the bill payable in 2027. It rises to $77,000 for taxable year 2027 and $79,000 for taxable year 2028 and later under the current statute. The applicant must be at least 65, meet the residence, ownership or qualifying interest, liability, and timing conditions, and file Form PTAX-340 each year.

Does the Illinois senior freeze freeze the property tax bill?

No. It limits qualifying growth in the property's EAV by using a base-year amount. The bill can still increase if local tax rates increase or if added improvements enter the assessment. The name assessment freeze is the clue: it is not a permanent freeze of tax rates, district levies, special assessments, or the final dollars due.

Can a property owner appeal an Illinois tax bill?

The ordinary assessment appeal challenges assessed value, not the local tax rates or the bill itself. An owner can first discuss errors with the assessor, then file a timely written complaint with the county board of review. That written board appeal is generally required before further appeal to the Property Tax Appeal Board or circuit court. Taxes must still be paid while the later appeal is pending.

Is property owned by a charity or church automatically exempt in Illinois?

No. Illinois law focuses on both the statutory ownership category and qualifying use. Religious property must be used exclusively for the specified religious or school-religious purpose and not with a view to profit. Charitable property generally must be actually and exclusively used for charitable or beneficent purposes and not leased or used with a view to profit. The organization applies through the county board of review, and IDOR makes the final administrative decision.

Are these official Illinois real estate exam questions?

No. They are original study questions aligned to Real Estate Taxes and Exemptions in Illinois III.F of the PSI broker outline effective June 24, 2026. The current Illinois Property Tax Code, Illinois Constitution, Illinois Department of Revenue guidance, and June 2026 Property Tax Study were reviewed through August 1, 2026.

Primary sources

The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.

Editorial status

Checked against primary sources

The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.

Read our editorial and corrections process

Illinois real estate taxes and exemptions

What does current Illinois authority require?

Where is this tested on the Illinois outline?

The VALUE method for Illinois property tax

Which Illinois distinctions matter most?

How does the Illinois rule apply?

From market value to tax

The exemption applied to the wrong number

The 2026 senior freeze

Choosing the regional senior amount

Appealing the wrong thing

The nonprofit's rented storefront

Where do candidates misread the Illinois rule?

Can you apply the rule to a fresh scenario?

1. A property has $120,000 assessed value and a 0.95 equalization factor. What is its EAV before exemptions?

2. What is the maximum 2026 General Homestead Exemption in a county contiguous to Cook County?

3. What is the maximum household income for the Illinois senior assessment freeze in taxable year 2026?

4. Which statement about the Low-Income Senior Citizens Assessment Freeze is correct?

5. What must a property owner generally challenge in a county board-of-review assessment appeal?

How should you review this Illinois topic?

Practice the Illinois rule in context

Drill this topic, then review the explanation

What should you study next?

Questions students ask about Illinois Real Estate Taxes and Exemptions

Primary sources

Checked against primary sources

Was this guide useful?