Illinois laws and regulations
Illinois real estate taxes and exemptions
Keep three years separate: the year used to measure income, the property-tax assessment year and the year the bill is paid. Then keep three dollar figures separate: market value, equalized assessed value and tax due. Most errors on this topic come from mixing those labels.
Last reviewed:
The short answer
For a simplified Illinois property-tax problem, calculate assessed value, apply the specified equalization factor, subtract eligible EAV exemptions and apply the aggregate local rate. There is no single statewide bill rate. For assessment year 2026, General Homestead maximums are $10,000 EAV in Cook, $8,000 in counties contiguous to Cook and $6,000 elsewhere. Senior homestead maximums are $8,000 in Cook and contiguous counties, or $5,000 elsewhere. The 2026 senior-freeze income limit is $75,000 using defined 2025 household income, with 2026 taxes generally payable in 2027. It freezes a qualifying assessment base, not the bill.
Reviewed October 26, 2026. PSI lists this topic in Illinois III.F. The whole Additional Illinois Laws and Regulations area accounts for 10 of 40 scored state broker questions, not ten questions on taxes alone. The amount table concerns assessment year 2026. Actual county records, property classifications, eligibility, application periods and later law must be checked for a real parcel.
Follow the tax calculation and the eligibility dates
- Label the assessment year, payable year and county group. Illinois generally values property as of January 1 and collects the resulting taxes the following year. A bill paid in 2026 generally concerns assessment year 2025.
- Use the correct assessment model. Most ordinary property uses one-third fair cash value, but Cook classifications, farmland and preferential treatment can differ. If assessed value is supplied, do not apply the assessment fraction again.
- Apply the stated equalization factor to reach EAV. Then subtract the approved or expressly supplied compatible EAV reductions. An EAV exemption is not a reduction of the same dollar amount in market value or in tax due.
- Convert the rate units and multiply. Taxable EAV x the aggregate decimal rate gives the simplified tax. A rate of $8 per $100 is 8%, or 0.08. District levies, legal limits and the county clerk's extension determine actual rates.
- Test relief by program, not by label. Check residence, qualifying interest, tax liability, age, defined household income, service or disability status, relevant dates, application and compatibility. Neither a birthday nor veteran status alone guarantees every exemption.
- Separate review from payment. Assessment challenges begin locally and use assessment evidence and local deadlines. They do not set tax rates. Taxes remain payable pending the later appeal; a closing proration, exemption, tax deferral and tax lien address different problems.
| Program | Amount or calculation | Keep this qualification |
|---|---|---|
| General Homestead, Section 15-175 | Maximum EAV reduction: Cook $10,000; contiguous $8,000; other counties $6,000 | Generally the increase above the statutory 1977 EAV base, up to that maximum; eligible principal dwelling |
| Senior homestead, Section 15-170 | Maximum EAV reduction: Cook and contiguous $8,000; elsewhere $5,000 | Age 65 during the assessment year, qualifying residence, interest and tax liability; not the income-tested freeze |
| Senior assessment freeze, Section 15-172 | 2026 income limit $75,000; exemption generally current EAV minus adjusted base amount | Uses defined 2025 household income; annual application; rates and added improvements can affect the bill |
| Persons with disabilities, Section 15-168 | $2,000 qualifying EAV reduction | Disability proof, primary residence, interest and liability; cannot combine with Sections 15-165 or 15-169 for the same year |
| Returning veterans, Section 15-167 | $5,000 qualifying EAV reduction for the return year and following year | Qualifying armed-conflict return and residence dates; acquisition after January 1 can change which year qualifies |
| VA service-connected disability 30% to under 50%, Section 15-169 | $2,500 qualifying EAV reduction | Current VA certification and qualified residence; commercial portion excluded |
| VA service-connected disability 50% to under 70%, Section 15-169 | $5,000 qualifying EAV reduction | Same program qualifications; do not import a proposed new percentage threshold |
| VA service-connected disability 70% or more, Section 15-169 | First $250,000 EAV exempt under the 2023-and-later rule | Not automatically unlimited exemption on a higher-EAV residence; other applicable benefits analyzed separately |
| World War II service, Section 15-169 | Qualified property exempt from 2024 regardless of disability level | Statutory U.S. Armed Forces service and property qualifications; not every veteran category |
| Specially adapted housing, Section 15-165 | Qualified property up to $100,000 assessed value is exempt under this separate program | Specific housing, ownership/use and funding conditions; annual Illinois veterans-department certification; not the standard Section 15-169 benefit |
| Homestead improvements, Section 15-180 | Eligible added fair cash value, up to $75,000 per year | Four years after completion and occupancy, or until the next following general assessment, whichever is later; not a $75,000 cash payment |
| Natural-disaster homestead, Section 15-173 | Qualifying rebuilt residence EAV minus the pre-disaster base amount | Rebuild within two years; no more than 110% of former square footage; application and other statutory conditions |
| Religious or charitable property | Qualifying property and actual use, rather than a flat household deduction | Nonprofit or federal tax status alone does not exempt every parcel; application and official determination matter |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Assessed value, EAV and taxable EAV | Assessed value reflects the applicable assessment system. EAV applies the relevant equalization factor. Taxable EAV subtracts eligible EAV exemptions. Do not treat all three as market value or multiply by the assessment fraction twice. | Write each subtotal on its own line. |
| The assessment year and the income lookback | For the 2026 senior freeze, the statutory household-income measure uses calendar year 2025. The resulting 2026 property taxes are generally payable in 2027. Do not test eligibility using 2026 wages simply because the assessment year is 2026. | Income 2025, assessment 2026, bill 2027. |
| Senior homestead and senior freeze | The senior homestead is a regional EAV reduction without the freeze's income test. The freeze uses its own age, household-income, residence, interest, liability and base-year conditions. They are separate benefits, not two names for one application. | Match the program before applying an income limit. |
| Annual benefit and annual reapplication | Do not assume every annual exemption has the same renewal rule. Under Section 15-170(i), a previously granted Cook County senior homestead generally need not be reapplied for; loss of qualification must be reported. Other counties can waive reapplication by resolution. The senior freeze requires annual application. | An automatic senior-homestead renewal does not renew every other benefit. |
| An assessment freeze, PTELL and a tax-bill guarantee | The senior freeze protects a qualifying assessment base, adjusted for added improvements. PTELL limits specified taxing-district extensions under its rules. Neither universally caps each owner's bill or every assessment, and a higher rate can raise tax on an unchanged taxable base. | Ask whether the rule affects value, a district extension or payment. |
| An exemption and a deferral | An exemption removes qualifying value from taxation. Senior tax deferral postpones payment and operates like a loan secured by a lien, with repayment and statutory interest. Do not describe deferred taxes as forgiven. | Reduced tax base is different from money still to be repaid. |
| Property-tax homestead and creditor homestead | The homestead exemptions here affect property taxation. A judgment-creditor homestead protection uses another statute and serves another purpose. Its dollar amount is not substituted into the EAV formula. | Identify the tax question before using a homestead number. |
| A property-tax lien and an immediate tax deed | Section 21-75 describes the property-tax lien from January 1 of the levy year. At an annual tax sale, a lien is offered and a purchase certificate is issued; the purchaser does not immediately receive ownership. Redemption and a later court tax-deed process have separate technical rules. | A tax sale certificate is not an ordinary deed transferring title that day. |
Work through the facts
Calculate the taxable base in order
A simplified home problem is in a county that is neither Cook nor contiguous to Cook. Market value is $300,000; assessment is exactly one-third; the equalization factor is 1.05. Eligibility and the full $6,000 General Homestead reduction are expressly satisfied. The aggregate rate is $8 per $100 of taxable EAV.
- Assessed value: $300,000 / 3 = $100,000.
- EAV: $100,000 x 1.05 = $105,000.
- Taxable EAV: $105,000 - $6,000 = $99,000.
- Tax: $99,000 / 100 x $8 = $7,920.
Answer: The stipulated tax is $7,920. The exemption reduces EAV; it is not $6,000 of tax savings.
Find the tax effect of an exemption
A qualifying $8,000 EAV reduction is newly applied. Hold all other inputs and the stated 7.5% aggregate tax rate constant.
- Tax reduction under the stipulated rate: $8,000 x 0.075 = $600.
- The exemption amount and tax savings are measured at different stages.
Answer: The simplified tax savings are $600, not $8,000. Actual bills also depend on their actual rate and other inputs.
Use the preceding income year
An otherwise qualifying 68-year-old applies for the 2026 senior freeze. Defined 2025 household income is $72,000. Defined income for 2026 later reaches $82,000. All applicable residence, interest, liability and filing conditions for the 2026 claim are stated as met.
- The current 2026 maximum is $75,000.
- The statutory lookback for that claim is 2025: $72,000 is below $75,000.
- Later 2026 income is not substituted into the 2026 claim. A later assessment year requires its own current rules.
Answer: The stated income test for the 2026 claim is met. Do not promise an unchanged bill or future-year eligibility.
Freeze the base, then change the rate
A fully qualifying problem supplies current EAV of $95,000 and an applicable base amount of $80,000, with no added improvements. Ignore all other exemptions solely for this comparison. Compare tax at supplied 7% and 8% rates.
- Freeze reduction: $95,000 - $80,000 = $15,000. Remaining base for this comparison: $80,000.
- At 7%: $80,000 x 0.07 = $5,600.
- At 8%: $80,000 x 0.08 = $6,400.
Answer: An unchanged protected base still produces an $800 higher tax at the higher rate. The freeze is not a bill guarantee.
Use the senior amount for the county group
A qualifying owner who is 70 lives in a county contiguous to Cook. The question asks only for the maximum Senior Citizens Homestead Exemption, without a partial-year issue.
- The 2023-and-later senior maximum in Cook and contiguous counties is $8,000.
- This is the fixed senior EAV program, not an income-limit calculation under the freeze.
Answer: Select $8,000 EAV. Do not choose the $5,000 amount for other counties or treat $8,000 as a cash refund.
Identify the actual assessment challenge
An owner says the assessment record lists a larger building than the property actually has. Separately, the owner dislikes a school district's rate. The assessment appeal period is still open.
- Incorrect parcel measurements can support an assessment challenge with evidence.
- An ordinary assessment appeal does not set the school district's levy or rate.
- Use the local written complaint process and deadline. A later appeal does not suspend the tax-payment obligation.
Answer: Gather the property record and evidence of the measurement error. Disliking the rate is a different issue from proving an incorrect assessment.
Check the nonprofit's use, not just its status
A charitable organization owns a building with charitable services upstairs and a storefront leased at market rent to a commercial retailer downstairs. It assumes its federal nonprofit status exempts the whole building.
- Federal status or a nonprofit charter alone does not establish property-tax exemption.
- The claimed statutory ownership and actual-use conditions matter. Commercial use raises a separate taxable-use issue.
- The county board of review reviews the application and makes a recommendation; IDOR makes the final administrative determination, subject to the applicable review process.
Answer: Do not assume the whole parcel is exempt. The actual uses and any taxable portion require official determination; this example does not adjudicate a private claim.
Adjust the freeze base for an added improvement
An otherwise fully qualified contiguous-county problem gives current EAV $120,000 and the prior base-year EAV $95,000. A new improvement adds $10,000 to the applicable statutory base amount. The full $8,000 general and $8,000 senior EAV reductions are expressly granted and compatible. Use an 8% aggregate rate; no other adjustments apply.
- Adjusted freeze base: $95,000 + $10,000 = $105,000.
- Freeze exemption: $120,000 - $105,000 = $15,000.
- Taxable EAV: $120,000 - $15,000 - $8,000 - $8,000 = $89,000.
- Tax: $89,000 x 0.08 = $7,120.
Answer: The stated tax is $7,120. The improvement belongs in the defined base adjustment; do not subtract $10,000 again as an invented extra exemption. The other benefits are used only because the problem expressly grants them.
Compare two assessment years, not two labels on a bill
For a standard income-limit exercise, defined household income is $66,000 for calendar year 2024 and $72,000 for calendar year 2025. Ignore alternative income presumptions; all other relevant program conditions are met. Compare the 2025 and 2026 senior-freeze income tests.
- The 2025 claim uses 2024 income: $66,000 exceeds the $65,000 limit applicable to assessment year 2025. That year's taxes are generally payable in 2026.
- The 2026 claim uses 2025 income: $72,000 is below the $75,000 limit applicable to assessment year 2026. That year's taxes are generally payable in 2027.
- The amount on a bill paid in 2026 does not make every related program an assessment-year 2026 claim.
Answer: The ordinary income test fails for the stated 2025 claim and is met for the 2026 claim. This does not determine an actual application, alternative verification or future assessment-year law.
Mistakes to avoid
- Any bill paid in 2026 uses the 2026 senior-freeze limit. Identify its assessment year. A 2025 assessment generally payable in 2026 uses that assessment year's rules.
- A 2026 assessment-freeze application tests 2026 household income. The statute uses the preceding calendar year: 2025 income for the 2026 claim.
- A $10,000 exemption always reduces the bill by $10,000. Identify whether the amount is EAV, assessed value or fair cash value, then calculate its tax effect at the stipulated rate.
- Every parcel uses one-third assessment and one Illinois tax rate. Use the applicable classification or supplied model and local aggregate rate.
- Every senior or veteran must renew every exemption annually. Renewal rules are program-specific. Cook senior homestead and certain veteran claims have statutory reapplication exceptions.
- Every exemption can be added to every other exemption. Sections 15-168 and 15-169 prohibit specified combinations; apply only compatible benefits actually established by the problem.
- An appeal permits withholding tax payment. IDOR requires payment pending the later assessment appeal.
- A buyer at an annual tax sale immediately owns the home. A purchase certificate for the tax lien is different from completion of the later tax-deed process.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. Assessed value is $120,000 and the supplied equalization factor is 0.95. What is EAV before exemptions?
- $126,000
- $114,000
- $40,000
- $228,000
Show answer and explanation
Answer: B. $114,000
$120,000 x 0.95 = $114,000. The assessed value is already supplied; do not divide it by three again.
2. For assessment year 2026, what is the ordinary General Homestead maximum in a county contiguous to Cook?
- $10,000 tax refund
- $5,000 EAV
- $6,000 market value
- $8,000 EAV
Show answer and explanation
Answer: D. $8,000 EAV
The general maximum is $8,000 EAV in contiguous counties. Eligibility, the statutory base calculation and relevant exceptions remain; a maximum is not an automatic cash grant.
3. An otherwise qualifying senior lives in a county neither Cook nor contiguous to Cook. Which full-year senior homestead maximum applies?
- $8,000 EAV
- $75,000 EAV
- $5,000 EAV
- $10,000 of tax
Show answer and explanation
Answer: C. $5,000 EAV
Section 15-170 sets $5,000 for other counties, compared with $8,000 in Cook and contiguous counties.
4. Which defined household-income year ordinarily belongs to a 2026 senior-freeze claim?
- 2027, when the bill is generally paid
- Calendar year 2025
- Only the month of application
- Whichever year has the lowest wages
Show answer and explanation
Answer: B. Calendar year 2025
Section 15-172 uses the calendar year preceding the taxable year. Income as defined for the program is not automatically wages alone or federal adjusted gross income.
5. What is the maximum defined household income for the current assessment-year 2026 senior freeze, with other conditions still required?
- $8,000
- $65,000
- $75,000
- $250,000
Show answer and explanation
Answer: C. $75,000
The identified operative 2026 schedule is $75,000. Apply it to the preceding calendar year's defined household income, not indiscriminately to every bill paid in 2026.
6. An ordinary Illinois property-tax bill payable in 2026 generally concerns which assessment year?
- The buyer's chosen income year
- 2025
- 2027
- 2026
Show answer and explanation
Answer: B. 2025
The general two-year cycle assesses in one year and bills in the following year. Verify the actual county bill rather than inventing its due dates.
7. A qualifying assessment base stays the same, but the applicable rate rises. Which result is possible?
- Every other taxing district must refund its levy.
- The final bill increases despite the protected base.
- No tax can ever be due again.
- A freeze automatically cancels the rate increase.
Show answer and explanation
Answer: B. The final bill increases despite the protected base.
The senior freeze concerns a qualifying assessment base. A rate increase can increase the final tax.
8. A stipulated $6,000 EAV exemption is applied at an unchanged 8% aggregate rate. What is its simplified tax effect?
- $480 less tax
- $6,000 less tax
- $18,000 less market value is always the answer
- $75 less tax
Show answer and explanation
Answer: A. $480 less tax
$6,000 x 0.08 = $480. The EAV reduction is not an equal-dollar tax credit.
9. A question already gives $100,000 assessed value. What should you do before applying its stated equalization factor?
- Subtract the veteran percentage from every loan.
- Divide by three again in every county.
- Always multiply by the full market price.
- Use that assessed value directly; do not divide it by three again.
Show answer and explanation
Answer: D. Use that assessed value directly; do not divide it by three again.
The assessment step has already been performed. Apply the supplied equalization factor to the assessed value, then the applicable EAV reductions.
10. For an otherwise qualified 2026 claim under Section 15-169, a VA-certified service-connected disability is 60%. Which tier applies?
- $2,000 EAV reduction
- $5,000 EAV reduction
- First $250,000 EAV automatically exempt
- Every parcel completely exempt regardless of use
Show answer and explanation
Answer: B. $5,000 EAV reduction
A rating at least 50% but below 70% falls in the $5,000 tier. Do not treat proposed changes as current law.
11. A qualified residence has $300,000 EAV and an otherwise qualifying VA-certified 70% service-connected disability. Ignore every other benefit. What remains after this particular first-$250,000 exemption?
- $300,000 EAV
- $0 in all cases
- $250,000 tax due
- $50,000 EAV
Show answer and explanation
Answer: D. $50,000 EAV
$300,000 - $250,000 = $50,000 EAV remains under this isolated calculation. Other compatible relief is expressly ignored; no tax rate is supplied.
12. Can the same property claim the Section 15-168 disability exemption and Section 15-169 standard veteran exemption in the same year?
- Yes, every exemption always stacks.
- No; those provisions prohibit that combination.
- Only if a broker signs a waiver.
- Yes, because the names are different.
Show answer and explanation
Answer: B. No; those provisions prohibit that combination.
The identified statutory and IDOR rules prohibit combining those benefits for the same year. Do not subtract both without checking compatibility.
13. What is the $75,000 limit discussed for homestead improvements measured in?
- Eligible added fair cash value, subject to the statute
- A fixed reduction of $75,000 in every tax bill
- A guaranteed cash grant
- An automatic $75,000 EAV reduction in every county
Show answer and explanation
Answer: A. Eligible added fair cash value, subject to the statute
Section 15-180 uses added fair cash value. Translating it into an assessment benefit requires the applicable system; a one-third illustration is not every Cook classification.
14. A Section 15-173 question supplies an original 2,000-square-foot structure. What is 110% of that original area?
- 22,000 square feet
- 2,000 square feet
- 2,200 square feet
- 2,020 square feet
Show answer and explanation
Answer: C. 2,200 square feet
2,000 x 1.10 = 2,200 square feet. Meeting this size limit alone does not establish every other disaster-exemption condition.
15. Which is a relevant basis for the ordinary assessment appeal described by IDOR?
- Evidence that the assessment uses an incorrect building measurement
- A general objection to the state income-tax rate
- A request for a particular transfer-tax stamp design
- A demand that the board set the school district's election date
Show answer and explanation
Answer: A. Evidence that the assessment uses an incorrect building measurement
Factual assessment errors, market-value evidence and assessment uniformity can support the parcel challenge. The ordinary assessment appeal does not set district rates.
16. While a further assessment appeal from the board of review is pending, what does IDOR instruct about taxes?
- Withhold them automatically.
- Pay them pending the outcome.
- Pay only if a broker guarantees the result.
- They are permanently canceled by filing.
Show answer and explanation
Answer: B. Pay them pending the outcome.
The appeal does not itself suspend tax payment. Follow the actual forum's procedures and county deadlines.
17. For the ordinary non-homestead property exemption application described here, which process is correct?
- A sales-tax e-number substitutes for every property application
- County board of review review/recommendation, then IDOR final administrative determination
- Federal nonprofit status automatically exempts every Illinois parcel
- The listing broker grants the exemption at closing
Show answer and explanation
Answer: B. County board of review review/recommendation, then IDOR final administrative determination
The property process and use conditions differ from federal status and sales-tax exemption. Applicable hearing or review rights remain.
18. Which statement about PTELL is sound?
- It removes every need to pay property taxes.
- It permanently freezes each owner's bill.
- It caps every parcel's market value.
- It limits specified district tax extensions under its rules, not every individual bill.
Show answer and explanation
Answer: D. It limits specified district tax extensions under its rules, not every individual bill.
PTELL applies to qualifying district extensions and has its own rules. It is not a universal cap on individual assessments or bills.
19. At an annual tax sale, the purchaser receives a certificate for the lien. Does that alone immediately convey ownership of the home?
- Yes, it is always an ordinary deed.
- Yes, without any court or notice requirements ever.
- Only a mortgage lender can buy a tax lien.
- No; redemption and a later technical tax-deed process are separate.
Show answer and explanation
Answer: D. No; redemption and a later technical tax-deed process are separate.
IDOR distinguishes the lien sale and certificate from the later tax-deed proceeding. No exact redemption period or current penalty rate is assumed here.
20. Which describes senior real estate tax deferral?
- A warranty of the property's value
- An exemption that erases every future tax
- Postponed payment with a lien, repayment and statutory interest
- A tax-free transfer to the broker
Show answer and explanation
Answer: C. Postponed payment with a lien, repayment and statutory interest
IDOR describes deferral as similar to a loan, with a lien and repayment terms. It is different from an EAV exemption.
21. The distinct Section 15-165 specially adapted housing program identifies property up to $100,000 in which value measure, with its other conditions still required?
- Assessed value
- A guaranteed cash payment
- The mortgage balance only
- Every veteran's federal adjusted gross income
Show answer and explanation
Answer: A. Assessed value
The section states assessed value and has specific housing, funding, ownership/use and annual certification conditions. It is not a $100,000 EAV deduction for every veteran or the same program as Section 15-169.
22. May the same property use both Section 15-173 and Section 15-180 for the same natural-disaster or catastrophic event?
- Yes, if a broker waives the prohibition.
- No; Section 15-173(e) prohibits that same-event combination.
- No relief is ever available after any disaster.
- Yes, both always apply in full.
Show answer and explanation
Answer: B. No; Section 15-173(e) prohibits that same-event combination.
The statutory prohibition concerns the same event. A separate later event can support a separate Section 15-180 analysis; it is not a lifetime ban on all later relief.
Common questions
What is the Illinois property-tax formula?
For the stipulated ordinary model: market value x assessment level = assessed value; assessed value x equalization factor = EAV; subtract eligible EAV exemptions; then multiply taxable EAV by the aggregate decimal rate. Use the applicable classification or preferential system and the actual units provided.
What is EAV?
Equalized assessed value is assessed value after the applicable state equalization factor. It is not automatically market value. Taxable EAV is the remaining amount after the applicable EAV exemptions.
Are Illinois property taxes paid in arrears?
The general cycle assesses property in one year and bills in the next. Thus 2026 assessments generally produce bills payable in 2027. A closing proration estimates or allocates an obligation under the contract; it does not establish a universal statewide day-count method or final unbilled amount.
What are the 2026 General Homestead maximums?
$10,000 EAV in Cook, $8,000 in counties contiguous to Cook and $6,000 in other counties. The ordinary benefit uses the increase above the statutory 1977 EAV base up to the maximum, with qualifications and exceptions. It is not an equal-dollar tax refund.
How much is the senior homestead exemption?
For 2026, the maximum is $8,000 EAV in Cook and contiguous counties, or $5,000 in other counties. Qualifying residence, interest, liability and age conditions apply. A person turning 65 during the assessment year may apply during that year's county application period.
What income year applies to the 2026 senior freeze?
The defined household-income measure is calendar year 2025. The 2026 income ceiling is $75,000 and the resulting 2026 taxes are generally payable in 2027. This is different from a 2025 assessment bill paid in 2026; that assessment year uses its own rules.
Is household income just my salary or federal adjusted gross income?
Use the program's statutory income and household definitions, not an assumed salary-only or federal-AGI shortcut. The statute also permits specified alternative income verification. The county assessment office's current application explains the documents and relevant residence dates; this page does not calculate a private household's eligibility.
Does the senior freeze freeze the tax bill?
No. It supplies an EAV reduction based on a qualifying base amount, which includes the specified value of added improvements. Local rate increases can still raise the bill. Continued qualification and annual application matter.
Does every Cook County senior have to reapply every year?
For the senior homestead already granted under Section 15-170(i), Cook County taxpayers generally need not reapply, but must report loss of qualification. Other counties have their own statutory administration choices. The senior freeze is a different program with annual application; do not transfer one program's renewal rule to another.
What are the standard veterans disability tiers?
For qualified current claims, VA-certified service-connected disability of 30% to under 50% gives $2,500 EAV; 50% to under 70% gives $5,000 EAV; 70% or more exempts the first $250,000 EAV. Qualified World War II service has a separate 2024-and-later provision. Residence, certification, commercial-use, spouse and compatibility conditions still need the actual statute.
Can disability and veteran exemptions always be combined?
No. The persons-with-disabilities benefit and specified veteran benefits cannot be claimed together for the same year. Do not add every available-looking amount. Apply the particular program and any compatible benefits actually established by the problem.
What is the homestead improvement exemption?
It can shelter eligible added fair cash value up to $75,000 per year under Section 15-180. Duration is four years after completion and occupancy, or until the next following general assessment, whichever is later. The statute adds conditions for catastrophic rebuilding. A cash improvement budget is not automatically the assessor's added fair cash value.
How is natural-disaster relief different?
Section 15-173 uses a qualifying rebuilt residence and a pre-disaster EAV comparison. It requires rebuilding within two years, a structure no larger than 110% of the former square footage and timely applications, among other conditions. Flood-affected structures require a participating National Flood Insurance Program jurisdiction. It cannot be combined with Section 15-180 for the same event; a separate later event is analyzed separately.
Does a nonprofit or church automatically avoid property tax?
No. Qualifying statutory ownership and actual use matter, and a federal exemption or nonprofit charter alone is insufficient. The property application generally goes through the county board of review to IDOR. Religious and charitable claims use their own statutory requirements; a commercial use can raise a separate taxable-portion issue.
Can an assessment appeal lower the district's tax rate?
The ordinary assessment appeal challenges assessed value or uniformity, using evidence and local deadlines. It does not set taxing-district rates. IDOR describes a written board-of-review appeal as the prerequisite to the ordinary further assessment appeal, and taxes remain payable pending that later appeal.
Do all veterans have to reapply every year?
The programs differ. Section 15-169 generally requires annual reapplication, with exceptions for qualifying World War II service and for a granted claim with a VA-certified combined 100% service-connected rating and permanent and total disability. Continued eligibility still matters. The separate specially adapted housing exemption under Section 15-165 uses annual Illinois veterans-department certification.
Are these official PSI questions or personal tax advice?
No. These original teaching questions follow the identified outline and law. They do not determine a parcel's exemption, a household's income, a filing deadline, a tax-sale redemption amount or a guaranteed exam result.
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Official sources and scope
The amounts are tied to assessment year 2026 and the current identified Illinois provisions, checked October 26, 2026. IDOR explains administration, appeals and the tax cycle. The statutes govern the specific amount, duration and renewal qualifications, including where a summary is less precise. The examples use stated numbers and eligibility assumptions, not a tax bill or a private eligibility determination.
- PSI: Illinois III.F, real estate taxes and exemptions
- IDOR PTAX-1004, January 2026: value chain, extension and tax bills
- IDOR: assessment levels, local rates and installment methods
- IDOR: seller tax responsibility, contracts and reproration
- IDOR PIO-74: homestead relief, PTELL and deferral
- 35 ILCS 200/15-175: General Homestead Exemption
- 35 ILCS 200/15-170: senior homestead amounts and renewal
- 35 ILCS 200/15-172: assessment freeze, income year and base amount
- 35 ILCS 200/15-168: disability homestead and incompatible benefits
- 35 ILCS 200/15-169: veterans, qualified residence and renewal exceptions
- 35 ILCS 200/15-167 and IDOR: returning veterans
- 35 ILCS 200/15-180: homestead improvements
- 35 ILCS 200/15-173: natural-disaster homestead
- IDOR: assessment appeals and payment pending appeal
- IDOR PIO-37: property exemption ownership, use and applications
- 35 ILCS 200/15-40: religious-use exemption
- 35 ILCS 200/15-65: charitable-use threshold
- 35 ILCS 200/21-75: property-tax lien
- 35 ILCS 200/15-165: specially adapted housing and annual certification
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.