Disability Property Tax Exemption in Illinois: Rules and Amount

Illinois offers a disability property tax exemption that reduces the equalized assessed value (EAV) of your home by $2,000 each year, with no income limit. It is available to homeowners who meet the state’s definition of disability, own and occupy the property as their primary residence, and are liable for the property taxes. The program is formally called the Homestead Exemption for Persons with Disabilities, authorized under 35 ILCS 200/15-168.¹

Who Qualifies

To receive the exemption, you must meet all of the following:

Occupy the property as your primary residence as of January 1 of the tax year
Hold an ownership interest in the property (legal or equitable)
Be liable for paying the property taxes
Meet the statutory definition of disability

The statutory definition is specific. Illinois follows the federal standard: a medically determinable physical or mental impairment that prevents substantial gainful activity and has lasted, or is expected to last, at least 12 months or result in death.¹ A short-term injury or a condition that doesn’t limit your ability to work generally won’t qualify, even if it’s serious.

There is no age requirement and no household income cap. A 40-year-old homeowner with a qualifying disability has the same access to the exemption as a 70-year-old.

Proof the Assessor Will Accept

You document your eligibility with one of three things:

A Class 2 or Class 2A Illinois Person with a Disability Identification Card issued by the Secretary of State’s Office. Class 1 and Class 1A cards do not qualify.
A Social Security Administration disability award letter, verification letter, or annual cost-of-living adjustment letter
If you are under full retirement age and receiving SSI disability benefits, a letter indicating SSI payments

The Class 1 and 1A exclusion catches people off guard. Those cards exist for people with disabilities who don’t meet the stricter threshold the exemption requires, so simply having an Illinois disability ID isn’t enough on its own. Check the class designation on your card before you file.²

What the Exemption Is Worth

The $2,000 reduction applies to your home’s equalized assessed value, not to the tax bill itself. To estimate the dollar savings, multiply the reduction by your local composite tax rate. At a 7% tax rate, the $2,000 EAV reduction saves roughly $140 a year.² At a 10% rate, closer to $200. The savings scale with your local rate rather than with your home’s value.

You can combine this exemption with others you qualify for. A homeowner who is both 65 or older and has a qualifying disability, for example, can receive the Senior Citizens Homestead Exemption and the disability exemption at the same time, provided the eligibility rules for each are met.

If You Are a Veteran with a Service-Connected Disability

Veterans with a VA-rated service-connected disability apply for a different, more generous program rather than the general disability exemption. The Standard Homestead Exemption for Veterans with Disabilities under 35 ILCS 200/15-169 scales with the VA disability rating:

30% to under 50%: $2,500 off EAV
50% to under 70%: $5,000 off EAV
70% or higher: the first $250,000 of EAV is completely exempt from taxation

A veteran rated at 70% or higher whose home has an EAV of $250,000 or less effectively pays no property tax. The exemption carries over to a surviving spouse who holds title, lives in the home permanently, and does not remarry, and can transfer to a replacement primary residence if that spouse sells and buys again.³ A separate exemption under 35 ILCS 200/15-165 covers specially adapted housing built or purchased with federal VA funds, allowing up to a $100,000 reduction in assessed value for veterans with certain permanent and total service-connected disabilities.⁴

A disability unrelated to military service does not qualify for the veterans exemption, even if you are a veteran. In that situation you apply for the general Persons with Disabilities Exemption described above.

What Happens If You Move to a Nursing Home

Moving into a care facility does not automatically end the exemption. Under 35 ILCS 200/15-168, if you move to a facility licensed under the Nursing Home Care Act or a similar state-regulated program, the exemption continues as long as your spouse still lives in the home, or the property remains unoccupied but still in your name.¹ The veterans version of the exemption has the same rule and also covers moves to a VA-operated facility.³

Renting the property out or formally abandoning it with no intent to return will end homestead status.⁵ If you plan to be in a facility long-term, tell your assessor’s office about the change in writing and keep a copy. That protects you if the status of the home is ever questioned.

How to Apply

Applications go through your county assessor’s office using Form PTAX-343 for a first-time filing. You’ll submit:

Your qualifying disability documentation (Class 2 or 2A Illinois Disability ID, SSA award or verification letter, or SSI documentation)
Proof of ownership, such as a deed or recent property tax bill in your name
Proof that the home is your primary residence, typically a driver’s license or state ID showing the property address

Deadlines vary by county. In Cook County, the filing period for tax year 2025 exemptions opened on March 9, 2026, and the equivalent 2024 deadline fell on April 29.⁶ Call your local assessor early in the year to confirm your filing window; a missed deadline means losing the exemption for that tax year with no retroactive fix.

In Cook County, the Persons with Disabilities Exemption now auto-renews each year after your initial application is approved, thanks to recent state legislation.⁷ Practices differ outside Cook County, so ask whether you need to reapply annually. Even where auto-renewal is in place, check each year’s assessment notice to confirm the exemption appears. Catching an error before bills issue is much easier than correcting it afterward.

If Your Application Is Denied

You can appeal a denial. The first step is filing a written complaint with your county’s Board of Review on Form PTAX-230, with evidence addressing whatever the assessor found insufficient — most often the disability documentation itself. Deadlines and filing requirements differ by county, so call the Board directly.⁸

If the Board of Review upholds the denial, you can file a petition for appeal with the Illinois Property Tax Appeal Board (PTAB), which has authority to overturn local decisions. Filing at the county level first is a prerequisite to a PTAB appeal.⁹ You are not required to have a lawyer at either stage, though one can help where ownership is held through a trust or an LLC, or where the disability documentation is unusual.

1
Illinois General Assembly. Illinois Code 35 ILCS 200/15-168
2
Coles County, Illinois Government. PTAX-343 Application for the Homestead Exemption for Persons with Disabilities
3
Illinois General Assembly. Illinois Code 35 ILCS 200/15-169
4
Illinois Department of Revenue. Property Tax Relief – Homestead Exemptions, PTELL, and Senior Citizens Real Estate Tax Deferral Program
5
Illinois Department of Human Services. PM 07-02-04-a Homestead Property
6
Cook County Assessor’s Office. Deadline for Exemptions is April 29
7
Cook County Assessor’s Office. Property Tax Exemptions
8
Illinois Department of Revenue. Assessment Appeals – Property Tax
9
Property Tax Appeal Board. Practice and Procedures