Illinois Homestead Exemption: Who Qualifies and How to Apply

The Illinois homestead exemption lowers the taxable value of your primary residence by up to $10,000 in Cook County, $8,000 in counties that border Cook, and $6,000 in the rest of the state. That reduction comes off your equalized assessed value (EAV), which is the figure your property tax bill is calculated from. Illinois also stacks several additional exemptions on top of the general one for seniors, veterans with service-connected disabilities, and people with disabilities. Knowing which ones apply to you, and filing on time with your county assessor, is what turns the rule into money back.

Who Qualifies

You qualify for the general homestead exemption if you own and occupy the property as your principal residence as of January 1 of the tax year. Ownership can run through a deed, a trust, or a life estate. If you hold a leasehold interest on a single-family home and your lease makes you responsible for paying the property taxes, that also counts.¹

The exemption is for your primary home only. Vacation properties, rentals, and investment properties do not qualify. If you own a two-flat or similar small multi-unit building and live in one of the units, you can still claim the exemption on the portion you occupy. Co-op residents are eligible too, though in Cook County they have to file a paper application rather than the online form and provide proof of tax liability through their occupancy agreement or stock certificate.²

What the General Exemption Is Worth

For tax years 2023 and after, the caps on the EAV reduction are:¹

Cook County: up to $10,000
Counties bordering Cook: up to $8,000
All other Illinois counties: up to $6,000

The savings on your bill depend on your local tax rate. At an 8% composite rate, a full $10,000 Cook County reduction is worth roughly $800 a year. In parts of Cook County where composite rates exceed 10%, the number climbs further. The reduction is not a dollar-for-dollar cut to your taxes, and confusing the two is a common mistake.³

Additional Exemptions You Can Stack On Top

Senior Citizens Homestead Exemption

If you are 65 or older, own your home, and live in it as your principal residence, you get an additional EAV reduction on top of the general exemption. For tax years 2023 and after, that reduction is up to $8,000 in Cook County and contiguous counties, and up to $5,000 in the rest of the state.⁴ Combined with the general exemption, a Cook County senior can see up to $18,000 come off their EAV. Some counties want an initial application only; others require an annual certificate of status. Check with your county assessor to be sure.³

Senior Citizens Assessment Freeze

The Senior Freeze is separate from the Senior Citizens Homestead Exemption and can be layered on top of it. Rather than taking a fixed amount off your EAV, it locks the EAV at a base-year level so it does not rise with property values. If your home’s EAV goes from $50,000 to $70,000 over several years, you keep paying based on the $50,000 figure.⁵

You must be 65 or older, own and occupy the property as your principal residence, and stay under a household income limit. In Cook County that limit was $65,000 for 2024.⁶ The freeze has to be renewed every year with income documentation. Skipping a year can reset your base-year EAV, which is expensive and hard to reverse.

Disabled Veterans Standard Homestead Exemption

Veterans with a service-connected disability certified by the U.S. Department of Veterans Affairs get an EAV reduction that scales with their rating:⁷

70% or greater disability: the first $250,000 of EAV is fully exempt
50% to 69%: $5,000 reduction in EAV
30% to 49%: $2,500 reduction in EAV

A veteran rated 70% or higher on a home with $200,000 in EAV owes no property tax on that home. This exemption requires annual renewal, and the veteran must own or lease the property as a primary residence.³

Persons with Disabilities Homestead Exemption

Homeowners with a disability who occupy their property as a primary residence and pay the taxes qualify for a $2,000 annual EAV reduction. It has to be renewed every year with the county assessor.³

Home Improvement Exemption

If you add on to your home or rebuild after a catastrophic event, the increase in assessed value from that work is sheltered for four years after the work is finished and the home is reoccupied, up to $75,000 in fair cash value (about $25,000 in assessed value). The exemption keeps a renovation from immediately spiking your bill.³

How to Apply

You file with your county assessor’s office. In Cook County, the filing period for tax year 2025 exemptions opened on March 9, 2026.⁸ Cook County deadlines have historically landed in late April, though the exact date shifts. Outside Cook County, deadlines vary, so call your chief county assessment office and confirm.

You will typically need proof of ownership (a deed, trust agreement, or mortgage statement) and proof that you live in the home (a driver’s license showing the property address, a utility bill, or voter registration). Cook County lets most homeowners file online. Co-op owners are the exception and have to submit a paper form.² Keep your residency documents. If your exemption is ever challenged, you will need them.

Renewal and What Happens When You Move

The general exemption does not usually require yearly renewal. In Cook County the assessor’s office renews it automatically for properties that have not changed hands.⁹ Many other counties do the same. But it does not follow you. If you buy a new home, you have to apply again on that property, and the exemption does not transfer to a buyer.

The specialized exemptions are stricter. The Disabled Veterans exemption, the Persons with Disabilities exemption, and the Senior Freeze all require annual renewal. For the Senior Freeze specifically, missing a year can reset your locked-in base-year EAV.

If You Missed a Year You Qualified For

If you were eligible but forgot to apply, you may be able to claim the exemption for prior years through a Certificate of Error. Cook County currently allows Certificates of Error going back several tax years. Processing takes about eight to ten weeks, and if the correction is approved, the Treasurer’s Office mails a refund check within another three to four weeks.¹⁰

Outside Cook County the process is similar and runs through the chief county assessment office. You will need to show that you owned and occupied the property in each year you are trying to recover. If you bought your home several years ago and never applied, this is worth doing. Refunds for multiple years add up.

Penalties for an Exemption You Should Not Have

Illinois treats erroneous homestead exemptions seriously, particularly in Cook County. If you receive the exemption on a property that is not your primary residence, the county can record a lien for the unpaid taxes. The lookback depends on how many years the error ran:¹

One or two erroneous years: three collection years of back taxes
Three or more erroneous years: six collection years

When a property stops being your primary residence, you are required to tell the assessor’s office by March 1 of the collection year. Doing so on time shields you from interest and penalties for the current tax year, but not from liability for prior years the exemption was in place after you had already moved.¹ Owners who convert a former home to a rental and leave the exemption in place are the most common source of these back-tax bills.

If Your Application Is Denied

If the assessor denies your exemption or you think your property’s assessed value is too high, you can appeal. The starting point is a written complaint to the county board of review with evidence supporting your position, which for valuation cases usually means comparable sales data. If the board rules against you, you can appeal to the State Property Tax Appeal Board or file a tax objection complaint in circuit court. Going through the board of review first is required either way.¹¹

1
Illinois General Assembly. Illinois Code 35 ILCS 200/15-175 – General Homestead Exemption
2
Cook County Assessor’s Office. Homeowner Exemption
3
Illinois Department of Revenue. Property Tax Relief – Homestead Exemptions, PTELL, and Senior Citizens
4
Illinois General Assembly. Illinois Code 35 ILCS 200/15-170 – Senior Citizens Homestead Exemption
5
Illinois General Assembly. Illinois Code 35 ILCS 200/15-172 – Low-Income Senior Citizens Assessment Freeze Homestead Exemption
6
Cook County Assessor’s Office. Low-Income Senior Freeze Exemption
7
Illinois General Assembly. Illinois Code 35 ILCS 200/15-169 – Disabled Veterans Standard Homestead Exemption
8
Cook County Assessor’s Office. Property Tax Exemptions
9
Cook County Treasurer’s Office. Homeowner Exemption
10
Cook County Assessor’s Office. Certificates of Error
11
Illinois Department of Revenue. Assessment Appeals – Property Tax